Updated about 6 years ago on . Most recent reply
"Cash Offers Only" (ugh)
Money is money - whats the seller appeal to cash over lender funds? Would a seller be enticed to sell to a non-cash buyer with a SLIGHTLY higher offer and pre-approval letter?
I've analyzed several MFHs that make for awesome deals. However in each of these deals, there's three little words hidden in the description - "cash offers only" that completely derail any momentum in securing the property. (I'm not in the position (yet) to purchase MFH with cash.)
I have been the recipient of a cash offer before and the only benefit I can remember is a faster closing timeline. But..I couldn't have cared less where the funds came from as long as the correct amount was liquidated.
Lastly, each of the properties I've analyzed have been on MLS for atleast 90 days - double the average closing timeframe. Wouldn't this be incentive for a 'cash only seller' to accept full offer amount in the form of a pre-approval?
Most Popular Reply
#3 1031 Exchanges Contributor
- Investor
- Las Vegas, NV
Put up a $20,000 non-refundable earnest deposit. They’ll probably take your offer.
The reasons are usually as simple as it won’t appraise, there’s a reason a loan would be denied, or the seller is sick of “pre-approved buyers” being turned down for their loan. How many 45-60 day “pending sales” of your property would you go through? What if you needed the money to close on your dream property, or pay off a hard money loan?