Cash Buyers

The Seattle Times today reported the emergence of all-cash buyers as a force in today's housing market. There did not appear to be anything new in the article - cash has always been king in the real estate market.

But the reality of today's housing market is that many deserving homebuyers - perhaps as many as 50% according to note-buying guru Eddie Speed - cannot qualify for a mortgage. The glut of inventory on the housing market is as much a reflection of the lending difficulties as it is of the housing situation.

If more sellers could offer seller financing, there would be a larger pool of buyers for their properties. Funny how many sellers with the ability to offer seller financing choose not to - despite the fact that their houses sit on the market.

The Times article went on to state that sellers are willing to accept a lower purchase price when a buyer comes in with cash, and does not require a financing contingency. Sometimes these buyers refinance right away into a mortgage, so they have access to liquid cash again. Many of these buyers are investors who have discovered that cash makes them more competitive in having their offers accepted. Unfortunately, the NW Multiple List Service has no easy way to track cash buyers.

One way to track cash buyers is to use a service like List Source to find buyers who purchased in the last three months or so, and have 99% equity in the property they purchased (for some reason List Source will not allow screening for 100%). Convoluted, but it works.

Cash buyers find funds by pulling lines of credit, like Home Equity, or perhaps cashing in stocks or using self-directed IRAs. Some of them use hard money or private money until they can sell or refinance the property just purchased.

Money talks. Always has, always will. It is a powerful tool for both sellers and buyers to use in speeding up transactions.

Sell Houses Fast using the "SOLD" method!

In today's economy, everyone is running for cover hoping to wait outthis recession before it breaks them. Refuse to participate in thisdownturn! There are smart ways to continue to prosper, sell your housein record time, and keep that necessary cash flow spigot open. Excess inventory and falling market prices can be turned to your advantagewith a very simple system that William Bronchik calls “the S.O.L.D. system. “ This is the system that the best investors use, those 20 % of wealth generators who seem to consistently outperform everyone, even in the worst times. Any house can be sold at a fair price within 30 days using this system- even now. The basic principles of the SOLD system are:
S- Salesmanship- how to best market and present your property and close the deal
O- Owner Financing- many people don't have large down payments available, but may be able to buy if the owner accepts part of his equity in payments rather than large cash closings. A larger pool of potential buyers obviously increases the likelihood of a sell!
L- Lease/Options - rising interest rates have resulted in greater rental enthusiasm, with the benefit of higher rental rates. You can lease/option to avoid broker fees and pay no commission upon sale.
D- Dressing it Up- Staging gives your propertythe extra "wow factor" to promote quick sales for the optimal price. Confidence is often the key to success.

Let me help you make your property profitable despite any gloomy economic outlook!