Cash is everywhere in Austin real estate. A hefty percentage of the sales I have worked on this year have involved all cash buyers.--no financing. In fact, even in multiple offer situations, I have seen more than one buyer with a cash offer. In one instance, all 4 bidders had cash. The seller couldn't even give the cash buyer priority, because they all were cash buyers!
I wondered...is this how it is for everyone? Other agents and brokers tell me they are working with quite a few cash buyers too. But is it just in the upper price ranges? or is cash flowing across all price bands?
I have the answers for Travis County.
Austin Condominiums are most likely to be paid for with cash--31%. The most likely price range for an Austin condo cash buyer? Under $250,000. That's right, half of 2013 Austin condo sales below $250k are to all cash buyers. Condo financing is harder to get, this may explain why buyers don't bother, and just pay cash.
Austin Single Family homes draw cash buyers 17% of the time. The most likely price range to find cash buyers? Under $250,000, just like condos at 24% of all buyers--but Austin luxury homes priced $1MM-$2MM are almost as likely with 23% of sales being cash.
Austin home buyers between $500k-$1MM get a mortgage in all but 16% of purchases--the lowest percentage of cash buyers. Ultra luxury buyers in the $2MM and up range are getting a mortgage in all but 18% of purchases--the second highest percentage of cash buyers.
In raw numbers, that is 3,000 buyers who paid cash for an Austin/Travis County home or condo in the first 9 months of 2013--about 22% overall.
How does Austin compare? 30% of Los Angeles buyers pay cash, 65% of Miami buyers, 50% of Las Vegas home buyers, 25% in Minneapolis.
Cash is king to sellers. And the king rules in about 1 in 4 home sales. If you have it, offer it, and hope nobody else is offering it too. If the competition has cash too, be prepared to pay up, the seller will want every penny he can get! Or get creative with other aspects of your offer to make it stand out.
Contact me anytime to pay cash for Austin Real Estate.