When someone is making a cash offer how does this really change the dynamic of the offer? In the mind of the prospective buyer it does for sure.
Does this mean that a seller should expect to take "less" than the "less" a financed offer was willing to offer? The cash offers I seen always seem to be lower offers. In contrast, if the buyers agent has presented a qualified buyer their offer is as good as cash to me. The risk of a loan blowing up is not much different than having a cash buyer back out. Honestly I expect higher earnest money from a cash buyer than a financed buyer since it all comes to teh table in the end.
Does this mean the seller can expect a smoother close? As far as I can see the only thing that cash smooths out in the transaction is that there is no requirement for an appraiial. Everything else is the same.
Is a quick close that the cash offer can provide make it better? If the property in question is financed and the seller can save a payment or two then there is value in a quick close. For the 30% of homes that are owned free & clear there is no monetary value. The value is being able to move on.
Thoughts?
Bill
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