Expert: Hans Weber, Licensed Broker Associate - 10/5/2011

Question
Hi, I'm thinking about buying a home all in cash. I was told that by paying in cash, I can get the property at a lower price because it is more beneficial for the seller. If so, in your experience, typically how much lower can you get from listing price? thanks

Answer
Hi Jackie,

Thank you for your question.

Paying in cash saves you money in closing costs, at least 5% in fees and charges from a lender.  If you need money after buying you can always get an equity loan with hardly any closing costs.

As far as a seller accepting a lower price for cash, that would depend on the market and the motivation of the seller.  In the current market with banks preferring not to make mortgage loans a cash buyer is in a stronger position than a buyer getting a mortgage and sellers would be more likely to negotiate with you.  

Is there a specific percentage number that can be saved paying cash?  I would say no.  It all depends on the market and the parties involved.  Some sellers charge ahead for any extra penny they can get regardless of the qualifications of the offer.  Others may well take a cash offer lower than an offer with a mortgage if they have two or more offers at the same time.

Usually a cash offer can close faster too...

Hans