There was a time when the seller of a property simply chose the higher of two or more competing offers. These days, a higher bid isn’t enough to close the deal. Limited inventory, tighter lending standards, and tedious paperwork pushes many sellers to look beyond the price offered. Most sellers eagerly accept a solid offer from a buyer who is both able and willing to pony up cold hard cash for the property in question.
In the Miami Beach real estate market, cash is definitely king right now. Motivated sellers know that a difference of several thousand dollars doesn’t really matter if the deal will be closed in a month rather than three. During those three or more months that it can take for a bank-financed purchase to close, the seller is still paying a mortgage, insurance, utilities, and possibly maintenance or association fees, among other expenses. Those monthly costs can really start to add up, and there could be additional snags along the way because of the requirements financial institutions impose.
There is so much demand for Brickell condos and Miami Beach condos that an offer from any serious cash buyer will likely trump a similar offer from a buyer seeking to obtain financing. Of course, buyers that are pre-approved by a lending institution shouldn’t be discouraged because there are other ways to show a seller a serious commitment to sealing the deal, such as waiving financing or inspection contingencies or plopping down a hefty down payment. The bottom line is that buyers should be thinking of creative ways to craft attractive offers, including coming up with a good chunk of cash to sweeten the deal.