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New Yorkers and Californians are making the Dallas housing market unbearable with cash offers for us natives trying to buy.
Thats because CA buyers last 5 years were losing out to all cash buyers here.
I think all cash removes the need for an appraisal.
You're right. it is good advice and thank you both.
I recently faced the same issue buying in Austin, Texas. It took 1 year to have an offer accepted.
Our first contract, we used Homeward, which pays cash to the seller on your behalf. When you sell your current house and/or get a mortgage you buy the house from Homeward. In the meantime, you rent the house from Homeward until you close. There is also a small fee for their service, but all cash is an attractive offer to the seller and they may take less, allowing you to cover your costs.
When Covid quarantine happened in March 2020, we were still in the inspection period, so we bailed. Luckily so, because Covid pay cuts happened and we would no longer have qualified for the loan by closing.
Job loss,salary reduction is a huge potential problem with a mortgage, things happen.
In July, we were looking again, and we found a great property and made a full price offer. We were the only bid, which was surprising. We felt it was our dream home, and felt it was worth the price.
Then the appraisal came back $30k low because of the appraisal value of the basement. We were ready to walk if the seller didn't cut the price. We negotiated to $5k over appraisal. I am sure the seller's were angry at their realtor. But low appraisals happen and it can kill a deal.
Finally, when we sold our old house this month, the closing had delayed 6 weeks. The buyer ran up credit cards during Christmas, not smart but common. He scrambled to find a new loan, but again a new appraisal...Sellers hate delays, more property tax and utilities to cover and more time off the market for alternate buyer. Cash offers can close in a few weeks vs the month or more it takes with a mortgage.
Took me 3 years to buy a home in CA. People paying $50-100K over asking and cash.
The hardest part in buying/selling a house is getting to close. Cash offers remove the variable of the third party bank and speeds up the close process (no 45 day mortgage contingency that’s in most contracts).
Putting it another way, If you can close in 2-3 weeks vs 6-7 weeks you save a month of your mortgage payment, taxes, insurance and you can move into your new place sooner. All of this allows for accepting a slightly lesser number.
There’s still a chance you don’t get approved for financing so all else equal, less hassle if the other person already had the cash on hand.
Thanks for this, very helpful
Enthusiast
This summer I lost to an all cash offer that was lower than mine 🤷🏻♀️
Chief
Some cash offers are flippers. They pay cash for the property and use loans for the improvements and then sell.
Rising Star
Cash is king in real estate
Cash removes the appraisal, then removes the haggling, and can lead to closing the deal sooner.