So you finally got an offer on your home. The close of escrow is in 30 days. You can put a deposit on your the home you just made an offer. In fact, when the seller tells you that your purchase cannot be contingent  on the sale of your home, you say ‘no problem’, the offer is a cash-offer. Call the movers; right? Wrong!

I don’t want to take the wind out of your sails. But No, wait just moment.

There is a new, somewhat surprising, trend happening in the greater Phoenix real estate market where buyers are making cash-offers with no intent of closing in cash.

First of all, Phoenix real estate is selling. Buyers are making offers on Scottsdale real estate and homes in Peoria, Glendale and Gilbert.

Typically, the offers come on homes that are either short sales and bank owned homes (REO).  As a result, when Scottsdale homes or Paradise Valley AZ homes are priced at such a steep discount, there are often multiple offers.

Eager buyers, sensing a great deal, are fearful of losing out on their offer, so to make it more attractive to the buyer, they make it a cash-offer. When, in fact, they have no intention , or ability, to close in cash.

Is this illegal? No! Unethical? Maybe. Nonetheless, it is happening.

Here’s what to do to protect yourself if you are selling your home and want to make sure a cash-offers is legitimate.

1. Ask for proof of funds – Although, a buyer may very well have the funds available with no intent to use them to close, it is at least , a deterrent and at best some confirmation of financial capability of the buyer.
2. Ask for larger earnest deposit – if the buyer is planning on a cash close, a larger earnest deposit should not be intimidating.
3. Demand a second deposit after the inspection period of larger more significant amount .
4. Clarify breach and possible financial remedy in counter-offer if buyer does not close in cash

I know this is an aggressive stance for sellers to take in the sluggish Phoenix real estate market. However, if you have a home that is attracting offers, you need to protect you best interests.

Do not accept offers purely based upon price. You need to give yourself the highest chances of closing. If the property does not close, you are more than one month down the road. We all know home prices can drop significantly in one month. Thus costing you more money. More importantly, you are likely losing the other potential buyers.

Make sure you use an Phoenix AZ real estate agent or a Scottsdale real estate agent who is experienced in writing counter-offers and protecting the interest of sellers when negotiating offers.

Best of luck and happy selling.

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Copyright © James Wexler *Be Careful of Cash-Offers on Scottsdale Real Estate*

Contact James Wexler (480) 221-8080 for your Phoenix AZ| Scottsdale AZ Real Estate needs

If you are listing your home as a short sale in Phoenix Arizona or Scottsdale Arizona make sure you hire a Phoenix Realtor or Scottsdale Real Estate agent who is experienced with short sales and bank owned transactions.