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Old 02-06-2018, 09:16 PM
 
878 posts, read 1,198,613 times
Reputation: 1137

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Quote:
Originally Posted by howard555 View Post
Well qualified buyers?
Not born here (and maybe not even legal) and despite so called good job they say they have, they still pay high rent.

This rental house was ready to be rented and here comes a cash buyer as described above. Their first comment was it will save the commissions. The seller pays the 6% commission.
Our first thought was whether they were trying to slide around a legal contract.

So they offered 30% lower than what we would have netted had it been listed at an asking price, offered a 10% discount along the way, and seller pays the 6%.

When the right person who is willing to sit down in a lawyers office and do it the right way comes along and they have cash and willing to pay what we'd net if it was through a mortgage we'll listen. If we desire a seller's agent as well they do not need to be concerned about the commission.
A too low offer is a COMPLETELY separate issue-- if it's too low, then turn it down-- but that hasn't been your main complaint, it's been a fixation on why a buyer would choose to pay cash instead of getting a mortgage.

You keep casting aspersions on these people's spending habits, yet they still appear to have enough cash to buy a house outright, so, they sound like they're doing something right :shrugs:

You must realize that there are PLENTY of people not born in this country that are here legally and are even US citizens. It would be pretty darn difficult to have a "so called good job" without legal standing in the US as most employers check immigration status.

If you don't want to sell at the price that they want to pay, then, by all means, walk away.

And, again, if and when they come up with the right price (either this buyer or another), you can ensure that they don't "slide around a legal contract" by having legal representation at closing, as you mentioned that you would.

Again, best of luck.
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Old 02-06-2018, 09:47 PM
 
Location: Denver CO
24,204 posts, read 19,038,282 times
Reputation: 38265
A cash offer has nothing to do with not paying the agent commission, the method of payment is irrelevant as far as that goes.

It's true that some buyers seem to think they are entitled to some big discount with paying cash, which certainly doesn't make much sense. Maybe a small discount because it will be a quicker, easier transaction without worrying that the house will appraise, but it would be nominal at best. And depending on the market, maybe non-existent.

I had a cash buyer for my last place. It was an advantage for me because we closed two weeks after going under contract, and I was able to save an additional month's mortgage payment. But it didn't change the price.

If OP got a cash offer that was really as extreme as he describes, then presumably those buyers were as unfamiliar with a cash real estate transaction in the US as he is, because there would be absolutely no reason for a seller to discount to that degree to anyone regardless of the source of the payment - assuming it was a reasonable price to begin with, I suppose.
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Old 02-07-2018, 08:55 AM
 
14,385 posts, read 20,452,244 times
Reputation: 7964
Some of you should seriously consider the controversies forum.
------------------

The buyer may be in the USA illegally. Red flag?

I want a legal contract through a real estate lawyer and I might choose to have a seller's agent.


When that type of cash buyer comes around we'll listen with open ears.
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Old 02-07-2018, 09:22 AM
 
Location: Denver CO
24,204 posts, read 19,038,282 times
Reputation: 38265
Quote:
Originally Posted by howard555 View Post
Some of you should seriously consider the controversies forum.
------------------

The buyer may be in the USA illegally. Red flag?

I want a legal contract through a real estate lawyer and I might choose to have a seller's agent.


When that type of cash buyer comes around we'll listen with open ears.
No, it's more of a red flag that you presume someone who wasn't born in the US is here illegally.
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Old 02-07-2018, 09:51 AM
 
14,385 posts, read 20,452,244 times
Reputation: 7964
If their had been 30% more based on comparables made by two different agencies we would have gone to the family real estate attorney and pursued it.
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Old 02-07-2018, 10:00 AM
 
Location: Saint John, IN
11,583 posts, read 6,672,980 times
Reputation: 14786
Quote:
Originally Posted by howard555 View Post
Some of you should seriously consider the controversies forum.
------------------

The buyer may be in the USA illegally. Red flag?

I want a legal contract through a real estate lawyer and I might choose to have a seller's agent.


When that type of cash buyer comes around we'll listen with open ears.


ANYONE CAN BUY PROPERTY IN THE USA! and if they're here legally or not has no bearing on buying a home and is none of your concern! If they give you cash for a home that IS legal no matter what their status is here. Someone can give you an offer that currently lives in France and wants a second home in the U.S., again not an issue!


Furthermore, all contracts can be reviewed by a lawyer, so again you make no sense! I think the only thing that does is the fact that you are making excuses not to sell your property.
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Old 02-07-2018, 12:04 PM
 
Location: Raleigh
13,635 posts, read 12,266,269 times
Reputation: 20048
Quote:
Originally Posted by howard555 View Post
Some of you should seriously consider the controversies forum.
------------------

The buyer may be in the USA illegally. Red flag? No, not really. Why does it matter. An illegal alien can buy all sorts of things, even real estate, and I know of nothing that says they can't buy a house.

I want a legal contract through a real estate lawyer and I might choose to have a seller's agent.
Well no $#!+ Sherlock. I don't think you realize that a "cash" home sale isn't the same as selling a used lawn mower for cash on craigslist. You typically go through the same processes as someone who has a mortgage (closed in a title office or law office depending on state custom, oftentimes the buyer still asks for an inspection/other DD but not always...

When that type of cash buyer comes around we'll listen with open ears.
Why are you concerned about their immigration status?
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Old 02-07-2018, 12:30 PM
 
14,385 posts, read 20,452,244 times
Reputation: 7964
JONOV: "You typically go through the same processes as someone who has a mortgage (closed in a title office or law office depending on state custom, oftentimes the buyer still asks for an inspection/other DD but not always)"

--------------------------

When that type buyer comes along and is not looking for a discount of 30% based on comparables already obtained, we'll listen.

Maybe the moderators needs to lock this thread since the original question was answered pages ago.

Go to the controversy forum and there are people there who are waiting there to argue anything that's on your mind.
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Old 02-07-2018, 01:01 PM
 
1,078 posts, read 929,027 times
Reputation: 2867
Quote:
Originally Posted by howard555 View Post
Some of you should seriously consider the controversies forum.
------------------

The buyer may be in the USA illegally. Red flag?

I want a legal contract through a real estate lawyer and I might choose to have a seller's agent.


When that type of cash buyer comes around we'll listen with open ears.
So you’re worried about selling to a non US resident or a non citizen? By the way that doesn’t mean they’re illegal. But okay, even if they are, why does it matter as long as you get paid for the asset sold?

You wanting to have a lawyer or seller’s agent is fine. Most cash buyers would negotiate that. We just bought a house this way not three weeks ago.

But honestly this gets stranger and stranger. You’re conflating multiple issues - cash buyers are fantastic, in general, and it’s a boon to the process. THESE buyers weren’t making a good offer and you don’t want to sell to them for other reasons that may or may not equal housing discrimination. Fine. Whatever.

What you’re not acknowledging or isn’t coming across clearly is that your issue is your buyers. Your phrased this like it was a cash buyer issue, and everyone proceeded to tell you exactly why you were barking up the wrong tree and cash buyers are preferred, or sold to at a slight discount over a mortgage buyer, or move more smoothly, quickly, whatever.

Then you proceed to tell this convoluted story about your buyers. And what it sounds like is that the cash isn’t the issue at all, but them, their offer, and how you feel about it. That’s fine - just stop conflating it with a purchasing method that is sound, reasonable, and often beats out a mortgage for the same value in a high demand market.

It’s like you can’t see that your problem and your topic aren’t the same thing. Or do you?
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Old 02-07-2018, 04:07 PM
 
Location: Athol, Idaho
2,182 posts, read 1,616,929 times
Reputation: 3219
Quote:
Originally Posted by MikeJaquish View Post
Well, we used to have to have clients sign off that they declined warranties.
There are too many stories of agents paying for a new water heater (for example) because they didn't offer to help select a home warranty, and the buyer blames them for a lapse.
Those stories are ridiculous and usually told by guest speakers at our office meetings that are selling home warranties. Are people really expecting to buy a house where nothing breaks or wears out?
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