The Real Estate Cash Buyer

United Country Midwest Lifestyle Properties likes to keep its clients informed of real estate buying and selling processes. Whether you are buying or selling with a Traditional Listing or Auction Event, understanding what impacts the selling price of a property and the kind of buyer a property attracts. The real estate buyer we
are referring to today is a cash buyer.

Real estate agents often forget that the average Joe has little knowledge about real estate. What agents see and understand in real estate lingo doesn’t translate for the client. It can be very confusing and frustrating for clients to look at listed property prices from various locations with different square footage, acres, and amenities. A
smaller house listed at one location has the same list price of a large house listed at another location. How can this be correct? If you think that does not make sense, you would be right!

United Country Midwest Lifestyle Properties agents want to educate our clients. We want them to be aware of real estate conditions that may impact their buying power in a market on a particular home. When you are competing with a cash buyer on a particular home, the cash buyer comes with some great advantages. While this may sound disappointing at first, it will help you understand what you may be up against.

Cash Advantage
In real estate, we can say it is either a buyer’s market or it is a seller’s market. Within those markets, we can also say that some sellers are looking for a particular buyer, a cash buyer. Who is this cash buyer, and what advantages do they have? 

A cash buyer can make an offer on a home with cash in hand. Having this cash in hand has several advantages. First, having cash allows you to bypass the time and work to obtain a home mortgage. By bypassing the need for a mortgage, you remove the requirement for the mortgage lender to have the home appraised.

While an appraisal is a good thing for any potential owner to have (because you’d like to know what your potential property is worth as well as insuring that property), an appraisal is not a required step when you have the cash to pay for a home. A cash buyer would still want an appraisal to use as another tool for securing a fair price.

Speed advantage
Another advantage to buying with cash is the speed at which you can complete the real estate buying transaction. Most traditional home buyers have to go through the process of listing their home to sell, finding a home to buy, making an offer, having the offer accepted, and then awaiting the appraisal that will affect their mortgage loan amount. 
The cash buyer is ready to make an offer, have it accepted, and then quickly close. When you have cash, you have speed, and those two influence negotiations, especially when making lower offers.

Cash buyer’s appeal and disadvantages to a seller
In many aspects of home selling, a cash buyer is a dream real estate agent client. The conventional hang-ups of The mortgage process don’t exist. These buyers are attractive to home sellers as well.

Home sellers who want to get their money fast generally know what value they have in their property. Knowing the value gives the home seller the confidence to wade through buyers who need a mortgage versus the buyer with cash in hand. The cash buyer can often close a real estate transaction in days, which gives them the upper
hand.

The downside to a cash buyer? The downside can be their aggressiveness. This aggressiveness can be in lower offers, stringent requirements, or property condition expectations. In the end, it can potentially be a turnoff. All that glitters is not gold!

Our conclusion
Cash buyers can have many advantages over traditional mortgage home buyers. With cash in hand, they can move quickly, make lower offers, and negotiate better deals, but this can be seen as aggressive and work against a cash buyer.

United Country Midwest Lifestyle Properties agents have our client’s best interests at heart. Whether you are buying or selling, having a professional real estate agent represent you gives you many legal and financial advantages over the “do it yourself”. 

Give us a call today at 608-742-5000 and see why United Country Midwest Lifestyle Properties is Midwest’s outstanding, award-winning real estate team.