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What Cash-Offers and Mortgages Mean for Sellers
Dated: February 8 2021
The current real-estate market favors sellers. Current real estate prices are skyrocketing, average days on the market are getting lower, and listings are being sold left and right. Which is why there are a lot of sellers who are considering listing their properties on the market for a very reasonable price.
In the beginning of the COVID-19 outbreak everybody was sure it was going to be a buyer’s market when it came to real estate. Sellers began to take listings off the market to avoid the buyer’s frenzy and being labelled as desperate and motivated sellers. However, during the course of the second half to the end of 2020, the tables seemed to have turned. Properties are being sold left and right at substantial amounts and investors are trying to keep up with that demand.
For active sellers, a cash-offer on their property always catches their attention. Many sellers prefer cash offers because having the actual funds in their hands is not that far off. One of the disadvantages that sellers see with conventional payment options such as home loans and mortgages is that the deal could fall through based on a buyer’s credit score, denied pre-qualification from a lender, as well as problems arising from delays in mortgage approval. Of course the seller also considers that cash-offers have shorter escrow periods than that of conventional buyers.
There is no doubt that in the current seller’s market, paying an all cash-offer gives the buyer a certain amount of advantage in the eyes of the seller. However, for the buyer’s point of view, paying an all cash-offer on a property that is not up for bid may not be a good idea since as a buyer, you would need some liquidity after the sale has been made. This is protection against any property damage that may arise after the fact.
Statistics say that it is unlikely that any major changes will occur in 2021 in the direction the real estate market is headed for. The Stephanie Woods Team Better Homes and Gardens Real Estate BloomTree Realty 928-237-4455 prescottazhomefinder.com
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