Cash Buyers (1%, negotiating, agent, mortgage)

[Lizzie007]

We have had our house on the market for only one month and have had a ton of showings. We got our first offer yesterday and the buyer doesn't even need a mortgage. He would pay in cash. Obviously, it seems like a dream in today's market but he offered 10 percent off our asking price which is just too low for the value of our house. We had already listed it at slightly below market to factor in the housing downturn. Anyway, my question is how much would you accept less than your asking price knowing that it was a cash buyer? Seems like a lot of stress would be relieved through the process. Also, factor in that we've only been on the market for a month, we don't really have to move until September (house being built) and we've had 25 showings in a month.

Thanks

[bentlebee]

Doesn't it all depend on how much you want to accept for your home and if you think you will find another buyer in todays market. Many mortgage brokers don't even write mortgages anymore (example First Franklin stopped completely), so the changes on having a buyer who is able to obtain a mortgage in todays mortgage market, is getting slimmer and harder.

[Captain Bill]

Originally Posted by Lizzie007

We have had our house on the market for only one month and have had a ton of showings. We got our first offer yesterday and the buyer doesn't even need a mortgage. He would pay in cash. Obviously, it seems like a dream in today's market but he offered 10 percent off our asking price which is just too low for the value of our house. We had already listed it at slightly below market to factor in the housing downturn. Anyway, my question is how much would you accept less than your asking price knowing that it was a cash buyer? Seems like a lot of stress would be relieved through the process. Also, factor in that we've only been on the market for a month, we don't really have to move until September (house being built) and we've had 25 showings in a month.

Thanks

The offer is the beginning of the negotiation. Discuss this with your realtor and develop a counter offer strategy. The buyer has made you a reasonable offer, and is probably willing to negotiate higher.

If you think 5% below list is acceptable, then you can counter with perhaps 1% less, to get the buyer to come up, and eventually meet in the middle. Have your realtor gather the new comps and ask him/her to meet personally with the buyer and the buyers agent (not just fax the counter offer over) and discuss the comps and explain the counter offer and the reason that the home is worth what you are countering with.

In negotiating you realtor should explain to the buyer and buyers agent that your home is getting action and while you're certainly willing to negotiate with this buyer, you feel that you will be getting another offer soon.

You've had a good showing response and one offer out of 25 showings is very good in this market.

But remember, that with a cash buyer, you do not have to worry about having financing issues with a buyer. The chances of a quick clean close are better. So weigh the cost of carrying your home for a few more months and you may find that it's worth selling for a little less to a cash buyer than it is to wait for another offer.