There are several opportunities in the real estate investment market in Austin, Texas. Many homeowners find themselves in situations such as trying to avoid foreclosure which require them to sell their homes fast. Many property investors are looking for houses to purchase quickly.
However, from ever-changing financial regulations and interest rates to an economic future that still has a lot of question marks about the direction, it may be headed, home buyers and home sellers are not sure how to proceed.
One simple strategy that real estate consultants recommend to buyers and sellers is utilizing the all-cash strategy.
Why cash is king for property sellers
Sellers who sell their houses through traditional methods (listing with an agent for a market price) discover a number of challenging scenarios:
First, they often have to sink a lot of their own time and cash into their home first in order to get it up to a level that will make it sale-ready. If a home seller wants to do this, that’s fine; but many people lack the time, cash, and skill to make the necessary changes to make their property sale-worthy. So an all-cash offer, although more than likely lower than a market offer, can actually be more valuable by saving the home seller the stress, hassle and cost of having to work on their house before listing it.
Second, homes sold at market prices can often only be bought by those who can get mortgage financing… and sometimes it can take several days or even weeks for a financial institution to grant a mortgage and even then, approval is always a blink of an eye from being lost. Therefore, the seller is left waiting for that period of time while they wait for the buyer to get a mortgage. So selling with cash if extremely fast. Serious home buyers have the cash ready within hours or just a couple days at the most.
Third, financial institutions don’t always grant the mortgages that homebuyers think they’ll grant. Home sellers quickly realize that deals fall through fairly regularly as homebuyers don’t get the financing they were hoping for. Cash doesn’t have to wait for any financing — cash is ready to be used for the purchase.
It’s no wonder that home sellers love cash deals… they can save themselves time and money and they can sell their home fast.
If you’re a home seller and you want to explore the possibility of a cash deal, search for a local cash home buyer in Austin.
Why cash is king for buyers in this property investment market in Austin
Home buyers love cash deals too!
First, cash deals can be obtained often for below-market pricing because of the value provided to the seller of a fast property sale (often “as-is”). Cash assures the seller that the property is accepted the way it is.
Second, cash is fast and there is no waiting. Sellers love the rapid transaction, and buyers love that they don’t have to wait for banks to approve a mortgage.
Third, cash is preferred because it doesn’t cost any more. When you buy a home with a mortgage, you pay interest on that mortgage — often thousands of dollars more than the original value of the home. But if you pay cash, the price you pay is the only amount of money you pay — and not a penny more.