You would think that during a time when inflation is just shy of 8.0% that cash would fall out of favor. However, when it comes to home buying cash is still king, according to Redfin’s latest report…(Redfin)
- Putting in an all-cash offer made a buyer’s offer 334% more likely to be accepted in 2021.
- Waive financing contingency made an offer 31% more likely to be accepted and pre-inspection increased a buyers odds by 25%.
Amanda Peterson, a Redfin agent in Texas, said she prepares her clients for the tough competition and advises them to get their finances prepared…
- “We have detailed conversations about how much over asking price they’re willing to go and which contingencies they can waive. If a buyer has a low down payment or another scenario that doesn’t typically win a bidding war, I’ve had success explaining buyers’ unique situations to the listing agent and making it clear that their finances are reliable and the deal will close.”
It’s probably more important than ever that real estate agents are preparing their clients for the current environment. There is going to be a lot of competition, you are going to need to be prepared to bid more than listing, and you need to have your finances in order. Having a respected pre-approval letter is more important than ever. At the end of last week, the Wall Street Journal reported on creative ways buyers are trying to get their offer accepted. And while a Lego millennial falcon is exciting, sellers really only want one thing in a transaction. Assurance that the deal will close. You don’t just want a good offer you want an offer that you know will close and nothing assures that more than a good pre-approval letter or cold hard cash.