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Making a cash offer on a house.

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  • 15-04-2014 5:06pm
    #1
    derekblighe
    Registered Users Posts: 8 ✭


    I'm currently living abroad and wanting to buy a house in Cork for cash ,Iv been looking at a few different houses online but am wondering does my ability to offer cash for a house give me any price advantages over a person looking to finance?


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    #2
    4umbrellas
    Registered Users Posts: 65 ✭✭4umbrellas


    It'll depend on the seller, but you can certainly try using it as a plus point in your negotiations. Some will care, some won't.


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    #3
    Gatica
    Registered Users Posts: 3,300 ✭✭✭Gatica


    I don't see how this makes any difference to the seller as they'll get the money irrespective of whether it's your cash or the banks. However, someone wanting to sell very quickly may look on it more favourably as there's probably less paperwork involved and therefore would be faster than waiting for bank to draw down mortgage for a buyer.


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    #4
    Draco
    Subscribers Posts: 1,911 ✭✭✭Draco


    derekblighe wrote: »
    I'm currently living abroad and wanting to buy a house in Cork for cash ,Iv been looking at a few different houses online but am wondering does my ability to offer cash for a house give me any price advantages over a person looking to finance?
    I'm currently trying to buy at the moment (with a mortgage) and everything I've bid on in the last 6 months has been bought by a cash buyer.

    The main advantage seems to be a quick/easier sale. Banks require an assessment which could result in them refusing to give you the necessary funds and thus nixing the sale. Price wise though, it doesn't seem to offer any discounts (everything I've bid on has gone for at least 30% over asking and in one case over 50%).


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    #5
    iguana
    Registered Users Posts: 12,916 ✭✭✭✭iguana


    You also have the advantage of being able to buy a house that it would be very difficult/impossible to get a mortgage on. If you are willing and able to get it fixed, you could buy a house with a structural issue. You can price the cost of the work into your offer. There is no guarantee the offer will be accepted but the vendor will be more likely to accept the offer, knowing a mortgaged buyer will never be able to buy it.

    You also have much more freedom when it comes to negative equity/probate/currently let sales. If a sale drags on, it is harder for a buyer with a mortgage as they may lose their mortgage approval, or have it reduced, before the sale completes. As a cash purchaser you don't have that worry, so are in a stronger position.


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