Well, it's always a gamble. I pay cash for houses (not that expensive!) and I will tell you that I make very low offers, and I expect to get the house for those amounts because I am assuring you a deal with no appraisal or financing contingency. So it is in the seller's court how bad they want to sell the house. I have missed some where they wanted more money and were willing to chance the financing side of things, and I have walked from some where they didn't want to pay up, and then they came back later offering the house for less than what I was willing to pay but I had already moved on to other deals.
Financing and appraisals sink *a lot* of deals. Someone who can just write a check is going to have an advantage on someone who needs the bank to play along.
Around here it is usual to see properties bought for 5 to 10% under listed price, is `appraised` price close to listed price?
Also, you need to consider time on market/holding costs and the joys (delays/inspections/fixes needed) for buyers with FHA loans.
That being said, I don't think a cash offer precludes some negotiations.
I was closing on a property today and was chatting with our Realtor afterwards and she was talking about a closing she has coming up on Monday that has been a nightmare. The closing was extended 4 times due to complications with the financing (even though the buyer was pre-approved)
So I agree that a cash buyer has some advantage, especially if time is of essence. I make cash offers and hear "no" quite often but I just move on to the next one.
In reality, the "all cash" closing I attended today had been extended three or four times too (I lost count) but that was due to govt. ineptness.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing