Re: Real Estate Q: reasonable discount for all-cash (vs. mortgage) offer??
Great question.
Being able to close quickly and headache free is the main motivation for sellers wanting to go with an all cash offer. You didn't say if this was an investment or a primary. If it's a primary residence, then don't get stuck on having to get a certain % off because of the cash offer. You are going to live there, focus on finding the property that fits for your life, not the absolute 100% leave no money on the table deal.
If it's an investment property, then having cash can certainly make you money. There is no hard and fast %, but 5-10% off fair market value isn't abnormal. You will just have to face the fact that you may have to go through a number of deals before you find a really motivated buyer where the difference between 7 day close and 30 day close means the world.
Also, look into short sales.
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