Quote from wilburbear:
Maybe about to buy a home. Have cash, but have rented til now. Don't know a thing about how the process works - but I do know the economic slump is making prices favorable now.
Don't sellers think, "He's got cash, I'll hike the price 5%"?
My wife is a realtor here in Scottsdale, and deals with a number of cash buyers. If you have cash, you're king of this market and it gives you a better negotiating position.
But you might want to take another approach, which is popular with many buyers who have cash, but might want to arranging financing because of low interest rates.
Tell the seller (through your agent or the listing agent) that you will do a cash deal, but you are going to arrange financing for your convenience. (And you will likely need to prove that you have the cash with a bank or broker statement.) And explain that if you don't get financing terms that you like, you will close with cash.
Then, when you fill out the offer/sales agreement, there is typically an area where you specificy financing terms, and the agreement becomes contingent on arranging that financing. (That is what scares sellers these days.) But in your case, do not fill that out, and do not make the deal contingent on financing.
This still leaves you open to arranging financing if you can, and if you want to. But the seller knows that it is not necessary for you to close, because you've promised that.
But remember that if you can't raise the financing, you are then obligated to close the deal with cash. Or, lose your earnest money deposit.
Check this approach with a Realtor in your area, and be certain that the contracts are completed correctly.
