NAR say's Cash is King

By
Services for Real Estate Pros with teardowns.com

According to NAR's report (4/28/2011) on pending sales of existing homes, 35% of the deals getting done are with cash.  What does this mean?  In our opinion, it means that about 1 out of every 3 homes sold are bought by individuals or professionals for investment or redevelopment.  Short-term (flipping, rehab) and long-term (rental, new construction) are both viable purchasing strategies that are driving these high numbers of “for-cash” transactions.

Teardowns in general are mostly cash deals (about 80%), whether by individual buying to build their own custom home or by professional for his own account (speculation).  There are two factors that support this:

1.                  Financing products for this type of purchase are scarce.

2.                  The buyers of this property type, whether pro or individual are usually well capitalized.

So, if you’re selling this type of property, chances are you won’t have to worry about what is arguably the biggest drag on the housing market – the ability for your buyer to find the money to buy.  Today, cash is king!

Posted by

Brian Hickey, founder, broker, teardowns.com

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Rainmaker
529,191
David Burrows
Classic Realty - Fairfax, VA
No Pressure, Just Seriously Devoted to Real Estate

Thanks Brian for sharing this information about paying Cash. This will also benefit a couple clients I am working with at the moment.

April 28, 2011 12:38 PM #1
Rainer
145,246
Sarasota & Manatee Counties FL
SaraMana Properties - QuickFreeMLS.com - Bradenton, FL
QuickFreeMLS.com - Listings In Paradise

I can personally vouch for a large percentage of transactions being all cash!

April 28, 2011 12:57 PM #2
Rainmaker
1,098,899
Evelyn Johnston
Elkhart County Subdivisions, LLC - Elkhart, IN
Super Agent, Probably the Best Agent in the Galaxy

I too am seeing a large amount of cash deals.  Some into the hundreds of thousands, not just investors, but savvy Buyers looking for a great deal.

April 30, 2011 11:31 PM #3
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Brian Hickey

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