We’ve just about rebounded from, what I will call, an “Investors Market.” The Houston area was one of those markets that was like a feeding frenzy for investors during time when foreclosures, shorts sales and the market, in general, were driving down prices incredibly. Out-of-state and even international investors were buying up properties in our area with their “sweet cash deals.”
As buyer confidence started to return near the end of 2012, not only investors, but would-be owner/occupants were touting cash offers because we live in a world where “Cash is King!” Well, not always. With rising home values and attractive interest rates, we are experiencing a HOT real estate market in Clear Lake City, League City, Friendswood, Pearland, Seabrook, Kemah, Dickinson and the entire Houston Bay area. While cash offers are a great enticement, especially in a down market, it doesn’t necessarily make them the best offers.
Cash buyers tend to believe they can submit low-ball offers because they are paying all cash. In the current market, bringing all cash to the table doesn’t put the buyer in a better bargaining positioning with regard to price. After all, unless it involves seller-financing, the seller gets cash anyway. There are very few advantages to the seller when it comes to accepting a cash offer over one using bank financing. A cash offer may be a good choice for a seller that needs a quick close and wants to reduce the risk of losing a contract because of appraisal value or other financing contingencies.
At the end of the day, the seller will choose the offer that best fits his objectives. With his Realtor’s assistance, he will consider his own circumstances, like when he needs to have the house sold. He’ll also consider the qualifications of all buyers, as well as any contingencies that could delay closing (i.e. the buyer has a home to sell). So, before making a cash offer consider all factors that could persuade the seller’s decision, especially if it’s a home you really want. Don’t lose out on your dream home by making a low-ball offer.
Thinking of buying a home in the Clear Lake City, League City, Friendswood, Pearland, Seabrook, Kemah, Dickinson and Houston Bay area? Call me so that I can assist you with evaluating the market and putting together the best deal to help you land the home of your dreams.