The Carvajal Group Blog

1 in 4 homes bought with cash! How to compete with cash offers…

September 15th, 2011

Last month the Austin Business Journal released an article(link) stating that 24% of homes purchased over the last 12 months had been purchased with cash.  This is without a doubt a testament to the tightened credit markets as it is much more difficlut to qualify for a mortgage in the wake of the financial crisis. Cash,whether saved or borrowed from a family member, is the only option for many buyers.  Another reason for the increase in cash transactions is investors flocking to real estate due to the recent volatility in the stock market.

A healthy Real Estate market like Austin is attractive to both investors and owner occupant purchasers.  I have seen several listings lately receive multiple offers within a few days on the market. When a listings is priced right, it receives a lot of attention as soon as it hits the market.  There are  a few methods for making your non-cash offers more attractive even if you are using financing.

Normally the listing agent discloses when there is there is more than offer, but will not  and should not provide any information on the other offers.  Chances are good in multiple offer situation, the property will sell for very close to the list price.  If you are obtaining a mortgage, you may want consider offering slightly above the list price in order to make your offer more attractive.  It is also a good idea to set the closing as soon as possible.  A buyer with cash can usually close very quickly so if you can get your loan approved and be ready to close in less than 30 days, that will also make your offer more attractive.

It is of the utmost importance to have an agent with experience in the local market on your side.  For more information on the Austin Real Estate Market or to start your home search, please contact the Carvajal Group today at (512)419-7770.

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