In a booming market the highest bidder gets the home. In other markets it is often the cash buyer that has the advantage over all other interested parties. A buyer that is obtaining traditional financing may need 45-60 days and sometimes more in order to close escrow. From the sellers perspective during this time anything can happen with multiple contingencies available to the buyer. All of the documentation now associated with loans - appraisals, inspections, etc. provides safeguards to the buyer and lender... and these create transaction risk for the seller. The seller has to hope that nothing will derail the sale. Thus, when a buyer makes an all cash offer it is very attractive to the seller even though the offer may be less than other competing offers. In a truly free market the discount a seller is willing to accept from a cash buyer equals the risk the seller feels exists in the deal.
Long story short. Be a cash buyer if you can and still do your due diligence.
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