Familiar with the expression, “Cash is King”? Over the past few years in most markets with so many distressed properties available, the cash buyer has been able to greatly capitilize on purchasing homes for reduced prices in comparison to other like-properties on the market. office fitout We have experienced an enormous amount of cash buyers in the Palm Springs market, and even though being a cash buyer does give an advantage, the price savings aren’t as large as they were 6-18 months previously we are seeing in many areas. Why? Because banks are taking more financed offers that will enable them to net more profit than taking a lower cash offer- and they are tired of being “lowballed”.
Here are some tips for being a cash buyer in a highest and best offer situation for your home purchase:
1) Have your agent verify how many other cash buyers are offering on the property. If there are no others, then discuss with your agent what your best offer should be based on your advantage of not needing financing. home extensions Melbourne If there is another cash buyer or more, realize that you may not get the discount you were hoping to achieve; you have to beat those other cash buyers, so make sure this property investment is well worth it, espcecially in moneys needed after closing to personalize or rehabbing it.
2) If buying a fixer cash have a home inspection done, an estimate done for repairs, and try to earn instant equity for your efforts if possible. Sellers know that choosing a financed offer can be a risk with a fixer, as most lenders will want to make sure the home is up to code in many areas, especially with a FHA loan where repairs will need to be made and paid for most times by the seller before closing. A cash buyer in a highest and best offer situation on a fixer has a big advantage- just make sure the property is worth it investment-wise and that the offer isn’t too low where the seller gets turned off.
3) If possible, have your agent request to close within 21 days on your offer for bank-owned or traditional-sale home
If it is a bank-owned home, the bank would like it off their books so they will like to see a cash buyer ready to close quickly if the offer is high enough for them. flood restoration Brisbane Short-Sale transactions should always put a minimum of 30-45 days upon acceptance because the bank is still working with the current homeowner and delays will inevitably occur. In a traditional-sale, where the home owner is not in default with their bank, the seller may like to close that soon of course, but your agent should ask the listing agent how quickly the seller would like to close before putting on an offer.
4) Still ask for a home warranty, all transfer taxes/fees, pest inspection, costly repairs, or any other requests within reason
Many times the listing agent will say the bank or the seller won’t pay for one or some of these requests, but I have seen many times the seller decides to pay- especially when there is a good cash offer with a shorter closing date. Remember, the listing agent doesn’t make the decision; the seller makes the decision and sometimes they don’t want to rock the boat with a buyer. Now your requests can be countered or rejected outright, but you never know until you try.