Is Cash King or Does it Give Some Buyers an Excuse to Make Lowball Offers?

Currently the majority of buyers in Brevard County are buying real estate with cash.

Is cash really king?

Does it matter if a buyer is getting a mortgage to purchase a home? Or does cash make a purchase easier?

A buyer purchasing a home with a mortgage has to be preapproved for that mortgage. They typically are required to get a termite inspection, most get a home inspection, the house must appraise for at least the purchase price. A survey of the property boundaries is usually required. Those buyers have to jump through the hoops that the lender requires of them. And, today some of these hoops can be quite stringent. Some buyers don't make it to closing and today, some houses are not appraising in today's market.

A cash buyer does not have to worry about securing a mortgage. They have the option of whether they get a home inspection and/or a termite inspection. No appraisal or survey is required on the property. BUT, very often we see cash buyers come in with much lower offers, than buyers getting mortgages. And, some sellers are not willing to, nor can they take some of these low ball offers.

I recently had a property priced at $150,000. The house was in move in condition We received 4 cash offers on the house. 3 of the offers were for $80,000 to $92,000. My traditional seller, unfortunately, was taken aback at the offers.

On the other hand, recently we closed a condo purchase with a cash buyer. The buyer opted for no inspections, no repairs, no appraisal and a 14 day closing. The only requirement was that the buyer had to be approved through the condo association for residency. They offered a realistic price, which was a win-win for the buyer and the seller. All in all, it was a smooth transaction... much smoother than some of the lender financed transactions we have dealt with lately.

Apparently, some buyers in Brevard County are realistic cash buyers, as over 50% of over transactions in September 2011 were made with cash.

Sandy Shores, Melbourne FL REALTOR®

Specializing in Residential, Investment and Relocation Real Estate

We have a team of professionals to facilitate your Short Sale.

Melbourne Real Estate / Palm Bay Real Estate

321-253-4545

SandyShoresMelbourne@hotmail.com

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Serving Brevard County Florida for 15 Years

Brevard County Resident for 36 Years

Melbourne, Palm Bay, Suntree, Viera, Rockledge,

Cocoa, Canaveral Groves, Titusville, Mims, Melbourne Beach,

Indialantic, Indian Harbour Beach, Satellite Beach,

Cocoa Beach, Cape Canaveral

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I buy, sell, rent, own and manage Investment Property.

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