Will an all cash offer on a REO property close faster than an offer from a buyer who is preapproved for a mortgage loan?

Asked by Pat Carroll, Belmont, CA Fri Aug 17, 2012

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7
Cindy Davis, Agent, San Diego, CA
Fri Aug 17, 2012
Generally speaking, yes, a cash deal would be faster -- no waiting for appraisals or underwriting approval. if you are buying a condo, it may not make as a much if a difference because you do have to wait for HOA docs.

Cash is the game these days...it will help you win any multiple offer, save money you might have spent on a mortgage, and close the deal more quickly.
0 votes
Scott Hopper, Agent, Grass Valley, CA
Fri Aug 17, 2012
Cash is king in today's market.
0 votes
Teri Andrews…, Agent, Auburn, CA
Fri Aug 17, 2012
Yes usually. Some REO sellers want cash offers to close in 15 days or less.
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Shanna Rogers, Agent, Murrieta, CA
Fri Aug 17, 2012
Hi Me,

Usually, yes. Since there is no loan, there are no appraisal or funding issues - which tend to slow things down.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes
Keith & Kins…, Agent, Verona, WI
Fri Aug 17, 2012
In general I would say yes. Cash buyers have less hurdles to jump through without an appraisal or financing contingency. We just sold a property to a cash buyer that only took 8 days from offer to closing.
0 votes
Steven Ornel…, Agent, Fremont, CA
Fri Aug 17, 2012
Me:

Simply put, yes!

Obviously, there is no loan approval to deal with, which is typically of primary concern in any transaction.

-Steve
0 votes
Teresa Dietr…, Agent, Grass Valley, CA
Fri Aug 17, 2012
Typically the cash buyer can close much faster than a buyer with a loan and there are fewer contingencies which is why the REO companies sometimes prefer to work with cash buyers. Appraisals can be very difficult for homes that don't fit that perfect cookie cutter mold, cash buyers usually are not contingent upon an appraisal.
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