Why, I'm asked often now, is cash such an important term to sellers today? Isn't it the same net for sellers when you finance?

The answer is no, it's not the same net. With many homes going over list price, a seller accepting the highest offer may run into trouble when the buyer's lender sends the appraiser out to assess the value. It's difficult for appraisers to keep up with value in an ascending market, so the appraisal may come in low and put the sale in jeopardy.

A cash sale means no appraisal, so no one else determines the value but the seller and the buyer. Therefore the sellers net can actually be higher with no risk to the seller in maintaining the offer at the same price as when it was submitted. Minus the lender, a cash offer can also close very quickly. I had one transaction with an offer on Monday that closed that Friday.

What to do when competing with a cash offer? There are terms that one can offer within the contract even when financing to address the challenge of the appraisal. There are multiple opportunities within the sales contract that can also appeal to the sellers needs. Long story short, though cash offers are around 25% in some areas of Portland, remember that 75% of offers are being accepted with financing.

Don't give up hope, a good strategy on how to use the contract to your advantage when constructing an offer can still be very persuasive.