Investor · FL · Member since 2020 · 179 posts · 54 votes
Hello,
Does putting in an offer for cash offer but with a home sale contingency Carey more weight than offer with mortgage (20% down) with also home sale contingency?
I would assume yes as there is no doubt about having to qualify for the loan once the contingent home gets sold?
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
5y
The standard on hot (= updated, looks like HGTV) residential deals in Milwaukee is now pretty much 10% over asking, no inspection, no or limited appraisal, financing only conventional. Additional perks: high EM, post closing occupancy. One of my agents worked on one last week with 36 offers. 5-10 offers is normal. That makes for a lot of disappointed buyers who are going to try a little harder on the next one! If anyone wants to see the data go on my YouTube channel on my bigger pockets profile page!
And before someone slams me here for being a typical agent not looking out for my clients: I am also an active investor and just bought two properties of the MLS last month; it sucks, I know the feeling and I don't enjoy this either!!
Rental Property Investor · Surprise, AZ · Member since 2020 · 405 posts · 179 votes
5y
@Chris Klingemann
It would be a little better but not much if you are competing with offers. Lots of buyers right now in my market (Wisconsin) are not using the home sale contingency.
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
5y
The standard on hot (= updated, looks like HGTV) residential deals in Milwaukee is now pretty much 10% over asking, no inspection, no or limited appraisal, financing only conventional. Additional perks: high EM, post closing occupancy. One of my agents worked on one last week with 36 offers. 5-10 offers is normal. That makes for a lot of disappointed buyers who are going to try a little harder on the next one! If anyone wants to see the data go on my YouTube channel on my bigger pockets profile page!
And before someone slams me here for being a typical agent not looking out for my clients: I am also an active investor and just bought two properties of the MLS last month; it sucks, I know the feeling and I don't enjoy this either!!
Real Estate Agent · Goodyear, AZ · Member since 2021 · 11 posts · 3 votes
5y
Like Cody said, being a cash buyer initially sounds good, but having a contingency will knock you down a tier or two. In the Arizona market right now, you will have to be over asking to stand out with a contingency.
Real Estate Broker · Madison, WI · Member since 2015 · 118 posts · 60 votes
5y
You can always try, but as stated, the sellers interest and response will all depend of they have offers with better options. I think if you can get financing to buy while holding the property you want to sell, a seller may actually view that as less risky on their side of the table. I feel in a competitive market, a solid financing contingency (pre approved, conventional, 20% down, maybe say you'll pay some gap if appraisal comes in low are all in play in the Madison, WI market) would be better received than a home sale contingency. With the home sale you never know for sure until closing (buyer may lose a job, etc. I've had very few sales fall apart the day before closing before and retaining earnest money usually isn't much comfort to a seller in those cases). You can still try to sell your home once the Offer is accepted on financing and if the timing works out, buy with all cash. However, with the current low rates, you may decide to stick with 20% down and invest your cash in more investments.