Are cash Boston condo buyers still in play? Yes, they are. January can be the perfect time to put a home on the market. We have sold more Beacon Hill homes to cash buyers in January than in any other month. Home buyers who plan on getting a home loan often wait until after they get an income tax refund before they buy a house. That is why March 15th is considered an ideal time to put a house on the market.
Quick sales happen all year long and so do cash sales. Putting your home on the market in January can lead to a higher sale price, a shorter time on the market, and a cash offer.
Money is money but with a cash offer, there is no appraisal. There are fewer steps that the buyer and sellers have to go through. There is no waiting for underwriting approval.
In the last few years in Boston condo for sale market, all-cash offers experienced a boost in popularity. The market was on fire, and cash was sometimes necessary to win.
If you’re considering buying or selling a Boston Seaport condo in 2022, you might be wondering how hot the market is now and whether or not cash offers are still winning.
Well, we know that the Boston condo for sale market is cooling very slowly, but supply is still outpacing demand. We expect real estate prices to continue to rise—just not as quickly as before.
With all this in mind, we put together this 2022 guide to cash offers. We’re going to run through what an all-cash offer is, how common they are now, and how to win in a cash-is-king environment.
An all-cash offer is when a buyer is able to pay for a Boston condominium for sale without taking out a mortgage. They might truly have enough money sitting in their bank account, or they might be getting the cash in some other way, whether it’s liquidizing assets or borrowing money (but not against the property, as with a mortgage). A cash buyer usually pays with a certified check or a wire transfer.
Boston condo sellers tend to love cash deals for several reasons. There’s no waiting for the mortgage underwriting process or other paperwork to go through, and closing is much faster with cash. Cash is also a sure thing; you don’t have to worry about the buyer’s financing falling through, whether it’s because of a total denial or a low appraisal where the buyers don’t have the extra cash to supplement the mortgage. Overall, a cash sale is simpler, faster, and less risky for the seller than a financed sale.
According to the Zillow Consumer Housing Trends Report 2021, “In 2020, 28% of buyers said that they paid for their home in full without a mortgage. In 2021, that share grew to about a third (32%).” According to the April 2022 REALTORS® Confidence Index Survey, cash sales were at 26% as of April 2022. With a solid quarter of sales going to cash offers, you want to have strategies to win in an all-cash environment.
According to analysis by Redfin, all-cash buyers are four times more likely to win in a bidding war. If you can’t swing a cash offer, though, here are some ideas that might help push your offer to the front of the pack:
- Consider waiving the financing contingency. According to Redfin’s report linked above, this makes your offer 31% more likely to win.
- Conduct a pre-inspection. From the same report, this improves your offer’s chances by 25%.
- Write a “love letter” to the sellers. If all the other factors are close, your personal story might help sell your offer!
- Bid at least 1% over cash offers, if you can.
We hope these tips are useful to you as you make a bid for your next Boston home!
One last note—to get the cash needed to win the bid on your next home, you will likely need top dollar for your current home. Helping you do that would be to avoid realtor fees, costly repairs, and even the time it takes to stage and put your home on the market. To get all of that working on your side and to guarantee a cash offer on your current home, we have a great solution for you…
Where is Ford Realty Located?
Ford Realty is located in 137 Charles Street in Beacon Hill