Why do home sellers prefer cash buyers?

Here's another benefit for cash buyers that enjoy, or at least, don't mind doing home improvements themselves.

If the house needs significant work, an appraisal and home inspection will kill any opportunities for someone to buy the house with financing. Lenders are cautious about the condition of the collateral.

I used to buy homes cash with my brothers when I was younger and we would do the work ourselves. I'm talking HUGE discounts - because only a cash buyer would be able to buy these homes - lenders wouldn't touch these houses.
 
Quote from goldboy:

They don't care. approved buyer with mtg is the exact same thing. why would anyone care where the money comes from?
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Talk to someone that tried to sell an old home to an FHA or VA financed buyer. Then you'll understand the benefit of a cash buyer.
 
Quote from goldboy:

An approved mtg buyer is as good as cash.

I don't deal with FHA or VA govt dole types, so I can't comment.
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If you can't comment about a significant part of the market - then you don't know what the hell you're talking about.

Here's another scenario:

If a condo development has a disproportionately large concentration of rentals or sometimes second homes, it's difficult to get financing.

Overall, it depends on the market and the type of home being sold/bought. A multi unit, a condo, an older home.... all these can be headaches if financing is involved.

I was in the real estate biz for years - I have seen hundreds of closings from 30K to a million plus.

So guess what? In my view, an approved mtg buyer is only approved when the wire from the lender makes it to the closing table.

I have seen everything that can possibly go wrong - go wrong - whether it's a dump of a house or a McMansion.
 
I just closed on a Duplex 2 weeks ago that we agreed to sell in September of 2009. The bank had all kinds of problems with Fannie and new regulations. Almost fell through a couple times with one of the bank's best customers. I wouldn't count on anything these days involving banks.

If I were to do it over knowing what I know now I'd take cash at a discount for sure over someone financing (within reason).
 
A 1.4 million $ home was up for short sale a few weeks ago for 333k. There was a little bidding war and the guy with the cash got it for 380k. House was under contract within 24hrs of listing and closed with in a week. Guys with cash are the only one getting these deals. In this market if you have cash you need to find a realator that deals in short sales and you need to be able to pull the trigger the same day a house is listed. Just like trading...know your market and don't hesitate.
 
Quote from sprinter:

Approved mtg is the same thing as cash.
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Yeah and that is exactly why the pre-approved papers state that this is NOT a final approval, hence why you do not actually have the funds.

Pre-approved means nothing to any sensible seller in this market.
 
Quote from sprinter:

What stupid stories. Approved mtg is the same thing as cash. Be an idiot and take less cause no bank involved. Morons

have in the contract if the funds are not transferee within 24 hours or whatever. Deal is off. Who cares where the money is from.
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Funds transferred within 24 hrs? What the hell are you talking about? Do you know how a closing works? Are you aware that the loan and appraisal process can take 30 to 90 days or longer? And unless you are in an escrow state, closing should take a couple hours.
 
Just wanted to mention that my neighbor put his house on the market yesterday and sold it today for about what it was worth. I was very surprised.
 
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