Cash Offers are HOT in Salt Lake City

33% of homes purchased nationally have been with cash so far this year. #Cashoffers have been made by investors, wealthy homeowners, and international home buyers. In fact, over the last 7 years the number of cash offers have doubled.

According to an online article, “Buyer and Seller Characteristics: Cash Sales” posted by Realtor.org, of all cash buyers:

10% were First Time Homebuyers

72% were Investors

56% were Second Homebuyers

18% were Relocation

65% were International Homebuyers

49% were Distressed homes

Cash offers are a good indicator that the more investors are willing to back the current housing market by diversifying their portfolios with real estate rather than stocks and bonds. This wouldn’t happen if investors didn’t think we were in a full housing recovery. This type of investing is contributing to the increase of home prices, which is turning around the housing market.

If Your Home is Listed, What Makes Cash Offers so Desirable?

If the buyer doesn’t have to get a loan, much of the risk is removed from the deal falling apart. You won’t have to worry about the financing possibly not going through, or restrictions right before closing. A cash buyer is clear to close right after you receive the proof of funds.

You won’t have to worry about the buyer having to sell their place before buying yours. I have seen many deals contingent on selling a home totally fizzle a purchase agreement. Even when the market is SLOWLY improving, it still may take a bit for the buyer to sell your home. So you sit and wait. With a cash offer, you’re good to go.

With a cash offer, an appraisal won’t be required by the lender. The decline in the real estate market over the last several years have appraisals coming in lower, even when the current market looking up. An appraisal may kill a deal or send you back into negotiations, if it comes in lower than the offer price.

Cash is King, but you do have to know the cash is there. You will want a proof of funds submitted either with the offer presented or submitted within a certain amount of days after the offer is presented.

Buying or selling in this real estate market can be tricky. You want to make sure you have enough information to make good decisions. That’s how we can help – contact us today!!

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