I've Got Cash

A new trend is emerging. More and more homes are being bought with cash. Cash buyers have made up at least 25% of all home purchases so far this year, according to a National Association of Realtors survey. Consider the following:

• In Las Vegas, now known as the “Foreclosure Capital,” over 40% of the closings are cash transactions. Many are retirees and investors are taking advantage of the exceptional values.
• In California, cash sales hit a peak of 30% of all transactions in January and February.
• And in Arizona, 41% of purchases from January to May were all cash.

If you’re a seller, you may be asking, “Why select an all-cash offer over an offer based on a conventional loan?” One of the benefits of selling your home for cash is that the sale will be more likely to close... and close faster. I’m seeing many homes go into contract with 14 – 21 day closings. Some are closing in less than a week. Also, mortgage lender requirements and appraisals are not an issue with cash sales. That all said, if you are selling your home and receive multiple offers, accepting an all-cash offer would probably mean accepting a lower sales price.

If you’re a cash buyer, it is important not to buy just for the best price but for the property. Real estate is a long-term investment for most of us. Having the best property will secure that investment.

For more information contact Aimee Klarich, Realtor Alain Pinel Burlingame