House Hunting Amidst Cash Buyers?
If you are a buyer scrambling for a home in our low inventory year end market, don't get to thinking you can't compete with cash buyers. Buyers with little or no experience doing this, might feel like giving up if they heard from their agent that the listing agent had a cash offer. Why? What is the listing agent actually saying?
Cash offers rarely do what they should do in a seller's market where inventory is limited and go in at or above list price with no contingencies. Instead, these cash buyers somehow believe that there is some sort of magical in the cash itself. These buyers will usually come in below list price.
Since it is all cash to the seller, even a mortgage that may take two or three weeks longer to close, why wouldn't the seller wait for that additional money? It's not costing them anything but utilities, taxes, insurance and HOA to wait.
Competing with cash offers is not as challenging as you may think. You may have re-evaluate the need every contingency available to you to add into your offer. But don't let the fact that there is a cash offer intimidate you. You can compete if you really want the house.