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I have recently received 3 "All Cash Offers" on my home for sale.
One of them had to sell their house first, and it wasn't even on the market yet. One was in escrow and had a contingency for that to close, and the other was going to do a refinance on their house to get the money, but hadn't started it yet.
People please. "All cash" means that you have the money in your hot little bank account and can turn it over immediately. If you have to get a mortgage or sell a house to get the cash, you are not making an "all cash offer".
I have recently received 3 "All Cash Offers" on my home for sale.
One of them had to sell their house first, and it wasn't even on the market yet. One was in escrow and had a contingency for that to close, and the other was going to do a refinance on their house to get the money, but hadn't started it yet.
People please. "All cash" means that you have the money in your hot little bank account and can turn it over immediately. If you have to get a mortgage or sell a house to get the cash, you are not making an "all cash offer".
I sort of agree. Even cash offers can have contingencies but with that being said you have to weigh the offers and talk to your agent about putting contingencies in on your part such as you can keep marketing the property and accept a better offer if one comes in. This can work in your favor knowing you have a bird in hand.
I just think they are distinguishing between having to get a mortgage or not. To me the first two are all cash offers as no mortgage is needed. The last one no since they need a "loan" to get the money.
I just think they are distinguishing between having to get a mortgage or not. To me the first two are all cash offers as no mortgage is needed. The last one no since they need a "loan" to get the money.
I would agree with that. A "cash offer" is one where you are not financing the purchase. The cash being immediately available or not does not affect what payment vehicle you are choosing.
I sort of agree. Even cash offers can have contingencies but with that being said you have to weigh the offers and talk to your agent about putting contingencies in on your part such as you can keep marketing the property and accept a better offer if one comes in. This can work in your favor knowing you have a bird in hand.
I am not sure i agree that having an offer with contingenices such as 'selling my exisitng home' (regardless of it being in contract) is 'having a bird in hand'.
The contract might close, but it too, had a contingency (let me guess, the buyer needed to sell THEIR house?); the refi is a VERY long shot, with LOTS of time required before they see a check (and then, is the check sufficient, or do they need for YOU to make price concessions?); and the 'we need to list/sell our house is just a pipe dream. None of these is anything close to a 'bird in the hand', and indeed, sometimes turns out to be more of a pain than having no 'offer' at all. Any one of them demands a full price counter if you enter into an agreement with them, and THEY ARE NOT ALL CASH OFFERS.
An 'all cash offer' is one where the buyer has the funds in the bank and is prepared to close the deal by Friday. Anything which falls short of this and ties your hands in some/any way is a contingent offer.
An 'all cash offer' is one where the buyer has the funds in the bank and is prepared to close the deal by Friday. Anything which falls short of this (beyond condition/inspection matters) and ties your hands in some/any way is a contingent (on someone else doing something) offer.
An 'all cash offer' is one where the buyer has the funds in the bank and is prepared to close the deal by Friday. Anything which falls short of this and ties your hands in some/any way is a contingent offer.
Agreed, an "all Cash Offer" means cash in the hand, not hope in the hand that may become cash in the hand when and if I actually do get the cash from their hand to my hand so I can put it in your hand!
The "All Cash Offer" that isn't CASH IN HAND RIGHT NOW but depending on something else to maybe happen that will get the cash is nothing but a sales tactic Real Estate Agents use on sellers to close a deal.
I just think they are distinguishing between having to get a mortgage or not. To me the first two are all cash offers as no mortgage is needed. The last one no since they need a "loan" to get the money.
This is my read on it, too.
I have never seen an offer with no contingencies.
All a contingency is, is a condition introduced into the contract.
It may be a closing date, and recourse if the closing date is not met.
It may be a right to inspect and to accept the inspection results or negotiate repairs.
It may be that the property must convey with insurable and marketable title.
There are many other conditions that are hardly relevant to the source of payment that the buyer will use, whether cash or loan.
While the need to close on a current contract of sale on the buyers' current home is a weighty condition for the seller to consider, it is a "cash offer" if the buyer is not borrowing, because they will have cash to close their purchase.
Probing the offer to assess the risk is part of the due diligence of the seller, and knowledge of the buyers' details and status of the sales contract of their home in detail should help assess the risk.
So the OP gets a bundle of non-refundable Earnest Money and rolls the dice. Or rolls the dice that a better offer, cash or financed will be forthcoming.
Cash offer just means there is no contingency on buyer having to obtain mortgage. It doesn't mean that buyer can't put a contingency on selling their house first. In the instance where buyer need to sell first, the cash offer isn't as attractive as someone who do cash offer and close within 30 days but it's still a cash buy.
In my experience with cash offer. Seller doesn't ask that I have the cash sitting in my closet. I just need to show where the fund is coming from. It has always been sufficient when I show them the line of credit that I will be drawing from.
I agree with MikeJaquish. Every purchase contract has contingencies. Closing within 10 days is a contingency.
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