Are Cash Offers King in Sacramento Real Estate?

Agents who consider cash offers king in Sacramento might want to reconsider.

A buyer’s agent on Sunday reminded me that he considers cash offers king when he sent over his buyer’s purchase contract to buy a home. He kept repeating himself, just in case I didn’t understand his English. Cash offer, cash offer, all cash offer. Maybe he’s used to dealing with idiots, but he’s not that experienced. I know this because I looked up his sales in MLS, primarily since I did recognize his name nor company. I always like to know who I’m dealing with on behalf of my sellers. These offers come in from left field so often. Those agents never call to introduce themselves, they just shoot the offer over in an email.

Like I tell my sellers, I’m not the kind of Sacramento Realtor who gets all excited when we receive an offer. That’s because I’ve received so many bogus offers, offers from non-committed buyers, offers that blow up prior to opening escrow, offers from crooks, offers from blowhards, and one thing is for certain. Everybody has an agenda of some sort. It’s my job as a top listing agent to find out as much as I can about the other side and relay that information to my clients so the sellers can make an intelligent decision.

My initial reaction is usually what is the angle here? What is going on? Not everybody writes straight forward and clean offers. I look for mistakes, and I usually find them.

The agent who considers cash offers king was a bit taken by surprise when I told him no, cash offers are not always king. For one thing, buyers with cash can buy anything their heart desires, as long as they can agree on price. There are really no restrictions. Therefore, some, not all of them, develop an attitude. It’s not unusual for a cash buyer to try to renegotiate in the middle of escrow for a lower sales price and threaten to take her cash elsewhere. Or, a cash buyer might find another property the buyer likes better while in the midst of home inspections and the buyer will cancel to chase the other house. There is not always a high level of dedication and commitment from the cash buyer.

Further, it’s all cash in the end to the seller anyway. The only difference is the appraisal and loan qualifications, and if the buyer is already prequalified, most of that hurdle is over. If the home is priced right, it will meet appraisal. So, how are cash offers king in Sacramento?

This particular”all-cash buyer” was also not really a cash buyer. He had a portfolio of stocks he needed to sell to obtain the cash. His cash was not liquid. Although the agent said the buyer lived in the area, the buyer was not in the area when he signed the offer. He was in another state. His check reflected an address in that other state. His offer stated he would not live in the property. When I looked at the agent’s sales over the last 18 months, I found only 2 sales. I went one step further and looked at the buyer for those sales, thinking perhaps it was the same buyer. But no, it was the same buyer, just not this buyer; however, the buyer’s home address was the buyer’s agent’s home address.

Sometimes it makes a difference to sellers if the potential buyer will live in the property versus renting it out. This was one of those times. I laid out all of the pros and cons to the seller. The seller chose the buyer from a position of knowledge. This is what I want for all of my clients, and what they deserve. If you are thinking about selling a home in Sacramento, why not call Elizabeth Weintraub at 916.233.6759, and more 40+ years of experience to work for you?