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No Matter What You've Heard Cash Is Not Always King

By
Real Estate Agent with Integrity Real Estate Group

Cash Is Not Always KingThere is an old saying "cash is king" and in real estate it often rings true.  But cash doesn't always mean your offer is going to be accepted.  Why?

It's simple really.  You can't offer cash at 75% of market value and expect a seller to be ready to drop everything and sign on the bottom line.  Even though a cash deal may come without the hoops a financed deal may have it doesn't mean the home is less valuable than the comps are.



In fact a lower cash deal can hurt everyone else in a neighborhood who is trying to sell their home. Certainly each seller's circumstance is different and their are those may jump on a lower cash offer just to be done with the deal.  However don't be surprised if a seller accepts a higher offer with a financing contingency.  


Cash is not always king and in a sellers market it's just one of many offers they may see on their home.

 

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                                   Real People*Real Lives*Real Estate

If you are interested in learning more about the Northern Virginia Real Estate market including Alexandria, Arlington, Fairfax and Prince William Counties give Cindy Jones and Integrity Real Estate Group a call at 703-346-2213.

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Check out www.varealestatetalk.com and www.cjrealtygroup.com for more information.

Integrity Real Estate Group
 
Real People*Real Life*Real Estate

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Comments(16)

Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

If Cash is King, Reality is Queen!!

Kinda like going in to the auto dealership and plopping own a wad of cash and trying to work out a deal.  They've got their bottom line too!

Mar 21, 2013 05:40 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

This is something that I find myself educating cash buyers about all the time.  Sellers find cash offers beneficial on higher prices where appraisals could be an issue on financed offers.  Unfortunately cash buyers still think they deserve a discount.  Just not the reality of our current marketplace.

Mar 21, 2013 05:56 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

You said that right.  If a buyer walks in with 20% down and a higher offer, waiving the appraisal contingency, then cash isn't king. 

Mar 21, 2013 06:47 AM
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Bah Dum Chhh!  Indeed you are correct Cindy............but most people still think "cash is king"...............

Mar 21, 2013 08:45 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Featured in the group:  BARTENDER, MAKE IT A DOUBLE.

Mar 21, 2013 09:08 AM
Potranco Realty
Potranco Realty - San Antonio, TX
"Sold with Potranco Realty"

Cindy, I guess we've all had this happen to our pour seller with cash buyers, I don't understand why their agents don't educate their buyer better. 

It's all cash at the closing table once it funds....right?


Have a wonderful Thursday evening.... great blog...

Mar 21, 2013 10:42 AM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Amen, Cindy.  I sold an REO that sat on the market for 360 days.  It got lots of cash offers for 35-50% less.  The bank waited until a real offer (a loan based offer) came in and they took it.

Mar 21, 2013 11:40 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Carla-yes everyone has a bottom line and it's not always cash that meets it.

Mar 21, 2013 09:42 PM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Chris Ann-and if a cash buyer includes and appraisal contingency then there is still the possibility of an issue with the deal.

Mar 21, 2013 09:43 PM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Jan-thanks for stopping by.  Cash isn't always the winning hand.

Mar 21, 2013 09:43 PM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Roger-it has it's place in deals but it might not be the deal the seller is looking for.

Mar 21, 2013 09:44 PM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Thanks Chris Ann.

Mar 21, 2013 09:44 PM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Rob yes it is all "cash" when the deal closes.

Mar 21, 2013 09:44 PM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Mike-even lenders know the market is hot and even if a home is racking up DOM that it's worth market value not significantly less.

Mar 21, 2013 09:46 PM
Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor in Jax Beach, FL - ABR, CRS, CIPS
The perception is not always reality. Many times, a low offer, whether cash or financing, will not work in todays market.
Mar 24, 2013 04:11 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Carol-cash works well with homes that need a lot of work and a seller knows financing will run into issues.

Mar 24, 2013 07:49 AM