It was not that long ago buyers thought they could get a better deal simply because they were offering cash. During the market run up I think these cash offers contributed significantly to the out of control prices.
Why the cash offer? No appraisals, a quicker closing, plus they get a price discount.
Depending on the circumstances of the sale many sellers were accepting of these lower offers.
Over the past few years qualifying for a mortgage has become more challenging. Mortgage underwriting requirements are tighter. Now you must do more than fog a mirror to get a loan. Many of the questionable creative loans have gone the way of the dinosaur.
More importantly, lenders are doing their homework better before providing a pre-approval.
Any real estate agent worth their title knows to submit a pre-approval (not pre-qualification) letter with any offer. What is the difference between a pre-approval and a pre-qualification?
Any real estate agent worth their title knows what it takes to present a competitive offer. And, if an offer is compete, with few strange contingencies, then a mortgage should not be a huge hurdle that would make a seller want to opt for a lower cash offer. "What is a clean offer?"
The old cash is king fallacy still lives on and will likely die a slow death until the next cycle.
In today's market I suggest buyers get a mortgage pre-approval and work with a real estate agent to be competitive.
Don't worry about the cash competition - for now.
Call Gary L. Waters PLLC at 321-693-3850 for your Florida real estate needs. Florida licensed real estate agent, Serving Brevard Realty, Merritt Island, Florida.