New York

[LukeWarm]

I'm a cash buyer, looking in Sunnyside, Woodside and Jackson Heights. Looking at some sponsor units, as well.

How much leverage does cash get me, when negotiating with a seller (sometimes seller will be a sponsor).

Lets say a unit is approx. 250k asking price. Been on the market for 6 months. What might my opening offer be, if it was cash? What might my opening offer be, if I was carrying a mortgage? I would like to compare, as well.

I am just looking for estimates on how to stage an offer, and how cash vs. mortgage is different, re: negotiation.

[heaven]

It depends on the house you are buying.   Every seller is different.    If the unit asking price is 250k, if the unit is perfect, in terms of everything is working (kitchen, bath, floor and applances).    And do your research a little about the area units, the price range.    I would say, if the house is perfect and the asking price is comparable.  

And also, it depends on how much you love the unit.   If you love it alot, then you should start at around 230K.    Then the seller will give you an counter offer, do stand on your last ground which means what is your absoluly budget.    Then keep going up the price.   Then at a point, the seller will tell you their bottom price, then you can decide take it or leave it.

Don't afraid to walk, because the property will stay with you quite a period of time, especially you want to keep the unit to yourself or own use.    If you do not love it, don't go the maximum.

On the other hand, if you absoluly love the unit, and money is not a big object for you.   In terms of you still can live comfortably with your lifestyle.    Then you should start at a point, like 240K, most likely the seller will try to meet you in the middle or they will tell you their bottom price, then GET IT WHILE IT IS STILL ON MARKET.

Chances are... if you want it, other people want it too.    Good luck!

[heaven]

Forgot to mention, do mention you are doing "CASH" buying.    Because if you have mutiple offers on the same unite, the seller will take your offer first.    Because it less complicated and close the deal in a minimum of time. 

[Nick2363]

In the past, I've made a cash offer on a property, but never quite felt that it put me into a more favorable position in regards to negotiations. The last time I made a reasonable offer on a property, stating that it would be a cash deal, the seller kept holding out for more.  I suppose their reasoning was that if I had such and such cash, then I could certainly afford $10k more.  It makes sense but unfortunately for them, I knew what I was willing to pay and didn't budge. (They wound up selling later for $10k LESS than what my offer was).  

I think that you should not share your intention to offer cash until you submit your LAST offer on a property.  Kind of like an incentive for the seller to take it.  Otherwise, the seller will try to milk you for as much as they can.    

[dwhitney]

An all-cash offer is only likely to get more attention in two instances:  where the seller doesn't want to deal with a mortgage contingency or doesn't want to deal with a contingency based on you selling your current home - and then only if the seller has been properly advised about what those contingencies mean.  Cash would make a difference in these two situations because it means two fewer chances for you, the buyer, to pull out once the contract's been signed.  However, a lot of people either don't know or don't care about those contingencies and so an all-cash offer is not likely to make a significant difference to them.

Other than that, the seller always ends up with cash after the closing, whether the sale was all-cash or 95% financed.

[chris-carter]

it depends on the house location and how it looks. Seller or the home owner definitely price the home a little more as selling agent would be try to get more than efforts and home owners always expect more without searching the market prices. in my opinion cash can not creat a big difference than mortgage but mortgage is such kind of a trap if people do not act wisely they trapped soon.

[LeonardVice]

I think the higher the better. But if you think it is too high then you should range something but not less than the regular price of the property you are planning tp purchase.