9 ways to crush all-cash buyers
No financing in about half of all home sales
Here's one big reason someone offering to buy a home in cash is attractive to a seller: Much of the hassle that comes with selling a home — dealing with the buyer’s financing — is eliminated.
If you’re shopping for a house, there’s a good chance you’ll compete with all-cash buyers. In February, 43.3% of U.S. home buyers paid in cash, according to RealtyTrac, a California-based firm that tracks real estate trends.
These are financial institutions scooping up investment properties to rent out or foreigners, most likely Canadian. International buyers account for about 6% of home sales, but more than half pay cash, in part because they can’t get mortgages.
Still other all-cash buyers are people who have accumulated equity or savings. The proceeds from a home sale combined with savings can be enough to pay cash for that next property.
If you’re relying on a mortgage to buy a home, try these smart moves to get your purchase offer accepted over an all-cash buyer’s offer.
By Amy Fontinelle
Interest.com Contributing Editor
April 16, 2014