Question by Chad: Does buying a home “cash” allow for a lower approved bid?
Hi, I’m looking at buying a home cash and the home is up for sale for ,000. It is in foreclosure and has been that way for 1 year. The home is not torn apart or anything from the people that lost it. But I only have 000. If I offer all that as a bid on the house would they take it or is the fact it is in “cash” not matter?
I live in michigan if that matters.
Best answer:
Answer by bearr41
The seller gets CASH either way. They don’t care if you borrow the money on a mortgage or pull it out of savings. They still get the same money.
But, offering K in a K house in Michigan is probably not out of line.
What do you think? Answer below!
{ 6 comments… read them below or add one }
answer one is right they get the cash either way but if its been for sale for awhile u can make an offer for it they will take it or not u might have to finance the diff good luck
The banks wants their money so if you have cash they are gonna take cash over the loan. you can probably offer 60K cash if you wanted to.
Cash or financing is the same to the seller. They will get their money either way. You could offer them that amount and see what they have to say. You might end up getting a real bargain.
If you only have $65k, then you can only offer less than $65k. There’s additional cost such as appraisal, escrow, house inspection, etc… that will have to come out of your pocket. With “`cash” offer you do not have loan contingency on the contract which the bank may favor to but mean less protection for you. The bank does not provide any guarantee or reports about the house so make sure you do your research/homework on the house before closing. Good luck.
When someone pays cash the bank knows the property is going to sell. The bank doesn’t have sweat a low appraisal or have to pay any of the buyers points. If the property has been on the market awhile the bank would be nuts to turn it down. In todays tight financing requirements on homes at least 25% of deals fall out of escrow because the buyer not being able to obtain a loan. So yes, not having to get a loan is a big advantage for the buyer.
Any moron that believes that cash offers are not better than an ofter were financing is involved doesn’t have a grasp of reality.
If you only have $65k, then you can only offer less than $65k. There’s additional cost such as appraisal, escrow, house inspection, etc… that will have to come out of your pocket. With “`cash” offer you do not have loan contingency on the contract which the bank may favor to but mean less protection for you. The bank does not provide any guarantee or reports about the house so make sure you do your research/homework on the house before closing. Good luck.
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