BobS
Not only will all-cash offers often trump higher offers with financing, they can get you spectacular deals from desparate-to-sell owners, including REOs.
In 1997 I bought a Normal Heights 2-bedroom 1926 bungalow with a rotten foundation for $46,5OO. Had to pay cash since lenders would not lend on it to me or anyone else. Sold it 4 years later for $256k after collecting rent (to a contractor–I never did fix the foundation).
In today’s environment with lenders even more skittish, cash will rule.
The discount you are suggesting is way too modest. Offer $100 off and hold to it. You will get this property or another one like it eventually.
