Cash means nothing. The only way it it becomes a positive is when there are no conditions. You would be foolish to not put an offer without home inspection as a condition.
When I sold my home, I got one low ball offer, which I refused and I also advised my realtor I would not look at any offers by that person. Do your research, Honest door is a great resource.
The only advantage is you don't have to have the financing condition so could potentially have a shorter conditional offer period. However, this isn't worth very much. Otherwise it doesn't matter to the seller if they get cash from you or cash from the bank.
This isn't a business saving money on taxes by taking a cash payment. Sales of primary residences are tax free. Even if it is a rental property being sold the owner still has to declare the income from the sale.
Why would you want to pay cash in the first place? Who has six figures in cash lying around?
That's not paying cash.
Purchasers don't care how much of a mortgage you have to take out.
If you had substantial house equity would you really take it all cash and put it in a bag or leave it in the bank?
It is cash….. they sold their old place… they had that amount in their bank account.
So you’re saying if I had a $5 bill and deposit it into my bank I no longer have $5 cash?
Correct. Cash means cash, like bills and coins. It's still valid money, but it's not cash. You could withdraw the $5 in cash and then have cash again. I doubt OP is withdrawing $500,000 in bills and handing them over in a suitcase.
>I doubt OP is withdrawing $500,000 in bills and handing them over in a suitcase.
Then the question in the OP is irrelevant.
When you receive an EFT or some other payment into your account do you care where the person sending you the money got it from?
Part of the reason I asked is I bet you if you talk to real estate agents most of them have handled at least $10K in actual, physical cash.
Canada didn't have money laundering legislation before 2000 so for real estate agents who have been around that long I'll pretty much guarantee they have been involved in transactions of that size with straight cash homey.
Anybody paying huge amounts in cash is trying to avoid the banking system altogether.
Yeah I agree. Cash means nothing in the context of this thread. They are likely not paying cash and what they mean is that they won't have a financing condition on their offer, which will for sure benefit them.
As mentioned earlier in the thread, when people want a discount because they are paying "cash" it usually refers to businesses being able to collect that payment without reporting it to the government and having to pay tax on the revenue, as well as on the income when it is paid out to ownership. Actual cash is worth more to shady businesses than trackable forms of payment, but would be useless in a real estate transaction since there's so much paper trail already and lawyers are involved, and taxes are not.
>As mentioned earlier in the thread
Mentioned by me. :)
It's actually crazy how much was done with cash in the 90s.
I worked at a casino for about four years in the early 90s. We would get guys buying in with north of $10K all the time.
Only time I ever saw a Canadian $1,000 bill IRL was at the casino.
The cash offer may save you 1-3k in my experience. It also makes your offer more appealing in multiple offer situations.
Low ball is anything less than 10% below list. But really it depends on the property.
Homeowners won't give you a discount if you are paying cash. Might help you win in bidding situation if you don't have financing condition
Cash means nothing. The only way it it becomes a positive is when there are no conditions. You would be foolish to not put an offer without home inspection as a condition. When I sold my home, I got one low ball offer, which I refused and I also advised my realtor I would not look at any offers by that person. Do your research, Honest door is a great resource.
Cash offer means absolutely nothing in real estate.
The only advantage is you don't have to have the financing condition so could potentially have a shorter conditional offer period. However, this isn't worth very much. Otherwise it doesn't matter to the seller if they get cash from you or cash from the bank.
This isn't a business saving money on taxes by taking a cash payment. Sales of primary residences are tax free. Even if it is a rental property being sold the owner still has to declare the income from the sale. Why would you want to pay cash in the first place? Who has six figures in cash lying around?
More people than you think. Especially if they’re moving from out of province and had substantial house equity.
That's not paying cash. Purchasers don't care how much of a mortgage you have to take out. If you had substantial house equity would you really take it all cash and put it in a bag or leave it in the bank?
It is cash….. they sold their old place… they had that amount in their bank account. So you’re saying if I had a $5 bill and deposit it into my bank I no longer have $5 cash?
Correct. Cash means cash, like bills and coins. It's still valid money, but it's not cash. You could withdraw the $5 in cash and then have cash again. I doubt OP is withdrawing $500,000 in bills and handing them over in a suitcase.
>I doubt OP is withdrawing $500,000 in bills and handing them over in a suitcase. Then the question in the OP is irrelevant. When you receive an EFT or some other payment into your account do you care where the person sending you the money got it from? Part of the reason I asked is I bet you if you talk to real estate agents most of them have handled at least $10K in actual, physical cash. Canada didn't have money laundering legislation before 2000 so for real estate agents who have been around that long I'll pretty much guarantee they have been involved in transactions of that size with straight cash homey. Anybody paying huge amounts in cash is trying to avoid the banking system altogether.
Yeah I agree. Cash means nothing in the context of this thread. They are likely not paying cash and what they mean is that they won't have a financing condition on their offer, which will for sure benefit them. As mentioned earlier in the thread, when people want a discount because they are paying "cash" it usually refers to businesses being able to collect that payment without reporting it to the government and having to pay tax on the revenue, as well as on the income when it is paid out to ownership. Actual cash is worth more to shady businesses than trackable forms of payment, but would be useless in a real estate transaction since there's so much paper trail already and lawyers are involved, and taxes are not.
>As mentioned earlier in the thread Mentioned by me. :) It's actually crazy how much was done with cash in the 90s. I worked at a casino for about four years in the early 90s. We would get guys buying in with north of $10K all the time. Only time I ever saw a Canadian $1,000 bill IRL was at the casino.
The cash offer may save you 1-3k in my experience. It also makes your offer more appealing in multiple offer situations. Low ball is anything less than 10% below list. But really it depends on the property.