Cash Buyer vs. Conventional Buyer…

Well written list of tips. I've even had the Loan Company Boss make a call for me to stress the financial strength of the Buyer.

Intresting how the tide changes. From everything for sale, easy credit, etc. now to little for sale and buyers needing more and more cash reserves in order to compete. 

Yes once the deal is closed it is the same.  But you have to compete well to win over cash.  No appraisal and short close.

Excellent post. Most problems with some cash buyers also they think that as long as it's cash they can low ball and I keep telling cash buyers, that is not the case. If you have put an offer on a property and are offering 10 or more percent less than the asking price and then a 10-15 day option period. That is a crappy offer especially when closing comps in the area are selling between 2-5% less list price with conventional and 5-10 option period.  I show them comps in black and white and they still don't get it. Last house one of my buyers purchased, I showed what a good contract looked like. He got the house and he was a conventional. Did tweak a little but still and we closed in less than 30 days.

Jon, thank you for a great read.  So true.  I really liked your comment about being "well-qualified."  Congratulations on your feature. 

Excellent post!!!  I always tell buyers I am working with that it is not always about price...it is also about terms.  Terms can indeed give a financing buyer an edge on a cash buyer.

Being quick to get an offer in helps.  Sometimes if you meet the seller and make a good impression that also helps.

I have seen many a seller accept a better priced offer even if they require financing terms.  Cash is not always king. 

Nice points, I also love the video intro's my lenders provide!

In any market cash is king. Unless the earnest money is substantial (non refundable) and offering to buy as is, it's a challenge to compete with a cash buyer and if you're able to have your funds available and can close in 30 days or less, then you might be successful.

Thanks Jon, those are some good tips.  I always point out to my buyer, if they are financing and may be competing against cash buyers, they need to give the seller an incentive to accept their offer over the cash offer.  If I am representing the seller and get 2 offers, 1 cash and 1 financing, I explain the pros and cons of both and let the seller decide.  In the end, it actually comes out to 50-50 on who wins.  If the cash is less and the seller can wait, sometimes it is in their best interest to take the one that is getting financed.

Following your tips can make a buyer who needs to finance the purchase of a home shine in the very best light. Will that make the “bullet proof”? No! A cash buyer who is willing to buy with no inspections, no appraisal, no contingencies and a quick close will win by offering the same or nearly the same amount.

Cash truly is KING. There has to be enough cash…not low ball kind of cash. There has to be competitive terms. But, given equal opportunity, sellers will go for the cash. A buyer who is buying at the top of the range for which they are qualified and does not have the cash to bridge the gap of a short appraisal will not be able to compete with a cash buyer who is will and able to pay more.

When a cash buyer and conventional buyer are close, a buyer cover letter may tip the scales.

Great reminders Jon and an important post to remind all that many times it is equal if you have the right agent who does the job well in an offer situation.