Be Prepared to Compete with Cash Buyers

Multiple Offers? Your Competing Buyer Is Likely “All Cash”.

While the Portland market is still enjoying a gracious year over year appreciation rate of 12%, another new phenomenon is the increase in cash buyers.

A new report from Goldman Sachs estimates that the number and the dollar volume of homes purchased with all cash has risen to more than 50% nationwide. While we have not seen this level of activity in Portland, our all cash transactions were recently reported by RealtyTrac to be exceeding 29%. This trend of conservatism is seemingly being fueled by rising interest rates and the bull stock market as homeowners look to eliminate their housing expense in their quest to be recession-proof for the future and diversify their net worth. Additionally, investors are cashing in on their recent gains and broadening their portfolios by owning good old fashioned real estate.

This trend of owners and investors snatching up real estate is contributing towards what, once again, looks to be a robust spring season in Portland real estate sales. Despite higher prices and higher interest rates, we are once again seeing multiple offers on properties which include, in some cases, multiple all-cash offers. But what is rare, is that the buyers are not necessarily looking to negotiate a lower price, due to having the power of cash. Instead, they are using this to their advantage to have their offer selected over the other 70% of offers that require the typical appraisal and financing.

For traditional buyers utilizing financing, this means you better not only be pre-approved for a loan, but you best be prepared to compete and make quick decisions if you find the home of your dreams, as sellers will look at the offer that provides them with the highest price combined with the least amount of risk. So discussing those elements far in advance of finding a great home could prove to be a good strategy, in the event you find the right home and have to act quickly. If you would like to begin these discussions, please contact your ELEETE Realtor today.