Heya! Me and my Partner have just started looking at home over the last couple of weeks. We've been saving for a long time and are wanting to buy a home with cash. Additionally, we live in Tennessee.
In terms of home prices, is there any more flexibility you can negotiate on the price when buying with cash vs financing?
Buying a Home with Cash. What kind of flexibility does this offer?
by inRealEstate
Posted by Hotkees
12 Comments
If you offer same price, cash is better. But it won’t help if your price is way lower than others
Depends on what the seller cares about. The benefit of cash is a fast closing. How much is a fast closing worth to a seller. For some it’s worth nothing for others it’s worth a lot
Cash means one less contingency but if the other buyers are willing to give up the same contingency your offers are virtually the same unless the seller needs to close very quickly. Cash is way less valuable than most people think because the banks money spends just as well as your cash.
The biggest advantage of cash vs someone that is preapproved is the speed you can move at. You can do a closing much faster, inspections and title work only take a few days.
On a new home a builder can offer a cash buyer a significantly lower price by rebating 10’s of thousands of dollars back to you in escrow. Lenders will not allow this. This is good for the builder that is trying to move inventory because it maintains the higher price of the house sale for comps. The downside to the buyer is slightly higher property taxes but having that cash to invest elsewhere more than makes up for the tax.
Your buyers agent should be able to explain this and the local market to you.
When i sold my home i wanted the most money but least friction. Any buyer who communicated respect & order was the one that went to the front of the line bc that is the person i want to be in contract with.
Does cash always mean no mortgage loan. I mean if they get the cash in a week or two weeks it’s still going to be a check with a banks name on it
Doubt it. Last house we put up for sale had 5 offers on the first monday and 4 were cash.
Cash = minimal repair requests. You should do an inspection for informational purposes only if you want your cash offer to be better than financed.
I wouldn’t care as a seller where the money I get comes from.
Doesn’t matter to a seller if the check at closing comes from a bank or the buyer. Assuming everything is fine with appraisal