a cash deal, offer less (how much) ?

Asked by John, 19406 Fri Jul 11, 2008

I'd like to buy a 330K town-house in cash with a quick closing date, e.g. in 2 weeks. Is there any difference between a cash deal and 200K plus130K Mortgage deal please? How much less (or x%) should be considered? Advice/comment is highly appreciated.

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D. Derderian, Agent, West Chester, PA
Sun Aug 3, 2008
This is a question for your agent. Not Trulia. Unless your not satisfied with the answer your agent is giving you.
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Chris & Step…, Agent, Philadelphia, PA
Fri Jul 11, 2008
A cash deal always has more leverage from a negotiation standpoint. Your terms are excellent and provide you with a strong basis to negotiate. How much to negotiate would depend on the listing price, how long it has been on the market, the competition and so forth...

Good luck with your deal !

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Sandy Shores, Agent, Melbourne, FL
Fri Jul 11, 2008
Hi John,

Often times a cash transaction with a quick close may appear more attractive to a motivated seller. Cash means that there is no mortgage for a buyer to qualify for, no appraisal that is required on the home and sometimes a cleaner, smoother transaction, with no strings attached.. Sometimes, depending on the particular property, a cash buyer is willing to take the property in "as is" condition, without asking for any repairs, if the seller is willing to take their sometimes lower offer. A home inspection is still recommended to be sure there are no serious concerns with the property. A quick cash closing may mean less in mortgage, tax, insurance and utility payments to a seller, if they are in a position to get out in 2 weeks. If they can't move that fast, then a quick closing would not be a motivating factor to them at all.

Today, cash may appear more attractive, in this day of stricter qualifying and lending limits. Many buyers and investors have been pushed out of the market because of these new regulations.

However, I've seen cash buyers think they should automatically get tens of thousands of dollars off the price of a home. And, I've seen sellers completely disinterested in whether the buyer was paying cash or getting financed. So, it can go both ways.

The amount of your offer depends on several different factors. What have similar homes in the area sold for? What is the motivation of the seller? Are they behind on the payments? Are they going into foreclosure? Is it a bank owned property? How much do they owe on the mortgage? The seller's situation may determine what they can and can't accept as a sales price on the property.

Do your homework upfront. Find out more about the seller's situation. The best real estate transactions are when the buyers and sellers are able to reach amicable terms that suit each party. Every real estate transaction is different, and buyer and seller motivations vary depending on those individual situations.

Best wishes to you!
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Dallas Texas, Agent, Dallas, TN
Fri Jul 11, 2008
There is no difference between the 2 the seller will still net the same
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