All-Cash Home Sales Are On The Up

By TRD Staff - June 03, 2021, 12:45 PM (Twenty-five percent of all sales were all-cash deals in April, up from 15 percent from a year ago (iStock).) --------------------------------------------- In a housing market with an inventory squeeze, overwhelming demand, and skyrocketing prices, there are ways to get ahead. One of those ways? Paying in all cash. More homebuyers are catching on: Twenty-five percent of all sales were all-cash deals in April, up from 15 percent from a year ago, CNN reported. -----------------------------Some buyers with the means will put up a cash offer to close the deal quicker, then decide later if they want to opt for a mortgage and take advantage of low-interest rates. One agent told the publication that financed offers have to be at least 1 percent higher than the all-cash offer to seal the deal. These offers often close faster than those awaiting mortgage approvals. It’s also less of a risk for sellers who worry a financing deal could fall apart. Tomer Fridman, a Compass agent-based in Beverly Hills, said the ultra-high-end has always seen cash deals, but recent windfall from IPOs, company sales, and the cryptocurrency frenzy have led to more.----------------------------- “It is wild how many people have that much money,” Fridman told the publication. For those who don’t have the option to pay in full, not all hope is lost: Buyers who need mortgages can still make all-cash offers with help of an online lender like HomeLight Cash Offer, a real estate technology firm and lender. If a buyer qualifies for a loan, the firm evaluates the home and then makes an all-cash offer on the buyer’s behalf, CNN reported. If accepted, the company then buys the home and holds onto it while the actual buyer secures traditional financing, the publication added.----[CNN] — Cordilia James