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Say for instance a property is owned by a bank and they are asking 220K. If I offer 200K cash would they give it to me versus a guy who is putting 20% down and offering 210K?
As N4S said, it shows you are wiling and able to close with no mortgage hitch and if you agree to a cash only sale, they can take your earnest money if you decide to seek a mortgage.
No because a cash only sale offer is still just an offer that has to go through the process and some person at the bank with a calculator may be willing to accept the higher offer even if it means they have to wait 30 or 60 days for closing.
Banks want to see cash heavy deals, no contingencies and waiving inspections. That does not mean you cant bring someone along while you "view" the property to do an inspection, but the homes are generally being sold as is anyway and an inspection is not beneficial to closing the deal.
In a previous offer a friend offered a few thousand more than I did, with a 3% down payment. I was putting 20% down and waived inspections.
I have been the chosen contract out of 5-7 other offers on my last 2 deals.
Banks want to see cash heavy deals, no contingencies and waiving inspections. That does not mean you cant bring someone along while you "view" the property to do an inspection, but the homes are generally being sold as is anyway and an inspection is not beneficial to closing the deal.
In a previous offer a friend offered a few thousand more than I did, with a 3% down payment. I was putting 20% down and waived inspections.
I have been the chosen contract out of 5-7 other offers on my last 2 deals.
Agreed. Remove the mortgage and inspection contingencies.. seller will love those. Request quick closing on an empty house.. even more leverage.
As N4S said, it shows you are wiling and able to close with no mortgage hitch and if you agree to a cash only sale, they can take your earnest money if you decide to seek a mortgage.
This isn't true.
If you make an offer, and agree to a contract, that calls for the purchase to be all cash, you are still free to seek a mortgage loan. You can even get the mortgage loan and purchase the property using that money.
What you cannot do is make the purchase contingent on getting that loan, or hold up the closing if your loan doesn't get approved. An all cash offer means that there is no mortgage contingency. On the day of closing, so long as you deliver the funds, no one will really care from where those funds originated.
Say for instance a property is owned by a bank and they are asking 220K. If I offer 200K cash would they give it to me versus a guy who is putting 20% down and offering 210K?
Would they give it to you in that specific instance? Possibly, but none of us have any way to know that for sure. The bank wants as much for the property as possible, but they also prefer less risk. It would depend on the circumstances specific to that property, that bank, that asset manager, and those buyers.
Agreed. Remove the mortgage and inspection contingencies.. seller will love those. Request quick closing on an empty house.. even more leverage.
Generally the banks hold up the closings. So you can offer quick closing on your end, but be prepared for the bank to delay. I did the last deal as cash and it was still two weeks delayed.
I have a friend that has been working on getting one to close since February. His is a cash deal also.
This isn't true.
If you make an offer, and agree to a contract, that calls for the purchase to be all cash, you are still free to seek a mortgage loan. You can even get the mortgage loan and purchase the property using that money.
What you cannot do is make the purchase contingent on getting that loan, or hold up the closing if your loan doesn't get approved. An all cash offer means that there is no mortgage contingency. On the day of closing, so long as you deliver the funds, no one will really care from where those funds originated.
Even with a cash deal, they very much still want to know how the funds originated.
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