“CASH ONLY BUYERS!" Is that REALLY in your best interest as a real estate seller?

The paradox of why many times, NO, it isn't. It's actually best for property sellers AND BUYERS to accept financed offers too.

I've noticed something consistently among the public when talking about housing and affordability. Many people strongly dislike (even loathe!) investors buying homes and turning them into rentals. People understandably want homes to go to owner-occupants instead. But here's the irony I hear quite often when a seller reaches out to me: "I want a cash buyer. I don't want to deal with financing." As a real estate broker, it pains me to hear this for two reasons:

1. The pool of buyers shrinks.

Limiting a sale to cash buyers ONLY severely limits their buyer pool, which reduces competition and tends to lower their final price. In a balanced market slowly leaning toward buyers, cash offers are not coming in high anymore, even from investors.

2. Owner-occupant home buyers never even get a chance. Ouch!

First-time buyers who could purchase the home at today's market rate are pushed out. I understand the concern: the buyer not qualifying for their mortgage loan. But most financed deals actually DO close. In my experience, and national data shows, roughly 95% do. Thus, home sellers often net less while inadvertently shutting out the very buyers they'd want to help.

Most of the time, the best way to help homes stay in the hands of owner-occupants is simply to allow the full pool of buyers to compete. You're also likely to get the best price for your home by doing so. That's the paradox.

What do YOU think? Are you concerned with younger or first-time buyer affordability in your neighborhood? Or do you just want to reduce any and all chances of a buyer not being approved for their loan, even if you leave money behind? Contact us to discuss your options for buying and selling a home in Central Florida.