Posted by Alex@CO on December 19, 2002 at 11:46:18:
I think for a seller on MLS, “cash offer” doesn’t have main impact on negotiating the price. Because for the seller, it doesn’t matter whether it is the seller’s cash or the bank’s cash. he will get the same amount of the cash at the closing anyway.
What the “cash offer” can offer is not primarily the price but the time (quick close, such as a 15-day closing because no loan processing is required) and the savings of some closing costs (for example, it is NOT REQUIRED to have an appraisal for cash purchase).
Will MLS owners be in a hurry to sell their property? Will the 15-day quicker closing makes a big difference for an MLS owner? Mostly not, unless it is listed for a very long time and the seller is desperate to sell.
MLS Offers…is it a cash offer, or not ? - Posted by Keith(TX)
Posted by Keith(TX) on December 19, 2002 at 11:16:27:
Hello everyone,
I am a newbie investor (completed two rehabs, and am looking for a wholesale opportunity) here in the Houston area. I have read Steve’s course on wholesaling, and am reading the rehab course now. My question is, since I’m using hard money to fund my deals (if I can’t flip), and I know cash offers hold more weight, should I instruct my realtor to make all cash offers, even though I’m really using hard money lenders, and how does this effect the sales contract clause stating “contingent on financing” ? The Texas RE contract has provisions for “cash paid by buyer at closing”, and/or “3rd party financing”. My realtor has been using the 3rd party financing portion, and using the contingent upon financing portion since I am in reality using private lenders. I know that Steve, and many other investors make “cash offers”, yet still use hard money. I have made many offers (MLS), and have had no responses. I am just wondering if the “contingent upon obtaining financing”, and 3rd party financing stipulations on my offers are a possible reason that sellers are not biting ? Any suggestions, or replies are greatly appreciated.
If you don’t get many acceptances of your offers, I think you must be doing something right. You are probably offering prices that make good money for you. Remember, this is a “numbers game.” Lots of offers, few buys.
My grandpa Starr was born and raised near Elkhart, TX, Anderson County. I have been there several times myself.
If you don’t make your contract contingent upon the financing then it is a cash offer. What if you don’t get financing from the hard money lender…then you flip the property if you can’t get cash.