2 minute read
All-Cash Offer? Think Twice
Rethinking All-Cash Offers
Buying in a Hot Real Estate Market?
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By Therese A. Hartmann
A friend called this morning to go over two offers for her home. Mind you, her house hadn’t been on the market so these were unsolicited offers! One offer was non-contingent (they didn’t have to sell anything first) and all cash. The other was a great offer but they needed a loan.
Which offer should she accept?
It’s never, ever completely straightforward. Depending on the motivation of the seller, something a good agent will know, you’ll find many reasons for someone selling.If there is a Notice of Default, for example, the motivation might be stronger than if an owner died and heirs were selling it. Or, it could be that the sellers have put in an offer on another home. In that instance, there would be an urgency to getting the house sold quickly. In this case, they might appreciate a fast escrow which could come from getting a loan from an experienced loan officer or taking an allcash offer. So, is an all-cash offer always the best offer from the seller’s point of view?I’m here to tell you that having an all-cash offer means nothing if the buyer doesn’t follow through. If you have motivated buyers who will be borrowing money to buy the home — who are preapproved with a reputable lender — this could be your best buyer.
The Conquest program recently rolled out by United Wholesale Mortgage — one of the lenders I personally use the most — is known for getting files turned around in 2-3 weeks. This is generally shorter than most escrow periods! Either way, the end result is exactly the same. The seller sells and the buyer buys. On target, on time!
From a buyer’s point of view, write a letter to the owners to let them know how much you love their home. Include a picture of your family. Get pre-approved and place the pre-approval with the offer. And don’t be afraid to offer fullprice to cinch the deal. There will be opportunities to negotiate once the physical inspection is completed.
And frankly, with rates under 3 percent for many Fannie/Freddie loans, your interest rate can be more meaningful than getting another $20k off the purchase price.
A final suggestion is to stick with one agent. If they see you are loyal, you’ll get the royal treatment and they will come to you first with any rare gems that come on the market.
Therese A. Hartmann has 20 years’ lending experience. She is a Licensed Broker, California Dept. of Real Estate #01048403, NMLS # 298291, affiliated with C2 Financial Corporation. For a free consultation, call Therese today at (805) 798-2158.
Donna Sallen
Sitting on nearly half an acre surrounded by mature trees, this charming home has a lot to offer. There are two bedrooms and two bathrooms, along with a nice, bright living room with a fireplace. The dining room opens out to a covered porch when you can sit and just relax. This home is very private and quiet. So come and see this cozy little gem.
