discount for all cash?
Started by pxg
over 13 years ago
Posts: 0
Member since: Mar 2013
Discussion about
particularly for coops, i'm curious if all cash buyers receive any substantial preference from sellers? and if so, what kind of concession can you get? i'm sure, at the margin, a seller would prefer an all cash buyer & avoid the hassle of hoping the mortgage is approved, coop board approves, etc. does anyone have any insight or experience with this? thanks
Totally dependent on the coop board. The coop board can choose to have an all cash buyer actually take out financing - why, I do not know, but I have heard it does happen.
A cash deal is good in co-op buildings where financing can be tricky (for example, the sponsor still holds a larger number of shares) and it can help move a deal along because there is no waiting for bank approval so the buyer can presumably get in front of the board more quickly. That said, unless a seller is extremely motivated to move fast there won't likely be much of a 'discount'. You might have a leg-up against another (non-cash) buyer but that is about it.
True, bramstar.
Even in a condo, I gave my buyer extra time to come up with the money.
Buyer had 75% cash. I wasn't in a rush to close.