How to calculate discount when paying in full cash ?

[Gopichand N.]

How do you negotiate when paying full cash for a $400k SFH ?any thumb rule(s) on how much to bargain for ?

[Nathan Grabau]

Unless you are waiving things like inspections or appraisals, a cash offer in itself is not really of that great of a dollar value to a seller. Typically a cash discount exists because a property is not financeable, your loan servicing company say that the condition is so bad that if they foreclose on the property, they believe they will have a very hard time selling it. 

Now if you are willing to close in say 6 days instead of 30-45, and are offering the property as is without an appraisal, I would subtract out the cost to fix things against comps at a 2.5-3x multiple for smaller items and a 1.5x multiple for larger items. If it has a very dated kitchen, and you are comping it against a property with a nicer kitchen, and the kitchen reno is going to take 25k, I would reduce the offer by 40k. If it just needs new carpet and paint and those items are going to cost 7k, I would take the purchase price down by 20-25k. 

If you send me a message about where you are looking, I can get you in touch with top producing Keller Williams agent in that area, and I think they will probably save you more money than the seller is going to end up paying them.