Is cash the king? That is the number one question by our international buyers who do not need a mortgage.
We work with buyers in the local and international level that look for New York city condos as investment, vacation home, or for son & daughter without borrowing from the bank. As all saying cash is king, and this is true, in this competitive market place especially post-COVID, being an all cash give you the competitive advantage to possibly win the bid if other buyers needs financing if the offer price match with others.
In 2020 during the height of pandemic, there were many people moved away from New York, and years later, many are moving back to this vibrant city, the Real Estate market has been active and busy. New York city is a city full very successful professionals and high income entrepreneurs and businessmen & businesswomen, in industry such as finance, fashion, culinary and etc. In our own sales, we are selling all cash one/two bedroom units at $1M-$3M range to international or foreign investor buyers investing over $8M all in cash.
In this market place, about 80% of our buyers are all cash with no financing needed, serious and motivated buyers. Another question that asked by the buyers are “How much discount can they get since they are paying all cash?”
To be specific, here are several determined factors on the amount (%) of discount a cash buyer can receive.
WHAT IS THE TERMS OF YOUR OFFER? This apply to some new development condos. Some new construction condos to eager to make a sale, sometimes will offer buyers’ incentives. Some of the buyer incentives perhaps are giving buyer some form of gift cards, some will offer credits on part of the closing cost, this all depends on how the new construction condo is selling, if they are selling well, then most likely there will not be any incentive. With these incentives, they also count as part of the ‘discount’, even if the discount is not directly off the sales price, it is still a good way to receive some perks if the developer is motivated.
WHERE IS THE LOCATION OF THIS CONDO? Many of our buyers are interested in some of the best neighborhoods such as near Central Park, Union Square, TriBeCa, West Village or convenient locations. These neighborhoods are prime and internationally well known neighborhoods in Manhattan, there are many other all cash buyers also looking the perfect home in those neighborhoods, there will always be more buyers than housing inventory in these specific neighborhood. When and if a fair priced condo comes up on the market and it is in move in condition, there is a good chance that there will be multiple offers in place and other all cash offers, therefore, the seller will entertain and accept likely the highest price offer if all offers are cash.
CLOSING DATE – If the condo is a resale unit with an individual seller not a developer or sponsor, with an all cash offer, the closing can take place 30-45 days depending on that condo board approval. If the seller is motivated, they will be looking to close as soon as possible, this means if you are all cash, and your funds are ready, then there is a good chance of negotiating with seller an ideal price since it is an all cash and can close as soon as possible. If this condo is a brand new construction and it is completed ready to move in, then the condo can close within 10 days if all documents and attorneys are ready, this vary from project to project.
On the other hand, if you are flexible on your neighborhood preference, we do have a list of condos that have very motivated sellers that would be willing to entertain and negotiate with reasonable All cash offers.
Many all cash buyers work with us because we are able to protect our buyers’ interests and negotiate many favorable terms for our buyer, our all cash buyers are always delighted with our savvy negotiation skills and refer their friends and families to us.
It is year 2024 and we are seeing a lot of activities already in sales. It is always good to start the conversation early, send us an email today, we can come up with a plan that fits your time line.