This is the first post in my three-part blog series on buying a home with cash and the discounts that are possible when doing this.
Paying cash for a home in Northern Virginia can often give you a good deal, but not the kind of deal that cash buyers were able to get during the first couple years that followed the financial crises of 2008. When the real estate market crashed, credit was tight, and it was very difficult for homebuyers to get loans. This meant that there were fewer homebuyers out there, and sellers often had to turn to cash buyers if they really wanted to get their home sold.
Buying a Home With Cash – How Has The Northern Virginia Real Estate Market Changed?
Over the past few years, the Northern Virginia real estate market has been doing very well, with low inventory and bidding wars once again becoming the norm during peak seasons. As a general rule, sellers in Northern Virginia still, of course, prefer buyers who pay with cash to buyers who are getting a loan, simply because they know they won’t have to worry about the buyer’s loan falling through.
Additionally, one way that people buying a home with cash make offer more appealing is by waiving their appraisal contingency, which means that there is one less variable that sellers have to worry about. Good listing agents advise their seller clients that fewer variables mean a greater chance of a successful settlement, and cash purchases help eliminate variables. Buying a home with cash also means a shorter closing period, which is generally preferable to most sellers.
What Happens When a Home Gets Multiple Offers?
However, despite preferring cash buyers, sellers in today’s Northern Virginia real estate market often find themselves in a position of power, with multiple offers to choose from. Contrary to the poor credit market in 2008 and 2009, it has become very easy for buyers to qualify for loans. If you were selling your home and you had a full list price offer from a well-qualified buyer who was getting a loan versus an offer for $30,000 less from a cash buyer, which offer would you want to accept? The financed offer, of course.