Can all cash offers bring discounts?

[Houston321]

I personally would give a bit of a discount for cash. In fact, I did on the home I recently sold.
Along with the cash offer, if it is a quick closing, that could provide some benefit, as the homeowner wouldn't have to make the next months mortgage payment. Also, there are so many issues with loans, a cash offer provides for less stress and headaches.

[travelguy_73]

We recently bought in the area, using the traditional 20% down and conventional financing. When looking at homes, our realtor said that there were enough all cash buyers that we were at a "modest disadvantage," but only when there were multiple offers, all clustered around the same price, and maybe when getting the house appraised for the purchase price wasn't a sure thing. This is when a cash buyer would likely have a leg up. But like other posters said, the buyer will get their cash either way.

Now, if you were buying an estate sale house to gut/redo and competing against investor/flippers, you would be on more solid footing with all-cash.

[texasroots77]

Buyer gets paid at closing no matter what...They either get all funds from you or some form you (down payment) and rest from lender. In the end they get paid either way. However cash can be attractive if you are negotiating a quick closing as you could close in 10-14 days where a loan would likely need 30-45 days. It can also be attractive if you write in that if home does not appraise you will still pay the contract amount. In the end it will make your offer more appealing if their are multiple offers but an unlikely the buyer will take a big discount just for cash.

[rockinar]

Originally Posted by Failed Engineer

My wife and I are looking to purchase a home in the Westbury/Willow Meadows/Willowbend/Maplewood/Marilyn Estates/Parkwest area (prefer zoned to Red Elem) and have a budget of $400k. We'd like it to be move in ready and at a minimum modestly upgraded, if not gutted. Not over $200/sqft either.

If we pay all cash, can we negotiate a $/sqft that is lower than the current comps?

You can offer whatever you want. I turned down the cash offers on my house. Cash people all lowballed and say "But it's cash so we want (enter bad offer here)", and I said "It's lowball and I will get cash at closing from any buyer anyways. I have 5 parties who are interested my house, you can match them with your cash and be in the front of the line, or walk". They walked. No skin off my back. Plenty of offers from people with pre-approval letters.

All cash does is eliminate the headache of waiting to see if a buyer can get financing and all that nonsense. Serious buyers have pre approval letter from the bank. If they have pre-approval letter for financing, that's about as good as gold to me as far as the financial part. That's good as cash and will get you a speedy closing too.