Vent: I thought cash buyers had all the leverage until I tried to sell to one

I had this house in Phoenix I was trying to flip and a cash buyer came in offering $15k under asking with a quick close. I figured they knew they had me by the short hairs since I needed the money out quick. But I called their bluff and said I'd go with a conventional buyer instead even if it took longer. The cash buyer came back two days later and matched my original price because they wanted that specific block near the new light rail stop. Guess sometimes they want the deal more than you do. Anyone else run into cash buyers who folded when you pushed back?

2 comments

2 Comments

white.seth1mo agoTop Commenter

Did they give you any reason why they wanted that specific block so bad? I had a similar thing happen in Denver where a cash buyer was dead set on a property near a new transit hub. They came in low, I held firm, and they ended up paying full price plus covering some closing costs. The thing is cash buyers are just like anyone else - they have their own deadlines and targets. Sometimes they need to move money by a certain quarter or they're trying to fill a portfolio gap. The trick is figuring out if they're bluffing or if they really have another property lined up.

white.seth1mo agoTop Commenter

Oh man that Denver story is exactly what I needed to hear! I actually read this article the other day about how some cash buyers are basically just playing a different game than regular folks. They said most cash buyers have some kind of internal deadline like needing to spend a certain amount by end of quarter for tax purposes or to meet investment quotas. That totally explains why they pushed so hard on this one block. I think there's something to that idea of them needing to fill a specific portfolio gap like you mentioned. Maybe they had a mandate to acquire properties in that exact zip code or near that specific school district.