Until recently, I would regularly hear the popular phrase, "CASH IS KING". Not half a year ago, this was in fact the case. This was especially the case, in the distressed property market. When I would submit an all cash offer on behalf of my buyer/s, they would almost always have the upper hand in the negotiations. The offer would have to be reasonable of course, but this is a discussion for another blog.
Here in Silicon Valley, the market has dramatically taken a turn for the better. Some may say, more so for the sellers than the buyers. Recently, I have written offers for multiple cash buyers. Cash or not, I educate my clients on the current market conditions. Every time we will offer WELL above asking, and still not stand a chance.
In the market I work, it has been said that at least for now, THE KING HAS BEEN DETHRONED!!!
Sellers are now gaining the upper hand. The new king is the almighty number. If there is confidence in the purchaser's ability to secure financing, and appraisal issues have been worked out, the homeowner is shooting for the stars in hopes of that magic number.
This is not meant to discourage the cash buyers out there. It is still a wonderful time to invest. The royal family (cash) still retains some power, but can no longer rule as it has in the past.