Is Cash Still King in Sarasota Florida?
Yes, every Realtor loves to hear from their buyer that they are paying cash! Usually cash sales can close very quickly and the quicker we close, the quicker we get paid. Cash discounts, timing and over-paying are all things to consider when buying a home with cash.
Cash Discounts
Sometimes buyers believe that if they pay cash, they can get a significant discount on the sales price of the home. Typically, that’s not the case unless the condition of the property makes it difficult for a buyer seeking financing to get a mortgage. If the condition of the property is poor and in disrepair, the buyer’s lender may not lend the money.
We are still currently in a seller’s market in Sarasota. If a seller has two offers on the table, one is cash and substantially lower than asking price and one is financed and closer to asking price, it may make more sense for the seller to wait the 30-60 days for the financed offer to close and net more.
Timing
Because cash purchases can be done quickly without having to wait for a lender to process a loan, a quick close may work for the buyer, but not necessarily for the seller. They may need that extra time to find their new home and get moved. Again, in this case, having the cash doesn’t make your offer more favorable to the seller.
Don’t Overpay Because You’re Paying With Cash
Just because you’ve got the money and you can pay cash, you still want to ask your Sarasota real estate agent to provide you with comparable homes that have sold in recent months. Not knowing the local market could cost you big time because you’re seeing the price tag on the home down here and you’re comparing it to what your money got you up north. If your agent provides you with comps that support the sales price, go for it. If there’s any doubt as to the value, you may want to include an appraisal contingency in your offer. Appraisals are what keep financed buyers from overpaying for a property. Why not spend a few hundred dollars to make sure you are getting the value you expected.
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