Is Cash Really King?

by jmaranto

Is cash really king? Not necessarily.  When evaluating offers a seller is going to look at the total package – What is the bottom line you are going to net from the sale?, What is the likelihood that financing will fall through?, What inspections is the buyer asking for, Is the offer contingent on the sale of a buyer’s home, etc.

Cash doesn’t always give you the leverage you think it does.

Many buyers think that cash offers give them the upper hand.  In some instances, yes, it does. But if the offer is not right, a strong offer from a well qualified client requiring financing will do just fine.  The Seller’s Realtor just has to have a frank discussion with the buyer’s lender to make certain that they have delved into the buyer’s background more than just having a phone conversation. Did they run their credit? Have they looked at their tax returns and pay stubs? Do they have sufficient cash assets or are their getting a gift?, etc.  A seller will not simply take a buyer’s offer just because it is cash, unless it is within market tolerances.

Best advice. Make your offer as competitive as you can relative to the situation.  If you are in a competitive bid, then make it as strong as you can, realizing that if you are not the winning bidder, that you can sleep at night knowing that you gave it your best shot.

Published on 2015-07-18 06:57:41