Cash offer vs. financed offer in Coquitlam — how each plays.

Cash offer — Pros for buyer

No financing subject needed. Faster close possible (7-14 days vs. 30-90 typical). Sellers prefer certainty. Often wins multi-offer scenarios at slightly lower price.

Cash offer — Cons for buyer

Money tied up in property. No mortgage interest deduction (residential primary not deductible anyway in Canada, but relevant for investment). Liquidity reduction.

Cash offer — Pros for seller

Certainty. Faster close. No appraisal risk. No financing-failure risk.

Financed offer — Pros for buyer

Leverage — buy more home with the same cash. Keep liquidity for renovation, investment, emergencies. Standard in 90%+ of BC residential transactions.

Financed offer — Cons for buyer

Stress test must pass. Appraisal risk (low appraisal = lender reduces mortgage). Financing-failure risk during subject period.

Financed offer — Cons for seller

Appraisal risk (if low, deal renegotiates). Financing-failure risk during subject period. Slightly slower close typically.

How financed buyers compete with cash

Pre-arranged unconditional approval (very rare but possible). Larger deposit. Subject-light offer. Match the seller's preferred close.

Cash offer premium

Cash offers often command a 2-5% price discount or win in multi-offer scenarios. Sellers value certainty in active markets.

Verification

Cash offers are sometimes verified by 'proof of funds' — bank statement showing the buyer has the funds. Listing agents may ask for this with cash offers.