Finance Real Estate

The Luxury Panel: Is an all cash offer stronger than an offer with some financing?

APRIL ISSUE The Luxury Panel:  Is an all cash offer stronger than an offer with some financing?

The Luxury Panel is a rotating group of San Diego’s top Real Estate professionals who specialize in the luxury market sharing their expertise on hot topics and home buyer & seller questions.

QUESTION: Is an all cash offer stronger than an offer with some financing?

the luxury real estate panel“International buyers, wealthy clients and retirees are transforming the real estate market with all-cash offers. For a seller, a cash offer is stronger because with a cash offer you can request proof of funds upfront and verify immediately that the buyer has the ability to close the transaction. Often there is no demand for an appraisal (which can slow up the process) and escrow can close earlier and easier with no loan approval. Bottom line, it’s just a simpler transaction.”

Linda Daniels Willis Allen Real Estate

the luxury real estate panel



“All cash offers are the most ideal offers, as the appraisal and mortgage contingencies are removed immediately. It is very important to request proof of funds when an all cash offer is presented. In a competitive market, buyers may claim that the offer is all cash, then opt to obtain a loan instead. This opens up new contingencies and longer time frames. An all cash offer is the best kind of offer, but make sure it is truly all cash.”

Kathy Koop Berkshire Hathaway HomeServices California Properties

the luxury real estate panel“The strength of any offer is always measured by two things: “price” and “terms.” In a competitive market where more than one offer is being considered, an “all cash” offer may appear stronger because of “better terms.” Cash sales provide the ability to close quickly and eliminate the need for an appraisal contingency and a buyer’s loan contingency. This gives undeniable leverage to a cash offer. That said, offers made requiring financing can be very strong as well. Particularly if the terms of that offer (the price) provides the seller with a better return upon a successful close of escrow.”

Jamie Melim Windermere Homes & Estates

the luxury real estate panel



“Each home and each transaction is unique. Cash is king but the king can be demanding and may mandate a discount. Buyer and seller motivation is the determining variable; to a seller motivated by time cash may be worth a discount yet, to another finding the “right” buyer is important. A few days wait for financing may yield a higher price but sometimes families selling their home want a family to buy their home and appreciate the home the way they did.”

Lanz Correia Paci­fic Sotheby’s International Realty


Related posts

PREMIER Business & Finance Pulse of the Local Economy Part 2


Market Update: San Diego Luxury Homes SOLD 12/16/2015-1/15/2016


The State of San Diego Luxury Real Estate – March 2017 Issue