How private equity is changing housing

> Who’s going to win in a bidding war for a three-bedroom in a suburb of Cincinnati: a single-income family with a scrabbled-together 10 percent down payment or a Wall Street LLC offering cash?

I don't see why the seller would care. They're getting a check at closing, that's all they care about.

I mean, if there's a question about whether the buyer will actually be able to get financing, that could be a concern. But most buyers are pre-qualified (at least if they're working with an agent). The main reason they would not get financing is if the appraisal came in lower than the sale price.

Closing certainty is a major reason people will take all-cash offers over financed ones. Even if you're pre-approved for a loan.

A cash offer will still fall apart if the appraisal comes in too low, I would think. Or does the term "cash offer" imply that no appraisal will be done?

Appraisals are generally done to ensure that the loan guarantor will be able to recover their investment if the party taking the loan defaults. Therefore, cash offers don't perform appraisals. Cash offers lower risk for the seller and provide fastest time to close the transaction.

Probably the latter, the appraisal is typically mandated by the bank issuing the mortgage.

There is no purpose for a cash buyer to pay an appraiser to appraise a house. They have already decided to pay the price, so who cares what an appraiser thinks?