Monday Market Myth: All Cash Offers

Myth: All cash offers in a real estate transaction are accepted over bank funded loans.

False: Sometimes all cash offers have an advantage because usually they have no loan appraisal, no loan contingency period, can close quicker, and few people involved in the transaction, but not every seller will automatically take any price a cash offer presents.  Recently in a short sale transaction, a seller’s lender countered the market value offer and asked for about $10,000 more than list price.  The buyers did not decide to increase their purchase prices, so the lender rejected them.  Shocking, yes, but it goes to show that all cash offers do not have the upper hand in every situation.

Know the housing market prior to making an offer, so your offer with have a close of escrow no matter the terms, all cash, USDA with 100% financing, FHA with only 3.5% needed for a down payment, or VA another 100% financed loan. If you need a real estate agent in the Hollister, San Juan, Aromas, Gilroy, Salinas, Monterey, or other surrounding areas, please contact Kristen Jurevich at 831.635.6719

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