What does "all cash" mean?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:B.

No mortgage is involved so no unforeseen circumstance (as in bank denies mortgage if the appraisal comes back less than the offer ...).

Yes, you have to provide bank statements with the offer.

OP here. Could I provide the bank statements, and waive the financing and appraisal contingencies, then still turn around and get a mortgage? That would still make me "all cash", right? Maybe it makes no difference, but it seems like sellers are increasingly obsessed with getting an "all cash" offer. I guess I'm just trying to figure out if lots of these "all cash" buyers show the assets on paper, then just turn around and get a mortgage.

You would not be a cash buyer in this case. Cash buyers can close much more quickly than a mortgage buyer. What you are describing is a mortgage situation. Doesn’t matter that you have enough in the bank to buy in cash. The fact that you are going through a bank means that you are not all cash.

no, OP would still be considered a cash buyer, unless they needed to delay close to allow for financing concerns.

as long as they can show the assets and the money shows up in the settlement attorneys escrow account the day it is supposed to, no one cares which account initiated the wire.

I disagree. No bank is going to give the buyer a mortgage without an appraisal, even when the buyer waives the financing contingency. So the bank will have to get into the house before closing and it would be clear to the seller that we’re not talking about an all cash deal.

Banks don't go "into" the house. Maybe they drive by, if their computer systems are crap

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:B.

No mortgage is involved so no unforeseen circumstance (as in bank denies mortgage if the appraisal comes back less than the offer ...).

Yes, you have to provide bank statements with the offer.

OP here. Could I provide the bank statements, and waive the financing and appraisal contingencies, then still turn around and get a mortgage? That would still make me "all cash", right? Maybe it makes no difference, but it seems like sellers are increasingly obsessed with getting an "all cash" offer. I guess I'm just trying to figure out if lots of these "all cash" buyers show the assets on paper, then just turn around and get a mortgage.

You would not be a cash buyer in this case. Cash buyers can close much more quickly than a mortgage buyer. What you are describing is a mortgage situation. Doesn’t matter that you have enough in the bank to buy in cash. The fact that you are going through a bank means that you are not all cash.

no, OP would still be considered a cash buyer, unless they needed to delay close to allow for financing concerns.

as long as they can show the assets and the money shows up in the settlement attorneys escrow account the day it is supposed to, no one cares which account initiated the wire.

Wrong. If OP is getting a mortgage, she is not a cash buyer. Does not matter how much money she has liquid. If she's going through the mortgage process, she's buying with a mortgage, not with cash.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:B.

No mortgage is involved so no unforeseen circumstance (as in bank denies mortgage if the appraisal comes back less than the offer ...).

Yes, you have to provide bank statements with the offer.

OP here. Could I provide the bank statements, and waive the financing and appraisal contingencies, then still turn around and get a mortgage? That would still make me "all cash", right? Maybe it makes no difference, but it seems like sellers are increasingly obsessed with getting an "all cash" offer. I guess I'm just trying to figure out if lots of these "all cash" buyers show the assets on paper, then just turn around and get a mortgage.

You would not be a cash buyer in this case. Cash buyers can close much more quickly than a mortgage buyer. What you are describing is a mortgage situation. Doesn’t matter that you have enough in the bank to buy in cash. The fact that you are going through a bank means that you are not all cash.

no, OP would still be considered a cash buyer, unless they needed to delay close to allow for financing concerns.

as long as they can show the assets and the money shows up in the settlement attorneys escrow account the day it is supposed to, no one cares which account initiated the wire.

I disagree. No bank is going to give the buyer a mortgage without an appraisal, even when the buyer waives the financing contingency. So the bank will have to get into the house before closing and it would be clear to the seller that we’re not talking about an all cash deal.

Banks don't go "into" the house. Maybe they drive by, if their computer systems are crap

Banks send an appraiser out.

[Anonymous]

I made an all-cash offer (not in the DMV) and documentation proved that I had the cash on hand (even in brokerage accounts). But I ended up getting a mortgage for a small portion of the purchase price anyway. My understanding was that I was on the hook for an all-cash closing, but if I was able to get financing in time, that was fine too, but that I'd better be ready to close on the closing date one way or the other.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:B.

No mortgage is involved so no unforeseen circumstance (as in bank denies mortgage if the appraisal comes back less than the offer ...).

Yes, you have to provide bank statements with the offer.

OP here. Could I provide the bank statements, and waive the financing and appraisal contingencies, then still turn around and get a mortgage? That would still make me "all cash", right? Maybe it makes no difference, but it seems like sellers are increasingly obsessed with getting an "all cash" offer. I guess I'm just trying to figure out if lots of these "all cash" buyers show the assets on paper, then just turn around and get a mortgage.

You would not be a cash buyer in this case. Cash buyers can close much more quickly than a mortgage buyer. What you are describing is a mortgage situation. Doesn’t matter that you have enough in the bank to buy in cash. The fact that you are going through a bank means that you are not all cash.

no, OP would still be considered a cash buyer, unless they needed to delay close to allow for financing concerns.

as long as they can show the assets and the money shows up in the settlement attorneys escrow account the day it is supposed to, no one cares which account initiated the wire.

I disagree. No bank is going to give the buyer a mortgage without an appraisal, even when the buyer waives the financing contingency. So the bank will have to get into the house before closing and it would be clear to the seller that we’re not talking about an all cash deal.

The term "cash offer" means that the purchaser is committing to settle on a specified date and the offer is not contingent on financing or appraisal-- aka, the purchaser has demonstrated that they have the liquid funds to settle.

The GCAAR contract is very clear that the purchaser can pursue alternate financing as long as there are no additional expenses to the seller and the settlement date is not delayed, and that the seller agrees to allow access for inspectors, surveyors, or appraisers. Obviously something like this is not plausible on a 10-day close, but it is definitely doable on a 60-day close, and likely possible on a 30-day close.

[Anonymous]

It's B. We just did this on the sale of our home. For proof of funds at the time of contract, the buyer produced evidence of stock ownership worth $60M.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most times there is zero advantage to it. Not sure why people talk about it so much.

If you have offers both presented without contingencies go with the highest offer. Cash or not.

Even if the appraisal comes in low, without an appraisal contingency there is no difference.

+1 the seller always gets all cash. They don't care if it's from the back or from you.

While I agree with you -- my realtor seems to think the cash offers win more often and that I am at a disadvantage.

sellers do care. but also cash offers tend to win more often because they inherently come with fewer contingencies. if you have an offer with a 5% deposit, no financing contingency, no appraisal contingency, and no inspection contingency, and a 10-day close with a 30-day rentback, and another offer with a 1% deposit, a 45-day close, with an appraisal contingency and a 90% loan... what do you think the seller is going to prefer?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:B.

No mortgage is involved so no unforeseen circumstance (as in bank denies mortgage if the appraisal comes back less than the offer ...).

Yes, you have to provide bank statements with the offer.

OP here. Could I provide the bank statements, and waive the financing and appraisal contingencies, then still turn around and get a mortgage? That would still make me "all cash", right? Maybe it makes no difference, but it seems like sellers are increasingly obsessed with getting an "all cash" offer. I guess I'm just trying to figure out if lots of these "all cash" buyers show the assets on paper, then just turn around and get a mortgage.

You would not be a cash buyer in this case. Cash buyers can close much more quickly than a mortgage buyer. What you are describing is a mortgage situation. Doesn’t matter that you have enough in the bank to buy in cash. The fact that you are going through a bank means that you are not all cash.

no, OP would still be considered a cash buyer, unless they needed to delay close to allow for financing concerns.

as long as they can show the assets and the money shows up in the settlement attorneys escrow account the day it is supposed to, no one cares which account initiated the wire.

I disagree. No bank is going to give the buyer a mortgage without an appraisal, even when the buyer waives the financing contingency. So the bank will have to get into the house before closing and it would be clear to the seller that we’re not talking about an all cash deal.

The term "cash offer" means that the purchaser is committing to settle on a specified date and the offer is not contingent on financing or appraisal-- aka, the purchaser has demonstrated that they have the liquid funds to settle.

The GCAAR contract is very clear that the purchaser can pursue alternate financing as long as there are no additional expenses to the seller and the settlement date is not delayed, and that the seller agrees to allow access for inspectors, surveyors, or appraisers. Obviously something like this is not plausible on a 10-day close, but it is definitely doable on a 60-day close, and likely possible on a 30-day close.

People are confusing cash offer with cash buyer. You can make an offer in cash, but choose to secure a mortgage and end up a buyer with a mortgage. The main point is that you need to meet the terms of your offer, so if you make a cash offer and can't close in the promised amount of time (say, 14 days) because you were planning on security a mortgage but can't because the bank was slow, you still need to pony up the cash, or you'd risk losing your earnest money deposit.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:B.

No mortgage is involved so no unforeseen circumstance (as in bank denies mortgage if the appraisal comes back less than the offer ...).

Yes, you have to provide bank statements with the offer.

OP here. Could I provide the bank statements, and waive the financing and appraisal contingencies, then still turn around and get a mortgage? That would still make me "all cash", right? Maybe it makes no difference, but it seems like sellers are increasingly obsessed with getting an "all cash" offer. I guess I'm just trying to figure out if lots of these "all cash" buyers show the assets on paper, then just turn around and get a mortgage.

You would not be a cash buyer in this case. Cash buyers can close much more quickly than a mortgage buyer. What you are describing is a mortgage situation. Doesn’t matter that you have enough in the bank to buy in cash. The fact that you are going through a bank means that you are not all cash.

no, OP would still be considered a cash buyer, unless they needed to delay close to allow for financing concerns.

as long as they can show the assets and the money shows up in the settlement attorneys escrow account the day it is supposed to, no one cares which account initiated the wire.

I disagree. No bank is going to give the buyer a mortgage without an appraisal, even when the buyer waives the financing contingency. So the bank will have to get into the house before closing and it would be clear to the seller that we’re not talking about an all cash deal.

Banks don't go "into" the house. Maybe they drive by, if their computer systems are crap

Banks send an appraiser out.

Not for a HELOC on my $1.2m house

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:B.

No mortgage is involved so no unforeseen circumstance (as in bank denies mortgage if the appraisal comes back less than the offer ...).

Yes, you have to provide bank statements with the offer.

OP here. Could I provide the bank statements, and waive the financing and appraisal contingencies, then still turn around and get a mortgage? That would still make me "all cash", right? Maybe it makes no difference, but it seems like sellers are increasingly obsessed with getting an "all cash" offer. I guess I'm just trying to figure out if lots of these "all cash" buyers show the assets on paper, then just turn around and get a mortgage.

You would not be a cash buyer in this case. Cash buyers can close much more quickly than a mortgage buyer. What you are describing is a mortgage situation. Doesn’t matter that you have enough in the bank to buy in cash. The fact that you are going through a bank means that you are not all cash.

no, OP would still be considered a cash buyer, unless they needed to delay close to allow for financing concerns.

as long as they can show the assets and the money shows up in the settlement attorneys escrow account the day it is supposed to, no one cares which account initiated the wire.

I disagree. No bank is going to give the buyer a mortgage without an appraisal, even when the buyer waives the financing contingency. So the bank will have to get into the house before closing and it would be clear to the seller that we’re not talking about an all cash deal.

Banks don't go "into" the house. Maybe they drive by, if their computer systems are crap

No, banks don’t go into a house, but they send appraisers who do. At least that has been my experience every one of the eight or 10 times I bought properties. What are you talking about?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:B.

No mortgage is involved so no unforeseen circumstance (as in bank denies mortgage if the appraisal comes back less than the offer ...).

Yes, you have to provide bank statements with the offer.

OP here. Could I provide the bank statements, and waive the financing and appraisal contingencies, then still turn around and get a mortgage? That would still make me "all cash", right? Maybe it makes no difference, but it seems like sellers are increasingly obsessed with getting an "all cash" offer. I guess I'm just trying to figure out if lots of these "all cash" buyers show the assets on paper, then just turn around and get a mortgage.

You would not be a cash buyer in this case. Cash buyers can close much more quickly than a mortgage buyer. What you are describing is a mortgage situation. Doesn’t matter that you have enough in the bank to buy in cash. The fact that you are going through a bank means that you are not all cash.

no, OP would still be considered a cash buyer, unless they needed to delay close to allow for financing concerns.

as long as they can show the assets and the money shows up in the settlement attorneys escrow account the day it is supposed to, no one cares which account initiated the wire.

I disagree. No bank is going to give the buyer a mortgage without an appraisal, even when the buyer waives the financing contingency. So the bank will have to get into the house before closing and it would be clear to the seller that we’re not talking about an all cash deal.

Banks don't go "into" the house. Maybe they drive by, if their computer systems are crap

Banks send an appraiser out.

Not for a HELOC on my $1.2m house

Very different situation. Very. How much did you owe on your house when you applied for the HELOC?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most times there is zero advantage to it. Not sure why people talk about it so much.

If you have offers both presented without contingencies go with the highest offer. Cash or not.

Even if the appraisal comes in low, without an appraisal contingency there is no difference.

+1 the seller always gets all cash. They don't care if it's from the back or from you.

While I agree with you -- my realtor seems to think the cash offers win more often and that I am at a disadvantage.

It's more that all cash comes with the "close in 7 days" or similar expediency. You can't get a mortgage in place faster than the cash that you just showed the buyer you have on hand to buy immediately.

[Anonymous]

I guess I'm the only cash buyer who didn't have to prove anything regarding funds. It must be a regional thing. All I did was make a very minimal earnest deposit after the offer was accepted, then wire the full money to the seller's account a couple days before the closing, and done.

[Anonymous]

In either A or B, as a seller I would demand to see sufficient funds to complete 100% of the purchase.

Also, a buyer can easily secure a mortgage after closing, so I would not allow any 3rd parties related to securing a mortgage to do much of anything until the closing.

Or at the very least, I would expect a fairly large escrow deposit if someone is waiving the financing contingency, and make it clear that we are keeping the deposit if the deal doesn't close on the closing date.

[Anonymous]

This is real cash. After Sandy investors were looking to buy damaged homes quick with no flood insurance. First they checked owner had clean title. No mortgage or liens.

They were showing up with a Chase representative with blank teller check stock a lawyer title person and car service.

Agreed price, person gets gets his title out, or car service takes him to safe deposit box located in. Lawyer and title company does title transfer and Chase cut check. Buyer has moving company on standby to move salvaged stuff to storage unit at their cost and driver to take them to hotel.

They ended up getting chased away by angry people after they swiped 5-10 houses at bargain prices