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But It's A Cash Offer

 

Why do some agents and buyers feel that they can negotiate and get a much

better deal with a cash offer?

 

 cash money margaret rome

 

Don’t get me wrong; we all like a clean cash contract without contingencies.

But a well-written offer, with financing in place, and a substantial EMD has just as much chance.

 

To accept a cash contract, show me the money, proof of funds, and a good faith deposit.

Note: The seller will be receiving the same amount of money at settlement whether cash or financed.

 

A lot has to do with the reliability and reputation of the people involved, including the Realtor®, lender, title company, inspectors and clients

It boils down to personal preference.

 

Here are some strategies for getting an offer accepted.

 

If you would like to talk about making an offer on a home?

Call Margaret Rome.

 

Margaret Rome

 

 

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Sell Your Home With Margaret Rome

Broker-Owner HomeRome Realty 

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Author of Real Estate the Rome Way

mrome@HomeRome.com

410.530.2400

 

 
Comment balloon 30 commentsMargaret Rome Baltimore 410-530-2400 • December 19 2019 08:54PM

Comments

We always get this as well.  It sometimes works without the contingencies but sellers are holding out on full price and sometimes better in our market.

Posted by Rose Mary Justice, Synergy Realty Pros (Synergy Realty Pros) 8 months ago

 

Sounds like  you are in a real seller's market Rose Mary Justice 

Posted by Margaret Rome Baltimore 410-530-2400, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 8 months ago

Cash is nice--one less thing to possibly go awry--but a solid buyer who is emotionally invested in the property and a stellar agent with whom to work trumps cash with flighty agents and principals.

Posted by Lottie Kendall, Helping make your real estate dreams a reality (Compass) 8 months ago

I agree generally. However, sometimes a seller has to move fast and a quick close with cash becomes desirable. If he seller is not in a rush the better price prevails. Also a buyer that barely qualifies for a loan can result in an unpleasant surprise when a financial negative event occurs such as loss of job or somehing pops on the credit report. No one wants a "Back on the Market" to a loan situation.

Posted by Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI, Arizona Homes and Land Group/ Buy or Sell (HomeSmart Real Estate) 8 months ago

Also those bringing cash often think they can offer less as they are paying cash. Not always the case.

Posted by Nick Vandekar, 610-203-4543, Tredyffrin Easttown Realtor, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400) 8 months ago

Morning Margaret.

Cash is always nice, however if the buyers start to downgrade the property showing the green backs, it can backfire on them.

Posted by James Dray, Exceptional Agents, Outstanding Results (Fathom Realty) 8 months ago

Good morning Margaret. As the saying goes "green is green" whether it comes directly from the buyer or with the assistance of a lender. It all spends. Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) 8 months ago

Hello Margaret:  an all "cash" offer is just a piece and definitely not the entire/ finished puzzle.  Everything needs to come together.   Voila. 

Posted by Michael Jacobs, Los Angeles Pasadena 818.516.4393 8 months ago

It is the lack of contingencies that make a difference with cash.

Posted by Sheri Sperry - MCNE®, (928) 274-7355 ~ YOUR Solutions REALTOR® (Coldwell Banker Realty) 8 months ago

Hi Margaret Rome, Baltimore Maryland -  It sounds great but "show me the money" proof of funds with a good deposit makes it real.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) 8 months ago

You are absolutely correct in having them show you the money, Margaret.  And, I also agree it is the lack of contingencies that makes a difference with cash offers.

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) 8 months ago

Hi Margaret... as I often have told buyers... cash might move (might) move them to the head of the line in a multiple offer situation but it won't get them some huge discount in a market starved of inventory. And I've had clients turn down cash offers for financed ones because the overall offer simply was better and the buyers highly qualified.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Realty) 8 months ago

Lottie Kendall Even with cash things can go awry! I had a cash buyer with a $10K EMD that walked the night before closing. Lost her deposit but put the seller in a terrible financial position. 

Forgot about that one from many years ago.

Posted by Margaret Rome Baltimore 410-530-2400, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 8 months ago

Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI  So true but look at my response #13.

Posted by Margaret Rome Baltimore 410-530-2400, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 8 months ago

Nick Vandekar, 610-203-4543 It is not always the case.

Posted by Margaret Rome Baltimore 410-530-2400, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 8 months ago

 

James Dray Cash or financing...there is no guarantee!

Posted by Margaret Rome Baltimore 410-530-2400, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 8 months ago

Wayne Martin Another good comment! Green is green whether from loan or hard cash.

Posted by Margaret Rome Baltimore 410-530-2400, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 8 months ago

Michael Jacobs Just a piece and there is no guarantee with any contract.

Posted by Margaret Rome Baltimore 410-530-2400, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 8 months ago

Nina Hollander Lack of contingencies is still no guarantee. I have another post to write about a cash deal that was called off the night before closing. 

Posted by Margaret Rome Baltimore 410-530-2400, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 8 months ago

Grant Schneider Yes show me the money!

Posted by Margaret Rome Baltimore 410-530-2400, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 8 months ago

Myrl Jeffcoat Lack of contingency with a cash offer is a plus but again there are no guarantees. 

Posted by Margaret Rome Baltimore 410-530-2400, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 8 months ago

Yes I sometimes get folks who think cash is king, even in a short inventory market and multiple bid.....

Posted by Anna Banana Kruchten Arizona's Top Banana!, 602-380-4886 (HomeSmart Real Estate BR030809000) 8 months ago

Nina Hollander Cash is only one part of the offer. The entire contract needs to be compared. I have seen a financed offer chosen because the buyers were more committed and involved than the "cash" buyer.

This is the time you need the utmost confidence in your lender!

Posted by Margaret Rome Baltimore 410-530-2400, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 8 months ago

Ca$h is only king if it's actually there! I recall an offer on a listing years ago and the buyer refused to show proof of funds. There was a novel's worth of explanations but none mattered to the seller & I. The seller chose a VA buyer with 100% financing instead because there was a solid commitment letter in place stating that funds had been verified. 

Hi Margaret! 

Posted by Andrea Bedard, M.A.; REALTOR® Silver Spring, MD and beyond (Thompson Company, REALTORS®) 8 months ago

As with most things, it depends upon the rest of the terms. And, the motivation of the buyers. Cash, when all things are equal, can certainly be intoxicating. Ha ;) 

Posted by Debb Janes EcoBroker and Bernie Stea JD, REALTORS® in Clark County, WA (ViewHomes of Clark County - Nature As Neighbors) 8 months ago

Oh, and to hit the most important point you make. I agree, a cash offer does not mean you get to beat up the sellers, or offer less than the home is worth. Money is money. 

Posted by Debb Janes EcoBroker and Bernie Stea JD, REALTORS® in Clark County, WA (ViewHomes of Clark County - Nature As Neighbors) 8 months ago

This is a very good perspective to have.

Have a wonderful weekend.

Happy Holidays!

Posted by Roy Kelley (Realty Group Referrals) 8 months ago

Andrea Bedard You and your sellers were smart to make that decision.

Posted by Margaret Rome Baltimore 410-530-2400, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 8 months ago

Anna Banana Kruchten CRB, CRS Cash is nice when the rest of the terms are there!

Posted by Margaret Rome Baltimore 410-530-2400, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 8 months ago

Debb Janes EcoBroker and Bernie Stea JD  Cute comments.

Cash can be intoxicating but money is money.

Posted by Margaret Rome Baltimore 410-530-2400, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 8 months ago

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