if you pay the entire amount up front

Not necessarily. The most basic question is whether another qualified buyer will offer more than $260K. If so, there is not much reason to sell you the apartment for less than the other bidder would pay.

Also, a cash buyer isn't always the best-qualified buyer. The seller will look at your whole profile, not just your cash position, in deciding whether you are a slam-dunk for Board approval.

There are coops in Jackson Heights that won't allow all-cash purchases, presumably to cut down on the number of drug dealers residing in their buildings.

Can't they get a fully secured loan using drugs as collateral? I heard Italian banks accept cheese as collateral.

They make you put up four cheeses, so it's not as easy as it sounds. But these would be South American banks.

if you can prove where you got all the cash from your qualified, then if your record is clean you would be in good position i would think

i would think cash would be a convenient for them

"There are coops in Jackson Heights that won't allow all-cash purchases, presumably to cut down on the number of drug dealers residing in their buildings." that is really amazing. are you joking?

No, not joking ... it was told in all seriousness by a friend who bought in JH.

But not 100% sure it's true, and if so it could be that no bank would lend in those buildings at that time, for whatever reasons -- so all-cash buyers were required, not strictly by Board choice, bylaws or policy decision. But this was back in the bubble days, when it would really have taken a lot for a bank not to lend.

Have made several all cash offers for coops in the past two years. The only time we seemed to get an "all cash discount" was because the seller was in a hurry - I'm guessing it was 3-5%, and we were rejected by the coop board. Everyone else said that all cash would only make a difference if they had to decide on equivalent bids. No mortgage application means a quicker transaction, not that big of a deal to warrant a discount.

sjtmd......................did you get rejected because of the all cash bid or other reasons ?

There are coops in LIC that won't allow all-cash purchases, presumably to cut down on the number of drug dealers residing in their buildings.

joking or not it makes for good NYC lore.

woops...i think i just cheated

Don't be ridiculous, Wbottom -- no drug dealer would be caught dead buying in LIC. They're successful businessmen for whom prestige and dignity are paramount.

also don't forget certain boards won't approve a 10% discount since they want a higher price for reserves, pocketing, etc.. went through it myself.. offered all cash at measly 5% despite income requirements above and beyond minimum...

i got the vibe old board members were like 'this guy can afford full price, why not sell it to him at that' ..

boards can suck fat c*ck - not in a good way

I once borrowed money from this Mickey Mouse Bank and they made me put up cheese as collateral.

Turns out my house cat was able to get the payments modified.

meowdified