Comments on: Ask the Broker: Is Cash Still King? http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/ Phoenix Real Estate -- Anything and everything about it. Plus random musings... Now with Phoenix area MLS Listings Search! Sat, 21 Nov 2009 05:34:24 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Darren@comparer assurance vie http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/#comment-56569 Darren@comparer assurance vie Mon, 15 Jun 2009 13:25:06 +0000 http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/1218#comment-56569 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. 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 http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/#comment-51218 Walt Wed, 15 Apr 2009 01:40:16 +0000 http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/1218#comment-51218 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. 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 http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/#comment-39948 Ned@Baltimore real estate investing Wed, 17 Sep 2008 15:57:46 +0000 http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/1218#comment-39948 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. 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 http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/#comment-39937 Bookmarks about Planning Wed, 17 Sep 2008 07:45:16 +0000 http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/1218#comment-39937 [...] - bookmarked by 5 members originally found by hsjh9201 on 2008-08-22 Ask the Broker: Is Cash Still King? http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/1218 - bookmarked by 6 [...] [...] – bookmarked by 5 members originally found by hsjh9201 on 2008-08-22 Ask the Broker: Is Cash Still King? http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/1218 – bookmarked by 6 [...]

]]> By: Bucks County Real Estate http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/#comment-39511 Bucks County Real Estate Fri, 29 Aug 2008 00:37:07 +0000 http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/1218#comment-39511 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. 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 http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/#comment-39447 Philly Real Estate Tue, 26 Aug 2008 18:36:16 +0000 http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/1218#comment-39447 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? 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 http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/#comment-39416 Tina Fountain Mon, 25 Aug 2008 16:09:13 +0000 http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/1218#comment-39416 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. 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 http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/#comment-39388 Gregory Bain Sat, 23 Aug 2008 21:34:06 +0000 http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/1218#comment-39388 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! 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 http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/#comment-39387 Mortgage Samson Sat, 23 Aug 2008 21:05:12 +0000 http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/1218#comment-39387 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... 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…

]]> By: Dave Blockhus http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/#comment-39382 Dave Blockhus Fri, 22 Aug 2008 21:13:45 +0000 http://www.phoenixrealestateguy.com/ask-the-broker-is-cash-still-king/1218#comment-39382 In Silicon Valley, their is a perception that cash is king, especially during an offer presentation. However, getting the verification that a buyer's cash is available can be worrisome. Many Silicon Valley buyers have all their "cash" tied up in stock and only sell the stock when they get a ratified contract. This can create problems if the stock value has gone down (as it has recently). Good listing agents need to make sure the cash (stock) is truely cash (in liquid form). Many buyers represent all cash (or huge down payments) in order to get into contract. Once in contract, the buyer obtains financing. This can become a problem for the seller because of the time frames involved in a buyer obtaining financing in today's market. In Silicon Valley, their is a perception that cash is king, especially during an offer presentation. However, getting the verification that a buyer’s cash is available can be worrisome. Many Silicon Valley buyers have all their “cash” tied up in stock and only sell the stock when they get a ratified contract. This can create problems if the stock value has gone down (as it has recently). Good listing agents need to make sure the cash (stock) is truely cash (in liquid form).

Many buyers represent all cash (or huge down payments) in order to get into contract. Once in contract, the buyer obtains financing. This can become a problem for the seller because of the time frames involved in a buyer obtaining financing in today’s market.

]]>