Tips for negotiating the best real estate cash deals.
well im not sure, but just think if a house costs $300,000 with 7% interest - you're paying back a TOTAL of $718,560, in which $418,560 is ONLY interest. That means you've paid almost TWO AND A HALF TIMES the amount the house cost. so you're JIPPING the bank out of almost HALF A MILLION dollars if you pay ALL cash.
I doubt you'll find any real estate agents wanting to give out any real free advise. There are several reasons for that not just wanting to earn a commission. My two cents: It all depends on the market, property in question, etc. If I am selling in a hot neighborhood that is fetching asking and above asking price offers, you can offer me cash all you want. It maybe a deciding factor between two similar priced offers since you would be able to close faster on average with all cash but that is where the advantage stops. In fact, I would push the issue and either one of you would be raising your asking price. If closing fast isn't an issue then having cash is generally not any more of an advantage to having an otherwise qualified buyer. If you are in a buyers market, you could expect a minumum 10% reduction. I would personally offer 20-25% for cash assuming that the seller isn't in obvious desperation or should I say motivated to sell and willing to entertain offers. I am not going to say that it doesn't hurt to ask because it could destroy any credibility if you really low ball someone. If you do, have your ducks in a row and be able to show why your offer is in fact reasonable. A lot of people base the asking price on emotion and not necessarily fair market value so your job as an investor or agent is to bring them down or up to reality.
