Cash Buyers Assume They Can Pay Less? Never Assume
Cash buyers have been making many condo sellers in Brighton and Brookline very happy these days. In general, they have an upper hand because they can waive the financing contingnecy, and they save everyone a lot of work and stress around obtaining financing.
With a cash buyer, the transaction is perceived as easier and less risky.
In turn, cash buyers and their agents assume they can make lower offers since their terms are so much better.
This assumption is flawed.
Although cash buyers offer an incentive to the seller with lower risk, offering a lower price doesn't always work. What cash buyers often forget is that many home sellers need to squeeze every penny out of the sale - thy are also buyers, in a tough market.
Furthermore, some condo sellers in Boston are just recovering their mortgage and original down payment if they bough in 2007-2008. Many buyers at that time were taking 100% financing, no money down loans, and can't afford to sell their home below a certian number.
The price a buyer offers is almost always the most important variable on the offer to purchase contract.
To the cash buyers I say, we love you, we want to do business with you, but we can't always save you money. The difference between you and the buyer with a mortgage is not the price you pay, but the fact you will actually secure a property and not have to keep searching in a market with increasing prices.
Offer a great price, give your best possible terms. Otherwise, you're still in the market, looking, putting in offers which will be rejected. Good luck with that.
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