Comments on: Ask the Broker: Is Cash Still King?

By: Dan@San Diego Home Finder

Dan@San Diego Home Finder — Fri, 19 Feb 2010 16:29:12 +0000

Well I can say from very recent experience that I just had a client take an offer that was to be funded with a VA loan over a lower cash offer. The big worry here was actually the appraisal. My client had done a lot of work to the unit and made it by far the best in the complex but we did not know if the appraiser would see that. Fortunately he did and the deal is now closed. Really there is not answer to this question that will work across the board and there are other factors to consider.

By: Darren@comparer assurance vie

Darren@comparer assurance vie — Mon, 15 Jun 2009 13:25:06 +0000

I don’t get it. Whether it’s from your pocket, or from somewhere else, it’s still cash, isn’t it? You still have to pay for it in the end.

By: Walt

Walt — Wed, 15 Apr 2009 01:40:16 +0000

Cash is Cash… Financed transactions are not cash, they are financed transactions. Financed transactions can close on time, but any underwriter can blow the deal because lets say the spouse charged too much on her credit card too often and then the underwriter asks the buyer to put down a little more, so they now cannot do so and teh offer folds. Speaking of Cash, boy now you have to fill out forms to send to the IRS, otherwise the Patriot act kicks in.

By: Ned@Baltimore real estate investing

Ned@Baltimore real estate investing — Wed, 17 Sep 2008 15:57:46 +0000

As Tax Lien Investing said, as far as the seller is concerned financng and cash are the same. The seller walks away with cash either way.

Real estate investors are often told to say “I can offer all cash and close quickly” but is that important to the seller? To most sellers this just isn’t improtant for the reason above.

However to some truly motivated sellers, speed and the assurance that the deal goes through are more important than top price. In that case all cash or a very large down payment can be important to them.

By: Bookmarks about Planning

Bookmarks about Planning — Wed, 17 Sep 2008 07:45:16 +0000

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By: Bucks County Real Estate

Bucks County Real Estate — Fri, 29 Aug 2008 00:37:07 +0000

Jay,
I will have to agree with you that if the seller has multiple offers and one of them is a cash sale, the sellers will probably choose the cash offer as it eliminates a huge contingency from the transaction.

Great post.

By: Philly Real Estate

Philly Real Estate — Tue, 26 Aug 2008 18:36:16 +0000

I don’t know about you, but I can sell the house, I can negotiate repairs and addendum BUT I never know what the mortgage company is going to come up with anymore. It seems like every day a new requirement needs to be met. Cash is becoming king but who has any?

By: Tina Fountain

Tina Fountain — Mon, 25 Aug 2008 16:09:13 +0000

Jay – I recently had a seller prove that cash is not always king. We had two similar offers, one cash and the other with financing through a national lender and solid as a rock. The cash offer came with a bank letter from another country. Bottom line – we felt the offer with financing overall was the best and ended up closing without a hitch. The agent with the all-cash buyer was shocked that we took the other offer, and last I heard they had not purchased another home.

By: Gregory Bain

Gregory Bain — Sat, 23 Aug 2008 21:34:06 +0000

Wouldn’t it depend on the terms of the offer? A quilified buyer is a quilified buyer – cash or mortgage. Certain things can make the cash guy king, like no inspections, no appraisal, no survey, no title insurance. I haven’t met any would be buyers willing to accept that kind of an arrangement. And, for most of the sellers – they know the appraisal will work and the inspections won’t reveal much, if anything. Of course, we all get surprises. That’s what makes life exciting!

By: Mortgage Samson

Mortgage Samson — Sat, 23 Aug 2008 21:05:12 +0000

I can tell that you have obviously had success with the mortgage companies you have worked with in the past as far as them coming though for you.

Now, if a seller had four contracts fall through because of financing turn downs, then…