Home sellers love a cash offer because it’s perceived as the fastest and easiest way to sell property. Real estate investment companies are everywhere, advertising “quick closing” and “no hassle sales.” Typically, cash-buyer investors promise to skip home inspections and appraisals, and close within two or three weeks. Sounds great if you’re a seller!

However, cash buyers expect to pay much less for a home than a traditional buyer, in return for the convenience they offer. According to the Journal of Finance, cash buyers pay an average of 10% less for a home than mortgage-backed buyers. The discount can be steeper, depending on the home condition and the location.

Some cash buyers start with a decent offer, but then find reasons to whittle that number down to a lesser amount by closing. They may not require a third-party home inspection, but they can still walk through the house themselves and find reasons to adjust the sales price. The “we buy houses” companies are not making money by being generous, kind-hearted souls. They make money by paying as little as possible – sometimes getting properties for 60% of current market value!

A home buyer who has an up-to-date, detailed mortgage pre-approval can absolutely compete against a cash buyer. A healthy earnest money deposit and a respectable down payment help! Ultimately, when a buyer’s offer is presented in the best possible light, by a highly reputable and experienced brokerage, home sellers recognize the value of the offer. We have been helping our Buyer-Clients compete, and succeed, against cash buyers for many years. To learn more about how we do this, read our free e-book, “How to Buy a Home like a Pro!”

As Exclusive Buyer’s Brokers, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Exclusive Buyer’s Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services www.BuyersHome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

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