This odd yet growing trend is ultimately good for the housing market in Florida, and is essential to keeping it healthy. A shortage of first-time homebuyers has long been the bane of the industry: people coming into traditional home-buying age are struggling to follow their Baby Boomer parents’ path of buying a starter home. Wealthy, all-cash buyers are picking up the slack and keeping the market alive, snapping up non-distressed properties in stable areas that big, institutional investors aren’t necessarily interested in.
So what does this mean for you? Here are some useful takeaways, even if you’re not aiming to throw around cash for a lavish second home in the Hamptons in New York.
-Making an all-cash offer on a property makes life much simpler for you: no loans to pay off and no mortgage to deal with.
-All-cash offers can also finesse sellers, even if the offer is lower than others. A cash offer from you means no worry about your loan or mortgage qualification for them.
-You can start saving now to buy with cash when you retire. Imagine retiring and not having to worry about paying off a home again — ever!
Making cash offers for homes isn’t for everyone, and it’s a bold move. But it’s clearly gaining popularity, and is working very well for almost half of homebuyers in the real estate market today. Contact your real estate agent and discuss whether this unusual but effective negotiation tactic can work for you.