“Competing with a Cash Buyer”

“Competing with a Cash Buyer”


I was quoted in this article on this very topic.





So often a Realtor will call me and ask me about my pre-qualification and that is extremely important when it comes to competing against another buyer especially a cash buyer.


If there is no difference in the offer more times than not the cash offer will win out, but that may not be best for the seller. The offered price, contingencies and occupancy will also come into play so understanding the strength of the buyer is vital to a successful transaction.


I bid on a property recently that was part of an estate that was being liquidated and was an all-cash offer. I didn’t get the property. I was told the folks that got the property offered $2,000 more, but there were contingencies, a perfect example where my cash offer didn’t get it done. The buyers must have a good loan officer.

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com



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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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Comment balloon 30 commentsJoe Petrowsky • October 26 2015 01:21PM


Interesting perspective, Joe.  Yes, I guess it's the sum or combo of the elements.  Some items are more important to some sellers than others.

Posted by Debbie Gartner, The Flooring Girl & Blog Stylist -Dynamo Marketers (The Flooring Girl) almost 4 years ago

H Joe.  How do you compete with a cash no contingency offer?  It's tough.

Posted by Conrad Allen, Webster, Ma, Realtor (Re/Max Professional Associates) almost 4 years ago

I would think a cash offer with no contigency on mortgage, appraisal, etc would win out, but obviously that's not always the case!

Posted by Kat Palmiotti, The House Kat (Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com) almost 4 years ago

Good morning Joe. It is hard to beat a cash offer unless it is full of of other contingencies.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) almost 4 years ago

An all cash offer with only a 2,000.00 difference?  I believe I would have taken the cash offer if everything else was comparable. 

Posted by James Dray, Exceptional Agents, Outstanding Results (Fathom Realty) almost 4 years ago

Good morning Joe Petrowsky,

It is tough to compete with a cash buyer. One of my buyers wanted a particular property so bad he made the decision to waive his financing contingency (he was a golden buyer) and offered a higher price (I warned him it might not appraise). He got the home and the home appraised. He still to this day thanks me for helping him win his house..he loves it!!! You can compete but your waiving some important contingencies.

Posted by Dorie Dillard CRS GRI ABR, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.750.6899) almost 4 years ago

Joe, I agree with COnrad...dead in the water on a cash offer with no contingencies at the right price...you have to pay a premium if you truly want it.

Posted by Ginny Gorman, Homes for Sale in North Kingstown RI and beyond (RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate) almost 4 years ago

We often see cash buyers losing out because they take a "cash discount" when it comes to offer price.  At the end of the day, if you have a strong finance buyer who closes, it's all cash. 

Posted by Susan Haughton, Susan & Mindy Team...Honesty. Integrity. Results. (Long and Foster REALTORS (703) 470-4545) almost 4 years ago

Good morning Joe. So many factors to consider, but Cash is still a large factor. Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) almost 4 years ago

Hello Joe,

Cash is not always King with buying properties...but things always work out in the end - there's another, better, property that will come your way!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) almost 4 years ago

I agree with Susan's comment. I have had seller clients who have done the same.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) almost 4 years ago

Joe: Cash offers with no contingencies typically win out in my market...especially if they are quick to close.

Posted by Anita Clark, Realtor - Homes for Sale in Warner Robins GA (ColdwellBanker SSK Realtors ~ 478.960.8055) almost 4 years ago

Good morning, Joe -- I've represented ALL CASH buyers who have lost to financed offers -- you never know what can happen in real estate especially when multiple offers are submitted. 

Posted by Michael Jacobs, Los Angeles Pasadena 818.516.4393 almost 4 years ago

Home buyers and their agents need to be well prepared when competing with cash offers.

Posted by Roy Kelley (Realty Group Referrals) almost 4 years ago

Very true.  In some cases the terms of the offer are powerful enough for the seller to look past the advantage of not dealing with a lender.

Posted by Ralph Gorgoglione, Hawaii and California Real Estate (310) 497-9407 (Maui Life Homes / Metro Life Homes) almost 4 years ago


Real estate has so many twists and turns when it come to $$.  You make an excellent point.  A

Posted by Ron and Alexandra Seigel, Luxury Real Estate Branding, Marketing & Strategy (Napa Consultants) almost 4 years ago

Then again Joe Petrowsky maybe you should have offerred more. And somebody should have been able to "explain" the negative value of contingencies. Just saying...

Bill Roberts

Posted by Bill Roberts, "Baby Boomer" Retirement Planner (Brooks and Dunphy Real Estate) almost 4 years ago

Joe Petrowsky Lately, I have seen where all cash buyers are winning more multiple offer homes, and I must believe that many of these all cash offers may be successful, because the appraisal contingencies are not part of the contract. This in itself is foolhardy and when we have cash buyers, we do strongly advise they have the home appraised

Posted by Sandy Padula and Norm Padula, JD, GRI, Presence, Persistence & Perseverance (HomeSmart Realty West & Geneva Financial, Llc.) almost 4 years ago

We always hear that "Cash is King"...guess that's not always the case!

Posted by Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400, Long Island Home and Condo Specialists (The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803) almost 4 years ago

Joe, thanks for the focus on Cash Offers. Sellers can be a puzzle some times. They could choose a Buyer's offer because they like their children and want children in their home. Many different reasons they choose from multiple offers. I would say it is most likely a cash offer will win the day.

Posted by John Wiley, Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA (Right Move Real Estate Group- EXP Realty) almost 4 years ago

Joe-While cash is usually king, as you point out, that's no always the case.

Posted by Wayne Johnson, San Antonio REALTOR, San Antonio Homes For Sale (Coldwell Banker D'Ann Harper REALTORS®) almost 4 years ago

Joe you ran into bad luck.  It is rare that a cash offer which is close to one requiring a mortgage gets beat out.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) almost 4 years ago

Cash doesn't always win. Sometimes it's the owner occupant going FHA with only 3.5% down who gets the house, especially if the offer is presented in such a way that the seller feels a connection to the home buyer and none to the investor meanie who demands a discount.

Posted by Elizabeth Weintraub Sacramento Realtor Top 1%, Put 40 years of experience to work for you (RE/MAX Gold) almost 4 years ago


Your post makes a great point on competing with a cash buyer.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) almost 4 years ago

 A good buyer's agent asks the listing agetnt what's important...and to the Best of the Buyer's ability ...writes the offer to match that...it isn't always money that is the priority.

Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce (EXP Realty 414-525-0563) almost 4 years ago

Hi Joe.  Cash offers can be beaten.  One just needs to know what is important to the seller.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) almost 4 years ago

Good Morning Joe,

I had a buyer who wrote a letter to the seller upon my recommendation. Her offer was accepted over the cash offer. The price difference is $5000.

It was an estate too. I found out from the realtor that the seller's heirs would rather sell the property to non-investors.


Posted by Maria Gilda Racelis, Home Ownership is w/in Reach. We Make it Happen! (Home Buyers Realty, LLC-Manchester, Bolton. Vernon,Ellington) almost 4 years ago

Joe, many cash offers are the winning bids around here too, as the contingency period is usually only a week, and buyers can close quicker.

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (House to Home, Inc. - Denver Real Estate - 720-231-6373) almost 4 years ago

I have seen cash lose to a financed offer for just a little margin. I think asset managers don't always know what they are doing.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) almost 4 years ago

Joe, two months ago, my seller accepted a financed offer vs cash, terms were a lot better with financing. Cash is not always the king.

Posted by Beth Atalay, Cam Realty of Clermont FL (Cam Realty and Property Management) almost 4 years ago