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

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Rainmaker
1,140,099
Wanda Kubat-Nerdin
Your Southern Utah Residential Real Estate Agent
Prado & Kramer Real Estate, St. George, UT 435.632.9374

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
Rainmaker
518,533
Richard & Beth Witt
Broker/Owner RE/MAX Wittney Estates Long Island NY
RE/MAX Wittney Estates 516-795-6900 www.longislandrealestatesearch.com

       

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
Rainmaker
929,539
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Personal Service, always.
Waters Realty of Brevard, LLC

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
Rainmaker
599,425
Sandy Shores Broker, Melbourne FL
Brevard County FL Real Estate
M & M Realty of Brevard Inc.

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
Rainmaker
599,425
Sandy Shores Broker, Melbourne FL
Brevard County FL Real Estate
M & M Realty of Brevard Inc.

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
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Rainmaker
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Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC

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