Realtor says cash offer doesn't matter.

[Jacob Stokes]

Hey guys and gals,

I am helping my parents find a house and we have found one with a real estate agent from the area. So, I was going over the offer we would like to make with her this morning and she told me "Cash" offer doesn't really matter. The seller doesn't care about that. Now to me that can't be right, don't banks/financing back out of deals all the time? Also tried telling her to put in certain terms to make it more appealing to the seller, like inspection amounts that we will cover if somethings wrong and won't back out but she said she has 40 years of experience and that doesn't matter either. Any advice will help. Thanks.

[Bruce Lynn]

I always say flip it around as if you were the seller...would you rather have $100,000 financed offer or $85,000 cash offer?  Everyone is different.  I have had more trouble with cash offers than with financed offers.  After 20 years I've had more cash offers go dark and walk away than financed offers.  Now if they were for the same amounts and I can verify certain things, then of course I would rather have cash.  One thing for me is that I can have some comfort with financed offers is I can follow the progress.  Has lender ordered title, have they ordered appraisal, has the appraisal come in, did it make value, have they sent closing docs to title.....with cash, I'm just sitting on the sidelines wondering if buyer is going to show up on closing day?

I think you should listen to your agent, but they should also listen to you too and follow your directions.  If you want to make a low offer and make it for cash, they should follow your wishes.

What's the price of the house?  What do you want to offer?  What's the market like where you are?   What is the value of the house?   Is it priced to sell or is it over priced?   What are the repairs you think are needed?   Are homes in your area selling at list, over list, below list?  Where are you in that mix?   Are most offers cash or financed?

Also when you say cash....is that cash cash, like money in the bank cash...or are you using hard money?  Hard money or private money is not the same as cash.