This is the second article in a blog series on the pros and cons of a cash purchase in real estate. You can check out Part 1 here.
Cash Purchase in Northern Virginia Real Estate – Just How Powerful is it in the Current Market?
…An example of cash purchase discounts decreasing since 2008 is my wife’s and my own home, which just sold a couple weeks ago in a bidding war. The best offers that came in were a zero-down financed purchase and a cash offer with no appraisal and no financing contingency for $10,000 less than the offer with the loan. We ended up choosing the zero down financed offer because the buyer was very well qualified, and we preferred to increase our net proceeds by $10,000 rather than go with a lower cash offer.
However, despite many sellers being focused on their net proceeds, certain sellers are particularly motivated and prefer a cash contract with a quick closing. It really just depends on the seller's circumstance, and how much the quick closing and no loan is worth to them. Again, the more work the property needs, the more a cash offer is typically worth to a seller.
I hope this blog series was helpful as you think about your Northern Virginia real estate goals for the coming year. In this competitive market, it’s important to have a real estate agent who is a market expert and great negotiator. Call me at 703-462-0700 or email me at DarrenRobertsonHomes@gmail.com so I can go to work for you!