LIKE most things even with property you can get a better deal for cash. And no don’t worry you don’t have to turn up with a suitcase full of $100 bills to do it.
I always find it bizarre that people will exhaust themselves driving around town month after month heading out to open houses, chewing through terabytes of data viewing properties online and spending their precious weekends with agents instead of friends and family all to find a property that they don’t know whether they can buy or not.
In what other purchase do you choose first and then work out whether you can buy it second.
I’m not even referring to affordability, I understand people buy things all the time they can’t afford and shouldn’t buy.
I’m referring to actually completing the sale. The idea of walking in to Myer and trying on clothes every weekend for three months, building a relationship with the sales person, finally choosing the outfit and asking them to please take it off the rack for a few weeks while you go and find out if you can get the money to buy it. Crazy right?
This is a weekly occurrence in the residential real estate world.
You can see the attraction to a seller.
This week I negotiated a sale where one offer was $1,115,000 subject to finance and the other was $1,105,000 cash (meaning not subject to finance). The owner took the cash offer. That’s a $10,000 saving. I’ve seen even larger savings over the years.
In most cases it costs nothing to get pre-approved, it saves you wasting your time viewing properties you can’t buy and it saves owners taking their properties off the market and stressing over a sale that may not happen.
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