According to NAR's report (4/28/2011) on pending sales of existing homes, 35% of the deals getting done are with cash.  What does this mean?  In our opinion, it means that about 1 out of every 3 homes sold are bought by individuals or professionals for investment or redevelopment.  Short-term (flipping, rehab) and long-term (rental, new construction) are both viable purchasing strategies that are driving these high numbers of “for-cash” transactions.

Teardowns in general are mostly cash deals (about 80%), whether by individual buying to build their own custom home or by professional for his own account (speculation).  There are two factors that support this:

1.                  Financing products for this type of purchase are scarce.

2.                  The buyers of this property type, whether pro or individual are usually well capitalized.

So, if you’re selling this type of property, chances are you won’t have to worry about what is arguably the biggest drag on the housing market – the ability for your buyer to find the money to buy.  Today, cash is king!

Brian Hickey, founder, broker, teardowns.com

 
Post is included in group: Building Your Niche
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3 Comments on NAR say's Cash is King

APR
28
2011
431,004 Points 10 Featured Posts Outside Blog

Thanks Brian for sharing this information about paying Cash. This will also benefit a couple clients I am working with at the moment.
12:38pm • #1
145,246 Points

I can personally vouch for a large percentage of transactions being all cash!
12:57pm • #2
APR
30
2011
710,875 Points 2 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

I too am seeing a large amount of cash deals.  Some into the hundreds of thousands, not just investors, but savvy Buyers looking for a great deal.
11:31pm • #3


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Brian Hickey

Hinsdale, IL

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teardowns.com

Address: 53 Ogden Ave, Clarendon Hills, IL, 60514

Office Phone: (630) 654-4100

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