Does the Ability to Pay Cash for a Home Purchase Matter During this Strong Sellers Market?
Of course it does! It matters a LOT! We used to proclaim that ‘Cash is KING’ and sellers were all over the cash Offers - even lower than list prices were coveted. Sellers knew that buyers obtaining a mortgage could easily have an issue during the lending process - small or complicated - and the deal was toast. Sellers had to start all over again and then struggled to get anywhere near their list price again. So, cash WAS king!
The market slowly began to stabilize and mortgage requirements were stricter and pre-approval letters were strong. Buyers submitting Offers with a mortgage option were on a more level playing ground than cash buyers. Then, cash buyers offering sub-list prices were no longer overly appealing; sellers knew buyers with mortgages were also going to get to Closing - and often they offered the higher prices!
Cash buyers realized they needed to compete and now, we’ve come full circle with the king of the buyers being cash - and lots of it! They are competing with the best of the buyers obtaining mortgages, waiving appraisals.
How much does the ability to pay cash for a home purchase matter in 2021? Homebuyers who make all-cash Offers improve their chances of winning a bidding war a whopping 290%. Our market is so competitive that any sub-list (or ‘lowball’) Offers in a multiple-offer situation will almost certainly fall to the bottom of the stack of Offers! Most cash buyers now know that they have to come in strong - and most savvy cash buyers DO!
As long as inventory is this low, cash will be king. So, let’s talk with your lender
If buying a home is in your plans this spring, it’s time to start the process. Get a jump on the homes hitting the spring market in Charlotte and then give me a call - (704) 491-3310.
© Debe Maxwell | The Maxwell House Group | RE/MAX Executive | CharlotteBroker@icloud.com | Does the Ability to Pay Cash for a Home Purchase Matter During this Strong Sellers Market?