In today’s Sarasota market, a significant number of buyers pay for their properties with cash - it is in excess of 60% of purchases.  

You might wonder what is the significant difference between cash and a financed transaction? The biggest difference between the two from a seller's point of view is the potential risk of losing a buyer.  In a cash transaction, typically there may be a "due diligence" period in which the buyer can cancel the contract and in most cases will be able to get his/her deposit back.  That period is generally 15 days or less.  After which, if the buyer cancels, the seller likely has a claim to the deposit.  In a financed transaction, the buyer may not only has that same potential "due diligence" period up front, but will likely have a finance contingency that is typically 30 days in which, should the buyer have an issue with finalizing their financing, they likely will be able to cancel the contract and get their deposit back.  The potential loss of time is the real driving issue that make cash offers more attractive in most cases.  

And a cash offer can potentially provide the seller with a quicker, or more convenient time frame for closing because they are not bound by the lenders underwriting process. 

If a financed buyer  wants to increase his/her odds of getting a contract, here are some things to consider:

  • Get preapproved and provide a copy of the preapproval letter. 
  • Work with a good lender.  We recommend a local lender.  Most listing agents recognize that a lender who is not familiar with the local market and Florida transactions can slow down the process. Sometimes the bigger financial institutions are not the best for this market. 
  • A larger down payment or deposit sometimes can influence a seller's perception of a financed deal. 

There are other nuances and issues that may impact the seller's willingness to work with a financed transaction. We have a lot of experience with both buyers and sellers and can help you navigate the transaction process.