Seller insists on Cash purchase

[Dan Sayre]

Placed an offer for a duplex with conventional loan financing. Seller told his agent that he’s only accepting cash offers. Disclosure report shows three main issues:

1)No AC

2)basement leaks every time it rains even though they have had a professional apply multiple coats of black waterproofing spray

3)the contractor that they used to remodel left them with unfinished electrical work, unfinished bathroom remodel, unfinished kitchen remodel, and preliminary wall construction for a finished basement in an area where the water doesn’t come in.

Both units are vacant. Just trying to figure out what to put in my counteroffer. I can pay cash but it would be 80% of listing price. Plus I would only have $50k to use for remodeling from my partner. Any suggestions would be appreciated.

[Russell Wagner]

An idea, increase the earnest money to motivate the seller.  During due diligence/inspection period see if you can scramble to update as part of the agreement to pass inspection.  Say to the seller, look I am motivated, I will even put in the cash to get the updates to pass such an inspection.  In theory you are putting the most at risk, but so is a cash offer.  Just an idea, may or may not work....