Reduce the stress of your next real estate deal by buying a home with cash and enjoy the additional benefits for both the seller and buyer that come along with it. Watch the video to learn what makes this form of purchasing one of the best real estate negotiating tips a realtor can give you!
With about 90% of my pipeline right now being cash, I felt like it was important to address “why cash is still King”.
I’ve had a lot of people asking me “Hey, if we were to offer 5000 less because we’re paying cash, do you suppose we’ll get the offer?”. No, you probably won’t get it even though you’re cash.
If you think about it, if they could just wait an extra 10 to15 days is it worth that amount of money for them to accept your offer over a loan offer.
Let’s say you just really want this home, this is the home, it’s upgraded exactly the way you want it, everything is perfect “move in ready”. One way to get the winning bid is to offer higher than appraised value.
Just a little bit higher, because a lot of times the loan cannot appraise at value which knocks them out of the running and if they don’t have the extra cash to bring in the difference, they don’t win the bid.
You’ll have a property that is just a mess, a complete fixer upper, the banks not going to insure it, because like it doesn’t have a stove, or it doesn’t have all the common amenities, someone ripped out the whole kitchen because they short sold it or they had to foreclose and they found another place that their kitchen fit perfectly, I’ve seen it, they take out the whole kitchen.
That makes it to where you can’t get a loan on the property. Paying cash- You win.
To some sellers the fact that you’re paying cash and you’ve saved up all your money and you’ve decided to pay one lump sum, that’s impressive! Sellers do not forget, it’s awesome, especially if you’re owner occupied, it’s something very respectable to pay all cash.
It makes negotiating for the home you want a lot more easy, you can afford to give them a couple extra days in the house so they can do a simultaneous close with another home.
You can offer them just a little bit more money with a faster close of escrow, you don’t have to make the offer contingent on an appraisal.
You have no loan contingencies and loan contingencies they make for longer escrows.
You don’t have to make the inspection a contingency, which I do suggest you get a home inspection and possibly a pest inspection, and if any other kind of things pop up, it’s good to keep your options open.
And that is why “Cash is still King”!
If you have any questions I’m around when you need me, see you soon.