buying with cash, what should we expect during the process, can we come in with a much lower offer?

Asked by Mary, Illinois Sun Dec 9, 2007

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Michelle Car…, Agent, Coppertino, AL
Tue Apr 26, 2011
The Seller expects that you will perform and perform quickly without asking for other contingencies, repairs or conditions. You need to look at the average days on market and pricing to determine this. However, much depends on the Seller.

I've had Sellers prefer to hold out for $10K higher price with a non-cash buyer and others tell me they'd take a 5% discount for a non-contingent, 14-day closing contract. Have your agent ask the seller agent whether they've received any offers; if so, were any all cash; why they didn't work out; and whether they'd consider a discount for cash offer.

However, in multiple offer situations I've seen cash buyers foolishly think they can offer only asking price or less than asking for cash, which ends up wasting everyone's time.
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Torquil Cree…, Agent, Austin, TX
Tue Apr 26, 2011
In my experience, working with several cash investors and cash home buyers--the answer is a BIG yes!! As several others have pointed out it does depend on several factors. But I have presented offers-- that have been accepted-- that my Real estate friends told me I was CRAZY for presenting!! MASSIVELY less than asking!! My job is to get the best possible price for my buyer.
When it's a cash offer that can close quickly-- the answer is often YES!
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David Hitt, Agent, Los Angeles, CA
Sun Dec 9, 2007
There are many factors that a seller will judge your offer by. The most important things about an offer are price, terms, escrow period, down payment and the buyer's financial qualifications. Your offer certainly will look more attractive to a seller because you will not need an appraisal or loan contingency. However, most sellers I come across today are most interested in the amount of money in their pocket at the end. I hope this helps.
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Salt Lake Ag…, , Salt Lake City, UT
Sun Dec 9, 2007
Hi Mary, there definitely market conditions that matter.

Cash for cash sake, the only real difference it makes is, that there is no loan and usually no appraisal condition to the contract and can close quickly.

Now with that said if closing in a few days is the most important thing to seller then you are in a good position.

From the seller's perspective if a person gets a loan or pays with cash, the seller gets a check at closing.
A well qualified buyer with a good down payment and the ability to close in a couple of weeks is pretty much the same.

There is a definite value, not as much as people think.
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ian cockburn, Agent, New Orleans, LA
Sun Dec 9, 2007
In Diamondhead, you probably can...but alot will depend on the condition of the property. In Diamondhead, make sure and get an elevation certificate to help your insurance on the home.

I would not arbitarily throw in a much lower offer unless you tied it down to specifics such as:
Buy with cash, close in 30 days or less....or another variation would be cash with no inspections/as is.
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Durenda Fach…, , Coastal Tampa Bay area. Pinellas and Pasco Counties.
Sun Dec 9, 2007

The answer to your question would be: That depends.

Depends on
the motivation of the seller,
ability of the seller to sell at the discounted price (many sellers are leveraged out or their equity and can not take a low ball offer because they can not come to the closing with money),
the cleanness of the contract.

If the seller has enough equity or if not, has the ability to bring money to the closing table,
If it is advantageous to the seller to close quickly
If there are no contingencies, or if the contingencies are settled quickly,
The seller may accept a lowerer cash offer than one that a buyer needs to obtain financing.

However, if the cash offer has an average closing date (30 - 45 days, depending on area), and/ or has open ended contingencies, the seller is no better off with a cash offer than with an offer from a pre approved or even just a pre qualified buyer.

best of luck
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