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.

 

close

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

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
780,211
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.

Jun 06, 2012 05:40 AM #1
Rainmaker
1,075,716
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Melbourne, FL
Small Office, Big Service

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

Jun 06, 2012 06:09 AM #2
Rainmaker
778,120
Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor in Jax Beach, FL - CRS, CIPS, SRES

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

Jun 06, 2012 07:14 AM #3
Rainmaker
1,404,995
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...

 

Jun 06, 2012 08:07 AM #4
Rainmaker
1,305,745
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
PasadenaCA 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.

Jun 06, 2012 10:58 AM #5
Rainmaker
979,415
Bob Souza (925) 513-3400 & Leilani Souza (916) 408-5500 Souza Realty - Real Estate Broker in Placer County, California
Souza Realty - Roseville, Rocklin, Granite Bay, Loomis, Penryn, Newcastle, Lincoln, Auburn, Meadow Vista (Placer Coun... - Roseville, CA
Homes & Land, Real Estate Investments and 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

Jun 09, 2012 02:06 AM #6
Rainmaker
1,075,716
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Melbourne, FL
Small Office, Big Service

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.

 

Jun 09, 2012 06:24 AM #7
Rainmaker
1,015,711
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

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

Jun 09, 2012 11:10 AM #8
Rainmaker
1,369,361
Wanda Kubat-Nerdin
PK Real Estate Utah, 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.

Jun 11, 2012 05:50 AM #9
Rainmaker
801,284
Richard and 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

Jun 11, 2012 07:47 AM #10
Rainmaker
1,075,716
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Melbourne, FL
Small Office, Big Service

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!

Jun 11, 2012 09:14 AM #11
Rainmaker
651,374
Sandy Shores Realtor®, Melbourne Real Estate
M & M Realty of Brevard Inc. - Melbourne, FL
Brevard County Real Estate, Florida's Space Coast

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.

Jun 26, 2012 01:22 PM #12
Rainmaker
651,374
Sandy Shores Realtor®, Melbourne Real Estate
M & M Realty of Brevard Inc. - Melbourne, FL
Brevard County Real Estate, Florida's Space Coast

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.

Jul 06, 2012 03:12 PM #13
Post a Comment
Spam prevention
Show All Comments
Rainmaker
1,075,716

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

Small Office, Big Service
Whatever your need, let me help you!
*
*
*
*
Spam prevention

Additional Information