Typical discount for paying cash

8 Replies

Hi all,

Quick question/poll on how much of a discount you can expect to receive by placing a cash offer? Is it fair to expect 10% off? More or less?

Curious what others have seen.


@Eric Hart I wouldn't get your hopes up. In general, having a cash offer alone gets you a little bit of negotiating power but not a huge discount. There's lots of cash buyers out there.

RE is local though, and it depends on the deal.

Would you sell your own house for 10% less just because its cash instead of waiting a mere 4 weeks for a loan to close?

Making cash offers helps you move fast, which is helpful to actually get the deal. I'm most situations it's not going to make or break the deal or get you any sort of discount.

Some properties aren't eligible for traditional financing... So in order to get those deals you'd need to be able to do cash offers.

When doing A BRRRR, it's nice to buy with cash so then you only need to pay closing costs for one mortgage. If you buy with a mortgage and then refinance to another mortgage later on... Paying closing costs on two mortgages can be expensive.

It's not that having the cash and making cash offers isn't beneficial; it definitely is. It just doesn't generally get you more of a discount.

I expect to pay at least 20 Percent less and usually do .

The houses I buy are not mortgageable. .  . 

Personally, I think it depends on how hot the market is. In a colder market a cash offer is going to be more coveted than in a hot market. Also, condition matters, as Marci above alluded to. If a property needs work a cash offer will be more of a factor than if a house is nice.

No guarantee on a discount for paying cash. It really depends on lots of different factors, DOM, market, price range, seller situation, competition, condition of the property.  Sometimes in a very hot market getting the deal is the win. Thats what your cash offer got you.