will paying cah for a house be easier and speedier?

Asked by Maureen, Fowlerville, MI Mon Feb 15, 2010

can I offer less when paying with cash??

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Tom Boos’ answer
Tom Boos, Agent, Mack Avenue, MI
Thu Feb 18, 2010
Absolutely!!!! The whole process is much simplified since the entire mortgage process is eliminated from the equation. And, often a prospective Buyer may indeed be able to pay a bit less for the property. My suggestion would be to engage the services of a local Realtor to make sure your interests are protected. A home inspection by a qualified hme inspector would be money well spent. You may also think about having your own appraisal done even though it's not required to complete the transaction. Good Luck.
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Alan May, Agent, Evanston, IL
Mon Feb 15, 2010
It will likely impress the seller, as they don't have to wait for your to get your mortgage comittment, before they know that you will be going through with the deal... so one contingency less to worry about... and yes, that's worth money to the seller (how much, will largely depend on the deal you can negotiate).

It will also speed up the closing... 'cause in a typical closing, most of the paperwork is from your lender... a typicaly 2-3 hour closing, might be an hour.

Good luck.
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Dan Chase, Home Buyer, Texas City, TX
Mon Feb 15, 2010
No financing hassles are great!

Just make sure you insist in getting an appraisal contingency in your offer. You do not want to overpay just because you have the cash in hand.
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Tony Grech, Mortgage Broker Or Lender, Southfield, MI
Mon Feb 15, 2010
All things being equal, yes a cash offer is speedier and easier. Not having to deal with a mortgage contingency and the issues that can arise in the process is appealing to a seller. You may be able to offer less, depending on the house itself. For example, if the house is in need of several repairs and may not be able to qualify for financing due to the condition then a cash offer is much stronger. But if the house is in pristine condition and priced competitively already to attract multiple bids then a cash offer may not be that much more advantageous. Your best bet is to allign yourself with a good Realtor who can answer all these questions for you and direct you properly

Best of luck
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Scott Godzyk, Agent, Manchester, NH
Mon Feb 15, 2010
Maureen when purchasing, terms are as important as the offer. Often they go hand and hand meaning if you are offering better terms, you can get it at a better price. The key is the elimination of contingincies. If there is no mortgage contingincy, the owner knows the deal is solid, is going to close and is closing in 21 days say instead of 45 days. with a mortgage contingincy they will not even know if teh deal is going to close for 30-37 days, so taking what is in hand is better than gambling for a little more and a maybe. Your buyer broker can guide you on what is an accceptable offer with any specific property. Garner what it is worth and base your offer on that rather than taking a set percentage of the asking price. good luck with your search.
Web Reference:  http://www.ScottSellsNH.com
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Don Tepper, Agent, Burke, VA
Mon Feb 15, 2010
Yes and yes.

If you pay cash, you'll eliminate all the time and effort involved in obtaining financing.

And cash offers are stronger than offers requiring financing. So, often, people paying cash do offer less. That's a negotiating tactic, and doesn't always work. For instance, if someone owes $300,000 on their mortgage and the house is on the market for $330,000 (essentially enough to pay off the mortgage, pay the real estate agent, and cover other closing costs), and you offer $289,000, all cash, that's probably too low for the seller to be able to accept. But if there's enough equity in the property, you stand a much better chance of having your lower offer accepted.

Hope that helps.
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