I was speaking with a prospective buyer this morning who had called regarding one of my listings. He mentioned he was “willing to pay cash if the price was right.”
My response to him – cash is not really the incentive he thinks.
You see most serious buyers are pre-approved. They have already gone through the process of applying for a mortgage and have been pre-approved for an established amount.
The lender has basically said "find the property you want to purchase within these parameters - the property gets an untainted, clear title and appraisal and your financial situation does not change."
A seller may prefer cash but a lender who has approved a loan is paying with cash as well.
The process is primarily the same from a seller standpoint with the exception of the appraisal requirement.
As a buyer do not expect a significant negotiation advantage. Depending on circumstances the seller may give a bit of a break but I would not expect a “fire sale” price.
As to whether or not a buyer should pay cash is a question for their CPA. Of course at the present time there is still a mortgage interest tax deduction.