Is Cash King When Making Offers on Homes?
Sellers do like to see cash offers. However, bottom lines are often most important to sellers. If you care able to get a great deal because of a cash offer it typically because the property is hard to finance, or in a less then ideal location.
Is Cash King When Making Offers on Homes?
Many buyers feel that cash offers are preferred by all sellers and therefore offer much less than the asking price.
A few years ago when mortgages were much more difficult to obtain, cash offers carried much more weight than in today’s real estate market. Now days, most buyers are pre-approved prior to shopping for a new home and it is less likely that a home will not go through if a mortgage is to be obtained.
At the end of the day, sellers get the same check at the closing table whether the offer is cash or whether it has a mortgage funding the purchase.
Yes, sellers are always impressed with cash offers because they can typically close sooner and sometimes there is not an appraisal condition in the contract to buy. However, the fact that the seller is paying with cash does not mean that the seller is willing to take thousands of dollars less for their home.
When working with cash buyers, I have noticed that they never offer the list price on homes. They are looking at the purchase more from an investment stand point and want a good return on their dollar from day one. It may take several attempts to get a home under contract when working with cash investors, but eventually they come to fruition. As the Realtor representing cash buyers, patience is the key.
Belinda Spillman
Aspen Lane Real Estate
Metro Brokers Marina Square
(303) 884-2026
www.BelindaSellsColorado.com
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