Home About Us The Settlement Process Services & Costs Blog Contact Us
Join our email list


Aug 10, 2014

If you don't have cash DON'T make a cash offer

Some people seem to think that buyers will be more likely to accept a cash offer and therefore that they can offer a lower price and save some money on the purchase of a property.

In the first place, I have seen no evidence that sellers ARE more likely to accept cash offers. Financed property deals are now so engrained into the real estate market that sellers overwhelmingly regard them as the norm. Which of course they are.

Second, due to the dishonest practices of some cash buyers, sellers have come to regard cash offers with suspicion.

So, if you want your cash offer to carry any weight, here's a couple of things that might help:

  1. Offer a HIGH DEPOSIT (at least 10%). Remember, as you are making a cash offer, this means that you have ALL the money required to complete the purchase, at your disposal, so providing 10% of it up front shouldn't be difficult.
  2. Provide evidence that you have the funds. Provide a copy of a bank statement, or a letter from your bank manager confirming that sufficient funds are on deposit to complete the purchase.
  3. Remember that you will also need to pay for extras such as

If you can't complete settlement, your seller may well be entitled to keep the deposit, as you have effectively defaulted on the contract.

If you enter into a cash contract without having the cash, you run a very strong risk of acquiring a reputation for dishonest dealing which is likely to precede you in other dealings, to your great disadvantage, and with the added possibility of legal action being taken against you.

If you are a seller wondering whether to accept a cash offer, the above should  also be of great interest to you.

DISCLAIMER: The above advice is intended to provide a summary and is not intended to be relied on in any particular case. It should NOT be construed as legal advice. For detailed advice specific to your circumstances you should seek specific advice from an appropriately qualified professional.

Return to Blog

Independent • Local • Thorough