Industry experts will tell you that cash talks when it comes to sealing a deal and it is true there are a number of advantages to going in with a cash offer.

However, it’s not necessarily all smooth sailing when you opt to go in with cash when buying a home. Cash always talks but the price offer talks louder. Most sellers will ultimately still be focused on the price being offered first and foremost.

Sellers do find the prospect of a cash offer appealing, but not at the expense of the final selling price. Buyers often assume they will get a sizeable discount for a cash offer, however they can end up disappointed if it’s used as a tactic on a home that is highly sought after. In the current market where stock levels are extremely low and the landscape is super competitive you cannot assume that as a buyer that cash = discount.

Not many buyers ‘actually’ have cash in the bank. In reality, rather than dealing with a plethora of ‘cash’ buyers, the vast majority of cash offers are usually those who have gone in prepared and had a high level of pre-approved financial backing.

As an agent who is ethically responsible for both sides of the transaction, I also like to caution buyers about being aware of the conditions surrounding a ‘cash’ offer.

It’s important to be aware that a cash offer is unconditional and that you are now legally bound to proceed to settlement or risk being sued for the full sale price, less your deposit if you choose not to proceed.

Although it could be seen as the best option for both buyer and seller, cash offers do not come without their complications. Buyers looking to secure finance to make a cash offer need to be aware that the bank may still require a valuation on the property you are hoping to buy.

With a cash off, the seller is not obliged by law to allow the valuer access to the property. In most case sellers are happy to oblige, however as agents we cannot guarantee that they are and there is no way you can leagally force them – which in most cases means no valuation and therefore no loan approval – you get the picture !

With record low interest rates, many with the means at their disposal are choosing not to let their money just sit in the bank attracting bank fees or find themselves at the mercy of stock market volatility and are instead putting their money into bricks and mortar.

In very soft markets, you tend to see a high level of cash offers as opportunistic buyers look to prey on seller’s desperation. Even though the market has softened in the last 12 months, we are certainly not in that type of market at the moment. With a shortage of stock of good quality homes and an ample supply of buyers the highest offer is still going to win the day for the foreseeable future.

Good quality homes will always be in fashion and will always be highly sought after.