How much can Cash Buyers Negotiate Off the List Price on a Wellington Home?

By
Real Estate Agent with Hansen Real Estate Group Inc.
How much can Cash Buyers Negotiate Off the List Price on a Wellington Home?

There are many benefits to paying cash for a Wellington FL home, primarily you will not have a mortgage contingeny when writing an offer, but will removing this contingency give you leverage when negotiating the purchase price on a Wellington home?

Wellington Cash Home BuyersThe amount of money a cash buyer will be able to negotiate off the list price of a Wellington home will vary.  Some 
cash buyers will pay more then list price, some will pay list price and others will pay below list price.

I know a lot of cash buyers are under the impression they will be able to negotiate 10%, 20% or more off a Wellington home because they are paying cash, but unfortunately that is not the case.  

Last month, January 2012, 56% of Wellington home buyers paid cash for their new home and the median list to sales price
ratio for these buyers was 96.7%, meaning on a $500,000 home cash buyers paid $483,500.


So if you are a cash buyer looking to purchase a home in Wellington Florida you may be able to negotiate off the list price, but based on statistics it is unlikely you will be able to negotiate 10% or more off the list price of the home because you are paying cash.

Looking for a home in Wellington FL?  Contact us today or fill out our Online Buyer Questionnaire to receive a list of homes for sale that fit your needs.


Information provided by RMLS on February 15th, 2012 and deemed reliable, but not guaranteed.
Originally posted at
http://wellingtonhometeam.com/how-much-can-cash-buyers-negotiate-off-the-list-price-of-a-home/

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate General Information
Location:
Florida Palm Beach County Wellington
Groups:
Palm Beach County Homes for sale- South Florida Real Estate for Sale
Wellington Homes for sale- South Florida Real Estate for Sale
Posts to Localism
Palm Beach County Pros
Palm Beach Florida
Tags:
wellington cash buyers
buying a wellington home
negotiating the list price

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Ambassador
1,509,412
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

I haven't pulled my stats yet but I think Wellington cash home buyers beat Las Vegas cash home buyers.  We hover between 50-54% and haven't gone over the 54% threshold yet.

That being said, obviously cash buyers have competition my market as well as yours.  When you are low on inventory that can still create bidding wars between the cash buyers and drives the price up!

Feb 22, 2012 10:45 PM #1
Rainmaker
2,463,929
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Around my neck of the woods, cash really means you can perform quick. If someone is approved for a loan then they are on par for cash dynamics is my experience

Feb 22, 2012 10:54 PM #2
Rainmaker
1,333,948
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL
REALTOR

Renee - FINALLY!!! I NEVER thougth Wellington would beat Vegas with cash buyers

Richie - That's another great plus, but often times irrelevant if the property is a short sale. 

Feb 22, 2012 11:07 PM #3
Rainmaker
3,359,641
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Michelle -- very true - many homebuyers think that they can "steal" a property with Cash.  NOT! The percentage of cash transactions has increased in our market as well and often times there will be multiple offers with multiple all cash buyers -- it may give a competitive advantage in some cases but not a signifcant price difference in the typical transaction.

Feb 22, 2012 11:25 PM #4
Rainer
71,580
Kevin Nash
Shorewest Realtors, Metro Milwaukee - Germantown, WI
ABR, CSRS

That is amazing that 50% of the people buy homes with cash. Wow, Great stats. I definately work the wrong market.  I don't think have stats like that by us, I never thought really check.

Feb 23, 2012 12:18 AM #5
Ambassador
428,985
Rich Cederberg
eXp Realty - Albuquerque, NM
eXp Realty Agent Albuquerque

The cash buyer may move more quickly but they don't save the seller anything in the long run.  And moving fast isn't always what a seller wants or needs.  Reality check!

Feb 23, 2012 12:22 AM #6
Rainmaker
1,333,948
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL
REALTOR

Michael - I couldn't agree with your more.  Almost every single one of my buyers has been in a mulitple offer situation and almost all of my listings have had multiple cash offers.

Kevin - We're typically in the 40%-50% range, which I know is still higher than most areas, 56% is one of the highest I've seen in the past year or two.

Rich - You are absolutely right

Feb 23, 2012 01:39 AM #7
Rainmaker
682,866
Sidney Kutchuk - Realty Works Temecula Kutchuk - Realty Works Temecula
Realty Works Temecula - Temecula, CA
Realty Works Temecula

Michelle:  I blogged about this topic several times last year...and I had several cash buyers who thought they could offer way less than market, just because they were cash.  Banks, sellers, and negotiates like cash offers but will wait for a financed buyer if all of the cash offers are too low.   Great post that I wish others would blog about also.

Feb 23, 2012 12:46 PM #8
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
1,333,948

Michelle Gibson

REALTOR
Have a Wellington Real Estate Question?
*
*
*
*
Spam prevention

Additional Information