Who’s they?! Well, in places like Miami & Orlando, Florida where I’ve done the majority of my business, around 50-60% of those buying real estate are buying CASH and I know for a fact that it’s happening in many cities throughout the U.S.
We have experienced a rush of buyers from around the world wanting to buy investment property and they have the cash. Believe it or not, there are quite a bit of buyers with cash who are not investors, but buyers looking to find their new primary residence or second home.
As a real estate broker, I see all types of buyers both financing and with cash. They are looking for properties of all price ranges and sizes. The biggest difference these days is the competition. Who is dominating the market? Cash buyers, of course.
One may argue that a well qualified buyer (financing) is a sure thing too and they tend to spend a little more because they are financing, which could give cash buyers a run for their money. Truth is, because of the turn the market has taken and the competitive prices in real estate today, real estate is selling in many areas for asking price or more and THAT keeps the cash buyer in the top position when it comes time for a seller to accept or reject an offer. Another point is that even if a cash buyer makes a lower offer, it tends to be considered as much (or more) as the higher offer requiring financing. The seller believes there is less chances for the deal to fall through.
In short, if you as a real estate agent, are not targeting investors, international buyers or cash buyers period, I recommend jumping into it, because this ‘trend’ is just starting and my team and I see this as the big wave in real estate for a while. I will be releasing a short report very soon offering some hints and tips for targeting cash buyers. Make sure to follow my blog so you don’t miss it.
Follow me on Twitter/CarlosVHerrera and make sure to follow the blog here. Once you follow my blog, as a thank you, I’ll send you my “7 Tips & 10 Links to Business Building for Real Estate Agents” FREE!