Right now I’m working with a cash buyer, meaning they do not have to get a loan to purchase a home. Often times cash buyers ask “can I negotiate more since I’m paying cash?” Here is what I tell them:
Advice for Cash Buyers
Being a cash buyer is great because you don’t have to wait the usual time for a mortgage loan. You can usually close within 2-3 weeks instead of the typical 45 days which loans take to accomplish. So your “power” or leverage is that you can close quicker than most.
But being a cash buyer DOES NOT make you more valuable from a money standpoint. At closing the seller gets paid no matter what, whether you are financing your purchase or bringing cash to the table. They do not get paid more if you pay cash.
Why I Like Working with Cash Buyers
From my perspective a cash buyer is sweet. They can close quickly. There are less hassles without a mortgage involved. And they can choose whether or not to even have an appraisal done. For me, simple real estate transactions are great.
While sellers may appreciate your ability to close fast, they won’t stand to make any more money with you. And…be sure you can verify your funds. Sellers will need to see an account statement or some proof that you really do have the dough!
If you have more questions about buying homes with cash versus taking out a mortgage, feel free to give me a call.