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I am not a realtor, but I am a seller who sold to a cash buyer and I am a buyer who is purchasing a home with cash. As a seller, I accepted a lower offer b/c the buyers had cash. As a buyer, I have builders really, really, really trying to build my home b/c I don't have to finance. As one builder told me, he lost 6 sales b/c the buyers could not get the loan.
Paying cash does not lower the commission. The seller and Realtor already have a contract signed for the commission amount. Cash does affect the offer. If you have cash and someone bids higher than you with financing you may take it. If you both bid the same you definitely take it. A seller may be willing to take an offer that they would not normally take because you are paying cash. Cash is King.
The comments from the buyers on this thread seem to indicate that there are at least some people that will respond postively to a "cash offer". The reality, however, is that THERE IS NO DIFFERENCE to well informed sellers whether there a lender involved or not.
While the OP is correct that without a lender the BUYER does not need to have their credit verified, the SELLER would be remiss to accept a reduced amount simply because of a cash offer and could result in significant difficulty if the source of the funds is not verified and proper title transfer procedures are not followed. This is not as easy as signing over the title of a 1986 Chevy, houses are typically an individual's largest purchase ever...
A bird in the hand is worth 2 in the bush. Cash offers are stronger than offers contingent on financing if both are offering the same amount. Even if the cash offer is less, I would be more likely to accept less because I know how many deals are falling apart because of lender issues.
A financing contingency for that well qualified pre-approved buyers is not something that sellers should worry about.
If the seller is willing to take $ttt,hto for their property all cash they should be willing to take that at close of approved lender deal, or else they should not list their home for sale...
7 years ago, before I became a real estate agent, I sold my house to a cash buyer, in a multiple bid situation, where the two best and final offers were the same. My agent and I verified that the cash was in a money market account and stipulated, within the contract, it would remain there, until closing. In other words, I favored the cash buyer over the one that needed financing.
Cash buyer guy did not get a better deal but did get the house he wanted.
Agents get paid when a ready, willing and able buyer comes to the closing table and does what he says he will do. The source of funding is not relevent.
In this market, some sellers might be inclined to give more on price in exchange for the increased certainty of closing.
It eliminates about half of the criminal element of the transaction.
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