BUYER'S AGENTS CAN "QUALIFY" CASH HOME BUYERS TOO!
No need to spend the time writing a Contract of Sale for a CASH OFFER for a buyer, unless the agent has verified the buyer's financial condition.
DOES THE BUYER HAVE LIQUID FUNDS TO CLOSE NOW?
DOES THE BUYER PROVIDE DOCUMENTARY VERIFICATION OF FUNDS AVAILABLE.
IF FUNDS TO CLOSE ARE IN AN INVESTMENT ACCOUNT, HOW LONG TO ACCESS PROCEEDS.
IF FUNDS ARE IN A RETIREMENT ACCOUNT, HOW LONG TO ACCESS.
Finally, does the buyer have liquid funds to make a significant earnest money deposit.
WHY DO BUYERS USE "CASH" AS A NEGOTIATION TOOL?? Many believe that CASH BUYERS are the best thing since a chocolate-nut brownie. They can be. However, many "cash buyers" are not and will try to get a Contract of Sale and then change the terms and conditions of the sale to something other than real CASH.
What I've found over the years is that many buyers use CASH BUYER as a NEGOTIATING TOOL. Get a contract of sale with a low price on the promise of no financing contingency. Then notify the buyer and buyer's agent that "Oh, by the way, the buyers will be financing the purchase. Or, that the buyers plan to close in an entity other than HOME OWNER OCCUPANTS.
The buyer is entitled to have FACTS in the original offer since THAT is the basis for negotiation and acceptance of the contract.
Real estate agents, buyer's agents and listing agents have to be able to read these offers and know how to verify the sincerity of the CASH BUYER.
This post inspired by Scott Godzyk's post, When is a CASH Offer not really a CASH OFFER?
Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.