Cash speaks volumes in this market. And when many short sales and foreclosures are being confronted with multiple offers Bank's love a sure thing. And a Cash deal means YES this is going to happen. No VA or FHA rules that at the last minute might halt the process….just good old green and be done with that confounding property once and for all.
And unfortunately there are many properties that just will not fit within guidelines of government backed loans. In a market where financing is tight this just might give your offer the edge that a financed offer does not afford.
If you do have the cash you might just get yourself a fabulous deal. There certainly are pitfalls, one of which is your offer might offend the seller so much they do not want to deal with you. But if you are dealing with a bank or a lawyer and emotion has nothing to do with the sale you might just have hit the jack pot.
Last year alone half of the houses sold were in the distressed category and from what The National Association of Realtors has projected this trend is not going to abate any time soon. This is clearly a problem for appraisers who have to take into consideration these homes even in a regular transaction. Often the appraisers just cannot find the comparative sales to support a NON –DISTRESS sale and the deal dies and the home goes back on the market. That is another reason that one third of all sales involved investors who were not hampered by appraisals and financing….. CASH is king!
Credit where credit is due…..this blog was inspired by a reprint from Florida Realtors News & Events of an article in the
Star Tribune Minneapolis, Minn.