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Buying or Selling a Home/Paying in cash
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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
Hey, Jackie.
It's not necessarily more beneficial for the seller because it doesn't matter whether you bring all cash or you finance. When the transaction closes, the seller gets all cash.
The only thing that having all cash does is let you close earlier because there isn't so much documentation required by the finance company since there isn't a finance company.
Closing earlier could be beneficial to the Seller because he might have monthly holding costs, like his own mortgage payment, insurance, utilities, etc.
On the other hand, if the Seller had a good agent who did appropriate comps for selling the property, then the listing price is what the Seller is wanting. Some Sellers, especially those who don't have to sell but simply want to sell for whatever reason, are willing to wait for the Buyer's financing in order to get the right price.
If you make it a great all-cash offer and include short contingencies, like for your home inspection, you might be able to get a lower price, but it's all hit and miss. Just depends on the seller, the seller's agent, and what other prospective buyers are making offers.
There are areas here in San Diego where all cash doesn't make a bit of difference. Those areas usually have location, location, location... view of golf courses, views of mountains and rivers, views of the ocean, etc.
The best thing you could do is get yourself a good real estate agent who can run comps for you to see if the value of the home has risen or fallen since it was listed.
Hope that helps.
Russel
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Russel Ray
Expertise
Through home inspections, I provide an education about real estate. I'm one of those rare home inspectors who has been involved in real estate in many different capacities: as a Realtor (in Texas), as a property investor/flipper, as a teacher, and as a marketing expert (for Realtors and home inspectors). I believe that my experience as a Realtor and property investor provides me with a different viewpoint about home inspections in that I work for my Clients, but when there are other people involved in helping my Clients, then I firmly believe in helping them, too. That includes Realtors (both the seller's and the buyer's), repair professionals (e.g., plumbers, electricians, etc.). If I can get all the players (seller, seller's Realtor, buyer, buyer's Realtor, and repair professionals) playing in the same sandbox together to accomplish goals as a TEAM (Together Everyone Accomplishes More), then I believe I have succeeded in my job as a home inspector. My profession is, in my opinion, much more than simply documenting the condition of a property and then take the money and run. I am also a rare breed in that I don't believe that one inspection fits the needs of all Clients, and I have led the industry in understanding that fact. For example, the goals of a property investor are far different than the goals of someone buying a property to live in. The goals of a seller (a pre-listing inspection) are far different than the goals of a buyer (a pre-purchase inspection). To that end, I offer 14 different types of inspections, e.g., STANDARD, LIST, RENTER, BASIC, MAINTENANCE, SPOT, and more. I believe in giving the benefit of the doubt to all professionals in whatever industry they represent until they prove me wrong.
Experience
Over 42 years in all aspects of real estate--building homes, renovating homes, inspecting homes, Realtor.
Organizations
National Association of Certified Home Inspector, Better Business Bureau of San Diego
Education/Credentials
Graduate of Texas A&M University; College Station, Texas
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