Does paying cash for a home net the buyer a discount as it might for other transactions? The answer: “It depends.”

If the seller is in a big-time crunch, an all-cash deal can expedite the sale. Also, offering to pay cash gives the buyer less wriggle room, which could comfort a nervous seller.

A seller with minimal equity may be looking for a more generous deal than an all-cash buyer is likely to demand. Also, if there is a bank involved in the deal, it may not be so enthusiastic either because an all-cash transaction could undercut the reason banks are in business.

Source: The Wall Street Journal, June Fletcher (11/04/2010)

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