Sellers often wonder what the benefit of selling to an all cash real estate investor or builder is. Whatever the financial vehicle is, financed or not, the seller gets their proceeds at the end of the transaction either way. While that is certainly true, there are other considerations.
First, there are properties that simply can not be financed (appraisal condition C6). This could be because they have structural issues, are not habitable, or won't appraise (although for the most part the last condition is not relevant to this discussion).
Structural issues can mean cracked foundations while habitable may refer to the presence of mold. Even in a city with a many luxury properties, you do find some real estate with substantial deferred maintenance.
If you are considering selling to an all cash commercial buyer here's some things to consider.
Builders typically look to acquire lots at 30-33% of the final project cost. So, if they will build a $3M property, they may want to pay no more than $1M (although there are many instances where they go higher.) If the lot is on a hill, expect something closer to 25% but if it has an ocean view or is on the Avenues or the Esplanade, builders will pay more. Often a lot more (no pun intended). As prices are escalating, many builders are "banking" land and holding on for an even more opportune time to sell. So, if there is a habitable house, or better yet a tenant in place, and the property can be leased, that is attractive to a builder as well.
Flippers look for fixers that have "good bones" and need either extensive cosmetic updates or can be enhanced by the addition of more square feet, bedrooms, baths, etc.