Real estate negotiations cash vs mortgage?

I%26#039;ve spotted a home (empty) that is heading toward a short sale. The house needs work but could be a gem when finished.In todays rough housing %26amp; mortgage issues,As a buyer on a unit like this do I have move of a bargining leverage with offering cash instead of getting a mortgage for a purchase or does it not matter?

Real estate negotiations cash vs mortgage?credit check

It can, depending on how soon the house goes to auction.

If you%26#039;re two weeks from the auction, then a cash deal would certainly benefit as you could close immedately, where as a financed deal can run into complications and delay the close.

But if there is plenty of time to spare then in my opinion the only benefit would be if you%26#039;re bidding against someone else, then that%26#039;s just one more thing in your favor.

Frankly, I would use a mortgage and not bury my cash in a house. Especially in a declining market, and where it would cost you more money to get it back out.

Utilize leverage, and only put in as much as it takes to get to a do-able monthly payment.

Good Luck

Real estate negotiations cash vs mortgage?

loan

The lenders%26#039; main concern is getting as much as they can for the property in the shortest amount of time. Waiting for a payment or sale costs the lender money so you definitely have an edge as a cash buyer, but no one but the lender can tell you how much the edge is actually worth.|||Depends on how fast the transaction needs to be completed. Mortgages take time, especially now, and the sellers might be enticed in to taking less money if they know that they won%26#039;t have to wait. You don%26#039;t actually have to use cash, you could leverage your current home. Home equity lines are quicker and easier than an investment style mortgages. Later you could refinance the property at your leisure. Good Luck!|||As long as the contract you write is not contingent upon your receiving financing, it doesn%26#039;t matter to the seller. You%26#039;ll be required to purchase the property, though, no matter what. It can be dangerous if you need the loan to buy the house. If you have the cash as a back-up, go ahead.