No cash no deal.. anything else beware
When I was on my boat hunt in that general area I did not feel that I was going to get an extra 5k off as a cash buyer.Ok maybe this has already been answered, but I searched and didn't find a definitive answer.
In the buying and selling process (any used big ticket item) a buyer paying cash is more appealing to a private seller than a buyer that has to secure/finalize financing. My question is, what is the point of diminishing returns on that appeal?
For example, you have a $5k daysailer you're trying to offload. A guy showing up wanting a break because he's paying cash isn't likely to get one, because most every potential buyer would be paying cash.
Same as above, but the boat is now a $300k cruising cat. I would assume that a guy who can stroke a check for the purchase has leverage over someone who must secure financing.
So along that line of thought (correct me if that's not accurate), what about a cash buyer in the $50k market? The $75k market? The $100k market? In those ranges does a cash buyer have a leg up over most other buyers, or are all the serious buyers paying cash?
If it makes any difference, say the boat is a 70's or early 80's "classic plastic" monohull in the 38-42' range and priced reasonably for condition/amenities. I realize no ones getting a loan with that old of a boat securing the debt, so thinking second mortgage, HELOC, etc would be a borrower's main options.
That's probably most of it. The other issue is even a can in hand, as is where is offer will still need to acquire insurance, which will normally require a recent survey anyway. So even on a 'I have a briefcase of cash' type of offer there will still generally be a lee time between the contract signing and change of posession.Thanks for replies so far. What I mean by cash offer is "let's schedule survey asap and I can pay on the spot after acceptable survey results.". Vs " I can pay after acceptable survey AND the bank finalizes my loan."
I think BarryL hit on an idea that might be very obvious to most of you but isn't so obvious to those of us who haven't purchased a large boat before- there isn't likely to be more than one potential buyer at a time, so if you give someone a week or two to come up with financing you aren't likely to miss out on another buyer who has funds immediately available.