Is Paying Cash an Advantage When Buying a Home?
The original title to this short post was going to be...
Sometimes cash will speak softly; sometimes cash will get attention. To the seller - it is all cash, even with a mortgage.
I sometimes hear things like I am paying cash and can close in a week. But the reality is sometimes sellers can't move in a week. Sometimes buyers can't get an inspection and a survey and title work done in a week.
It sounds good but most often the "cash and can close in a week buyer" is an investor picking up a foreclosure or the like.
Admittedly, there was a time when home buyers thought the mere mention of cash meant sellers would melt away and just say yes!
And while I do believe the quickest way to tear down barriers to any real estate transaction is cash.......there are times when it will work to a buyers advantage. Such as when there is a motivated seller who has equity (no short sale). Or in the case of the condo community lenders will not go near because of the number of rentals, owners in arrears, etc.. Check HUD approved condo communities here.
As a buyer do not think that cash means a low ball opportunity.
Sure there may be an opportunity for some discount but not a significant one. The cash buyer does have some leverage.
In the right circumstances cash is a powerful weapon but not an all conquering one like when the hurdle is a short sale!