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Is making a cash offer negative for you as a buyer in anyway? Does it show your cards too much? Do you think it will make a seller try to get you to pay more?
Is making a cash offer negative for you as a buyer in anyway? Does it show your cards too much? Do you think it will make a seller try to get you to pay more?
Maybe...? Maybe...? Maybe...?
NO. No negatives to a cash offer, other than the fact that money is so cheap to borrow right now, why tie up cash?
We are in the sweet spot for home loans right now, IMO..
But, if an unencumbered deed, no monthly payment, or poor credit are motivators, "Cash is King."
Any negatives to buying a house in cash? Re purchase price, seller's view of a cash offer
Is making a cash offer negative for you as a buyer in anyway? Does it show your cards too much? Do you think it will make a seller try to get you to pay more? Do you send the message that you are loaded and therefore for sure will be counter offered with a higher # than if you were attaining a mortgage?
Is making a cash offer negative for you as a buyer in anyway? Does it show your cards too much? Do you think it will make a seller try to get you to pay more?
No actually cash offers tend to be stronger offers. Lending is really difficult right now and cash is essentially a done deal. It isn't negative in any way.
No actually cash offers tend to be stronger offers. Lending is really difficult right now and cash is essentially a done deal. It isn't negative in any way.
Thank you. Do you think I have any leverage with my cash offer? Should I bid a bit less than I am actually willing to pay based on this?
It's a hot market and area where we are, even despite the slow economy. What weight do you really think my cash offer might hold and what are the odds on a cash offer STILL being counter offered? Seller is ready to leave, already purchased another house.
For ex, if the asking price of the home is $299, and I believe it can sell for about 265-290, what cash bid might I start with (assume I am willing to go up to 299)?
Cash talks.
You can make a lower offer b/c --- you have cash. It's the best type of offer there is!
That said there are a few things to look out for - for yourself!
Remember there is no lender looking over your shoulder - you are on your own, so look out for yourself. There is no lender to require you to have insurance ... you will need to speak to your insurance agent, yourself. Be sure you know the cost and have the insurance in place AT CLOSING. Remember, you will need to keep the insurance paid. The same will be said for the property taxes - you will need to pay them yourself.
Assuming your are using a closing company who will insure clear title and that taxes are prorated to closing. - Ask your real estate broker to go over all the closing numbers with you in detail.
You will have no lender to require an appraisal or inspection on the property. You should inspect the property via home inspector, vendors (roofer, HVAC, etc) or both. You don't need an appraisal unless you are uncertain of the value of the property. Your cash offer may still be subject to appraisal and/or inspection. In my view it should be subject to inspection without question.
There is no offer better than cash - that's for sure. However, be sure you understand that the taxes and insurance must be paid - by you! - never let them lapse.
Best wishes!
Thank you. Do you think I have any leverage with my cash offer? Should I bid a bit less than I am actually willing to pay based on this?
It's a hot market and area where we are, even despite the slow economy. What weight do you really think my cash offer might hold and what are the odds on a cash offer STILL being counter offered? Seller is ready to leave, already purchased another house.
For ex, if the asking price of the home is $299, and I believe it can sell for about 265-290, what cash bid might I start with (assume I am willing to go up to 299)?
Why don't you ask your agent? I can't advise you on what an appropriate offer is for your hot market. You can make an offer too low and make a seller angry to the point where they won't negotiate with you. What you depends on many things.
Cash talks.
You can make a lower offer b/c --- you have cash. It's the best type of offer there is!
That said there are a few things to look out for - for yourself!
Remember there is no lender looking over your shoulder - you are on your own, so look out for yourself. There is no lender to require you to have insurance ... you will need to speak to your insurance agent, yourself. Be sure you know the cost and have the insurance in place AT CLOSING. Remember, you will need to keep the insurance paid. The same will be said for the property taxes - you will need to pay them yourself.
Assuming your are using a closing company who will insure clear title and that taxes are prorated to closing. - Ask your real estate broker to go over all the closing numbers with you in detail.
You will have no lender to require an appraisal or inspection on the property. You should inspect the property via home inspector, vendors (roofer, HVAC, etc) or both. You don't need an appraisal unless you are uncertain of the value of the property. Your cash offer may still be subject to appraisal and/or inspection. In my view it should be subject to inspection without question.
There is no offer better than cash - that's for sure. However, be sure you understand that the taxes and insurance must be paid - by you! - never let them lapse.
Best wishes!
Thank you! This was my concern.We don't have a broker, only going through a seller's broker. Would my attorney be the person to ask these questions to? Do you think it's wise to speak to the attorney before making the offer?
I know I have to get home insurance and I would only want to close WITH insurance. If I have a hard time getting insurance, can I be forced to close without it even though I want it before I close? I would not want to own that house even ONE day without insurance on it.
Also..would it be wise to get an appraisal anyway? Why or why not?
Inspection goes without saying. For sure, we very well know about that. And we do realize we would have to pay our house insurance each year as well as property taxes, but thank you for reminding me of these negatives.
Personally for me it wouldn't. The one and only impact it would have would be that as a seller I didn't have to deal with a mortgage contingency and that is a good thing.
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No negatives in my book!
Any negatives to buying a house in cash? Re purchase price, seller's view of a cash offer
