House Hunting Amidst Cash Buyers?

By
Real Estate Agent with Long and Foster REALTORS®, Gainesville, VA VA License # 0225089470

House Hunting Amidst Cash Buyers?

If you are a buyer scrambling for a home in our low inventory year end market, don't get to thinking you can't compete with cash buyers.  Buyers with little or no experience doing this, might feel like giving up if they heard from their agent that the listing agent had a cash offer.  Why?  What is the listing agent actually saying?

Cash offers rarely do what they should do in a seller's market where inventory is limited and go in at or above list price with no contingencies.  Instead, these cash buyers somehow believe that there is some sort of magical in the cash itself.  These buyers will usually come in below list price.

Since it is all cash to the seller, even a mortgage that may take two or three weeks longer to close, why wouldn't the seller wait for that additional money?  It's not costing them anything but utilities, taxes, insurance and HOA to wait.  

Competing with cash offers is not as challenging as you may think.  You may have re-evaluate the need every contingency available to you to add into your offer.  But don't let the fact that there is a cash offer intimidate you.  You can compete if you really want the house.

Comments (6)

Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Chris Ann- that makes a lot of sense. Just because there is a cash offer...you don't know what the offer is, if there are any conditions, or what's going through the seller's mind. 

Nov 19, 2020 05:43 PM
Chris Ann Cleland

In my experience, cash buyers like to think they are entitled to some sort of discount.

Nov 20, 2020 11:58 AM
Anna Banana Kruchten CRS, CRB, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Absolutley true Chris Ann Cleland . In that last crazy sellers market cash buyers thought they were king/queen and did come in lower than list.  Didn't fly if other buyers were well qualified and had all their financial ducks in a row.

Nov 19, 2020 07:33 PM
Chris Ann Cleland

And they would beat all offers if they realized that they had the ability to waive appraisal and pay higher.

Nov 20, 2020 11:59 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

That is a great pep talk. I've seen cash buyers come in $5-10K low and ask for  closing costs in Covid times (Ain't going to happen to my listing) 

Happy Thursday Chris Ann Cleland 

Nov 19, 2020 09:21 PM
Chris Ann Cleland

Cash buyers are nothing to get excited about in my world.

Nov 20, 2020 11:59 AM
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, Chris Ann Cleland when rates were very high, cash was king!!! now it's on the same level as a well qualified buyer who must secure a mortgage.... sale price would be king!

Nov 20, 2020 02:50 AM
Chris Ann Cleland

You said it!

Nov 20, 2020 11:59 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Chris Ann Cleland - true cash offers sound enticing but you need to know the commitment behind that offer.

Nov 20, 2020 06:21 AM
Chris Ann Cleland

And if there is a buyer expecting a severe discount because of the cash, then it is unlikely a seller is going to capitulate.

Nov 20, 2020 12:00 PM
Rocky Dickerson
Realty One Group - Las Vegas, NV
Superior Service!

Good morning Chris Ann Cleland and great tips about going up against cash buyers.

Nov 20, 2020 09:30 AM
Chris Ann Cleland

Have a great weekend.

Nov 20, 2020 12:00 PM