More Buyers Paying Cash to Win Bidding Wars
Cash is often king. Buyers who can make an all‑cash offer on a home can stand out when competition is tight. Cash purchases tend to pose less risk that a deal will fall through from a low appraisal, have fewer financing hang-ups, and tend to make for faster transactions.
All‑cash deals comprised 20% of sales over the first two months of this year, up about 5% compared to a year ago, according to a new analysis from realtor.com®. The majority of cash purchases tend to be investors, people looking for second homes, or international purchases. Also, older buyers are more likely to pay cash since they can often use the money from selling their previous residence, according to realtor.com®’s analysis.
“If you have to compete with other potential buyers, an all‑cash offer puts you in a more competitive spot,” says Danielle Hale, chief economist at realtor.com®. It “can make you a more attractive buyer.”
Source: National Association of Realtors, Realtor Magazine
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