Comment by ryandrake
7 days ago
As a home buyer, I've been beaten many times by an all-cash offer that was significantly lower than my financed offer. For example, a $450K all-cash offer where they'd close in 7 days beat my $525K 80/20 offer where it would have taken me 25+ days to close.
This makes sense for the seller depending on how often a financed offer falls through. Our agent mentioned that in Amsterdam for example over 1/3rd of the offers with a financing condition fall through. And they do so weeks after the signing of the agreement so it costs the seller significant time and money.
With such a high chance of not actually getting the sale done, sellers are motivated to take 475 immediate cash instead of 525 with a 1/3rd risk of having to do it all over. Especially if they need the cash to buy their next home.
> I've been beaten many times by an all-cash offer that was significantly lower than my financed offer
Note that all cash commonly means no financing contingency. I put in an all-cash offer and financed it. I just didn’t have an out if I couldn’t find financing I liked. (Legally.)