Short sale with requirement of an all cash offer ?

2 Replies

I put in an offer on a property for 450k and the comps say at least 600 and up for similar properties . But , the agent wants all cash offers only for a short sale !? Why would an all cash offer matter for short sales ?

Also , I had to put my offer in blind because the property has tenants and the offer had to be put in , in order to even see it . .. ?

Anyone have any reason behind this from the listing side ?

Originally posted by @Alex Ko :

I put in an offer on a property for 450k and the comps say at least 600 and up for similar properties . But , the agent wants all cash offers only for a short sale !? Why would an all cash offer matter for short sales ?

Also , I had to put my offer in blind because the property has tenants and the offer had to be put in , in order to even see it . .. ?

Anyone have any reason behind this from the listing side ?

What that means is that at closing the offer must be made complete. That is, they won't do any carry backs or owner financing. So, if you have hard money, or a bank loan that will close and pay in it's entirety it shouldn't matter. They don't care where the money comes from (except drug money etc naturally) they just want the full amount at closing. No funky FHA, VA or USDA loans which require inspections, appraisals and conditions.

Originally posted by @Alex Ko :

I put in an offer on a property for 450k and the comps say at least 600 and up for similar properties . But , the agent wants all cash offers only for a short sale !? Why would an all cash offer matter for short sales ?

Also , I had to put my offer in blind because the property has tenants and the offer had to be put in , in order to even see it . .. ?

Anyone have any reason behind this from the listing side ?

They know something you don't, but their requirement stated by the agent tells you what you need to know...that the property is not financeable traditionally. That means usually, there is deferred maintenance, damage, or some non conforming component and they don't want their time wasted (or your time wasted) trying to get financing on something no one is going to finance without repairs/upgrades/maintenance, etc..

I require all cash offers commonly if I have something I know no one can finance or, when I know i'm not paying for repairs. VA is notorious for sticking every nail and screw they can to the lender and I just usually reject offers with contingent financing. That said, if I have had it on the market and don't have any buyers interested, I might entertain an offer, knowing it's not gonna go through.

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