Making Cash Offer

7 Replies

I have never flipped a property but will like to venture out that route, I am just not clear on how the cash offer is structured as far as who makes the offer? Is it an Agent and if so what is the fee you pay the agent for writing a cash offer for you and it is accepted?

Does the Agent make no money writing the cash offer but make the commission at the time you are ready to put the property on the market for Agent to sale?

Thank you in advance for sharing your knowledge,

Rico

You approach a seller, you say I will give you $....... cash for your houses. They take it or leave it. If they take it , you get a closing agent to do the paperwork< or your attorney. You trade the cash for a deed.

Simple. No RE agent needed.

The seller is responsible for paying all the commissions, both to his agent (the listing agent) and to your agent (the buyer's agent).  Commissions are paid at the time the property closes.

If you've never offered on a property before, I highly recommend using an agent to represent you.

@Rico O. you would use a realtor if the property is listed on MLS (listed by a realtor - has an agency sign in the yard.) When a property is represented by an agent, the agent has already agreed with the seller on a commission which comes when the house is closed. You do NOT pay the commission outside of closing. Even though, technically, your $ is how they are paid by the seller.

If an agent is not representing the property, you can make a cash offer personally. If you choose to purchase a For Sale by Owner property, you can pay a realtor to help you negotiate/navigate the deal. I don't encourage it. 

Your question reads as though you are a new investor. I encourage you to browse the podcasts. Even better, start on #1 & keep listening.

Browse the forums. Look below the last reply & you'll see related discussions.

Please, continue learning & educating yourself.

Thank you every one for the advice. I am new and will continue to sharpen my skills to make sure I make educated decisions when the right time comes.

Again Thank you,

Rico

If the house isn't represented by an agent then you would make an offer directly to the homeowner.  You really don't need to pay an agent to fill out the paperwork the title company does most of it anyway....  at least in PA

Thank you Greg,

I was under the impression that any offer would be presented with a contract along with specifi contingencies. I don't have or know how to fill out the contract offer document so I thought I had to pay some one to write out the contract and pay a fee to do so. 

So if I have this right, an agent would do me the favor to write the contract with out a fee since the property is from the MLS listings? In return I can have her sale the property at the time for resale if the offer and contingencies meet all expectations?

If the offer was cash how do I make a formal cash offer, is there a document I need from an attorney to do this?

Thank you for your responce and feed back...

Originally posted by @Rico O. :

Thank you Greg,

I was under the impression that any offer would be presented with a contract along with specifi contingencies. I don't have or know how to fill out the contract offer document so I thought I had to pay some one to write out the contract and pay a fee to do so. 

So if I have this right, an agent would do me the favor to write the contract with out a fee since the property is from the MLS listings? In return I can have her sale the property at the time for resale if the offer and contingencies meet all expectations?

If the offer was cash how do I make a formal cash offer, is there a document I need from an attorney to do this?

Thank you for your responce and feed back...

Rico - Have you considered taking a real estate licensing course?  Even if you don't want to get your license, I think you'd get a lot out of the course when it comes to how a typical transaction works, who the major players are, what a contract looks like, etc.

I think you're missing some very basic background information about how the purchase and sale of properties work, and that could get in the way of actually making offers.

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