The King Has Been Dethroned

By
Real Estate Agent with Alain Pinel Realtors

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.

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Ryan Nunnally - Alain Pinel Realtors - Silicon Valley, California  www.RyanNunnally.com   www.facebook.com/nunnallyrealestate                                                        

Ryan Nunnally can be reached at (408) 568-4552 or via email at rnunnally@apr.com

 

 

Comments (3)

Kamal Salim
Lokation Real Estate - Weston, FL
A Superior Level of Service !

Of Course, and remember that for the seller every sale is cash. The buyer's lender is the one that grabs the tab. Cash is still king, because there is no financing involved, and if he can show you the money, that is one contingency out of the way. If the buyer is financially sound, it does not make sense to accept less money, just because the buyer is paying cash.

Apr 18, 2012 10:22 AM
Marnie Matarese
DWELL REAL ESTATE - Sarasota, FL
Showing you the best of Sarasota!

Same thing is happening in our area with multiple offers on a shrinking inventory and cash does not always rule!  The sellers are willing to wait for the mortgage to come through and are sick of the very, very low offers that often accompany the cash offer.  It is heartening to see home buyers who cannot pay cash finally getting some of the homes.

Apr 18, 2012 11:26 AM
Ryan Nunnally
Alain Pinel Realtors - Los Gatos, CA

You do make a good point about the cash offers usually coming in low, Marnie. It is nice to see those deserving home buyers, get their homes. Good luck out there!

Apr 18, 2012 03:05 PM