If I pay cash will the seller accept a lower offer? Does money talk?

By
Real Estate Broker/Owner with Waters Realty of Brevard, LLC BK3064647

Is Paying Cash an Advantage When Buying a Home?

 

The original title to this short post was going to be..

Sometimes cash will speak softly; sometimes cash will get attention.  To the seller - it is all cash, even with a mortgage.

I sometimes hear things like I am paying cash and can close in a week.  But the reality is sometimes sellers can't move in a week.  Sometimes buyers can't get an inspection and a survey and title work done in a week.

It sounds good but most often the "cash and can close in a week buyer" is an investor picking up a foreclosure or the like.

Admittedly, there was a time when home buyers thought the mere mention of cash meant sellers would melt away and just say yes!

And while I do believe the quickest way to tear down barriers to any real estate transaction is cash.......there are times when it will work to a buyers advantage.  Such as when there is a motivated seller who has equity (no short sale).   Or in the case of the condo community lenders will not go near because of the number of rentals, owners in arrears, etc.. Check HUD approved condo communities here.

As a buyer do not think that cash means a low ball opportunity.

Sure there may be an opportunity for some discount but not a significant one.  The cash buyer does have some leverage.

In the right circumstances cash is a powerful weapon but not an all conquering one like when the hurdle is a short sale!

Posted by

Gary L. Waters, Florida licensed real estate broker/owner Waters Realty of Brevard, LLC, Melbourne, Florida serving Florida's Space Coast including the cities and communities of Melbourne, Viera, Rockledge, Suntree, Merritt Island, Cocoa Beach and the surrounding region.

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Chuck Carstensen 06/06/2012 05:48 AM
Topic:
Home Buying
Location:
Florida Brevard County
Groups:
florida realestate

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Show All Comments
Rainmaker
719,145
Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota Real Estate Expert

I agree. Cash gets you a slight discount in most cases.  It might get you a bigger discount on a home that just cant be financed.

June 06, 2012 05:40 AM #1
Rainmaker
984,596
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Melbourne, FL
Personal Service, always.

Chuck - There is a place for cash in the transaction most of the time. The significance of the amount depends on the parties. Thanks.

June 06, 2012 06:09 AM #2
Rainmaker
749,686
Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor Based in Jax Beach, FL

Good post. Many buyers think their terms are the best, and the seller is crazy if they don't accept. Not always true.

June 06, 2012 07:14 AM #3
Rainmaker
1,392,500
Maureen McCabe
HER Realtors - Columbus, OH
Columbus Ohio Real Estate

"And while I do believe the quickest way to tear down barriers to any real estate transaction is cash....."

Cash is good.  The best offer to the seller will win.  Hopefully the  buyer that makes the best offer  will get financed if they are not cash. 

I like cash...

 

June 06, 2012 08:07 AM #4
Rainmaker
998,120
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Pasadena Real Estate Representation 818.516.4393

Hello Gary -- the guess the best response to that question -- it depends.   So much that happens in real estate is situation based -- multiple offers or not, seller motivation, possible appraisal issues --- it does make a difference but when it comes to the final result -- the equity seller will come away from the transaction with $$$ -- regardless if it is a financed offer or all cash!  How it comes to the closing --- well, that's where the fun begins.

June 06, 2012 10:58 AM #5
Rainmaker
945,422
Bob & Leilani Souza
Souza Realty - Roseville, Rocklin, Lincoln, Loomis, Granite Bay, Penryn, Newcastle, Auburn, Meadow Vista (California) - Roseville, CA
Placer County, CA: Foreclosures, Auctions, Rentals

Gary, what I've been experiencing in our area is that cash buyers don't really have an advantage when they are competing with many other cash buyers for the same property! I've been seeing an increasing amount of multiple cash offers lately. :)

Leilani

June 09, 2012 02:06 AM #6
Rainmaker
984,596
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Melbourne, FL
Personal Service, always.

Carol - Your are correct - buyers always think their offer is the best that will come!

Maureen - Cash is very good!

Michael - It depends is appropriate. Thanks!

Leilani - I don't believe there is much of an advantage usually either. Thanks.

 

June 09, 2012 06:24 AM #7
Rainmaker
973,783
Sharon Alters
Coldwell Banker Vanguard Realty - Fleming Island, FL
Your Fleming Island Relocation Agents.

Gary, so true. Cash is not always King like Buyers think. More than once I have seen a bank take a contract with a mortgage over a lower cash offer.

Sharon

June 09, 2012 11:10 AM #8
Rainmaker
1,227,830
Wanda Kubat-Nerdin
Prado & Kramer Real Estate, St. George, UT 84770 - Saint George, UT
Your Preferred St. George Area Real Estate Agent.

Love the graphic Gary! Cash used to be a huge motivator but when a seller can get multiple offers on their property, they are less apt to take the first onethat comes along, especially if it real low.

June 11, 2012 05:50 AM #9
Rainmaker
624,290
Richard & Beth Witt
RE/MAX Wittney Estates 516-795-6900 www.longislandrealestatesearch.com - Massapequa, NY
Broker/Owner RE/MAX Wittney Estates Long Island NY

       

cash Is King... But we don't need to bow donw to it... Yes it has it's advantageous but Price still  rules..

great post as always Gary

June 11, 2012 07:47 AM #10
Rainmaker
984,596
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Melbourne, FL
Personal Service, always.

Sharon - Seems like the general consensus - cash is indeed king or in my household queen...just ask my wife!

Richard and Beth - Love that "cash is king!" Thanks!

Wanda - Thanks...love that bacon - especially the kind you can deposit in the bank!

June 11, 2012 09:14 AM #11
Rainmaker
620,871
Sandy Shores Broker, Melbourne Real Estate
M & M Realty of Brevard Inc. - Melbourne, FL
Brevard County FL Real Estate

Hi Gary, Cash can be king when we have multiple buyers for the same property, as long as that cash buyer is willing to put in a good offer. But, often, as you mentioned, cash does not get a seller to agree to a low ball offer.

June 26, 2012 01:22 PM #12
Rainmaker
620,871
Sandy Shores Broker, Melbourne Real Estate
M & M Realty of Brevard Inc. - Melbourne, FL
Brevard County FL Real Estate

Gary, Nice oints in this post. We have been seeing more realistic cash offers, as they know that they could lose out if they are up against a financed offer with a strong buyer.

July 06, 2012 03:12 PM #13
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Rainmaker
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Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC

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