Buyer / Seller · Strategy
Cash offers and financed offers play differently in Coquitlam transactions. Cash buyers have leverage; financed buyers can compete with smart structuring. Here's the actual mechanics.
Verified · Buyer / Seller · Strategy
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.
No pressure. No obligation. Just a 30-minute call to talk through your specific situation.