Friday, January 24, 2014
Curious about Cash Transactions?
The Northern Virginia real estate market is competitive and will only become more so as job opportunities continue to flow into the area. Buyers are struggling to purchase their dream properties and often have to deal with multiple contract situations. How many times have you heard a neighbor, friend or relative say that their contract offer was rejected in lieu of an offer by a "cash Buyer"?
According to the KCM Blog, roughly 25% of all transactions in the state of Virginia were cash transactions in September 2013. If we reviewed the data for Northern Virginia the numbers would probably be slightly higher.
No need to get discouraged as Sellers are not rushing to grab those cash buyers as fervently as they used to. Logically speaking, a well qualified buyer that is willing to pay more (and in all likelihood will be approved for a loan) is the better deal. At closing, the money from a cash buyer or a loan-approved buyer is the same.
In years past, sellers were often advised to grab that cash buyer and hang on for dear life since "cash is king" and there are no loan approval steps to fret over. I've noticed a change from this thought in most recent years.
Last year, while listing a property that needed updating, each cash buyer felt they should pay less for the property since they had "cash". The cash buyer offers were anywhere from $10,000-$25,000 less than the offers from non cash buyers. The seller waited for the right buyer to pay the price the home was listed for. The seller eventually received a full price offer and was content.
Markets change over time in each locality. Call a professional to have a candid discussion on your real estate needs. A professional realtor not only has his/her experiences with the current & local market trends yet also the information of many colleagues' experiences. This information can assist you in making the right decisions for the biggest investment of your life.
If you are in the market to buy or sell a home, call me today. A home is most likely your largest financial investment and I never forget it!