They say “cash is king” when it comes to real estate. For those try to sell homes and flip houses, it’s cash buyers who rule. They are vitally important in the current market and can make moving property far easier. So how do active real estate investors, agents and other property owners find more cash buyers for their deals?
The Vital Importance Of Cash Buyers Now
It’s true that real estate transactions just go more smoothly when homebuyers are paying with all cash. Closing times are shorter, there are fewer sleepless nights wondering what will go wrong with the loan application at the bank and they tend to buy as-is. However, having cash buyers on tap is even more crucial than that in today’s housing market.
House flippers, real estate teams and investment firms can far better systemize their businesses and scale if they have a large database of repeat cash buyers. A large number of properties coming into the tight market are also foreclosures and other physically distressed properties or those with permit issues that can prevent buyers from using conventional mortgage loans to acquire them. They need to be bought, improved and “recycled” to reduce neighborhood blight, shore up local government finances, create jobs and even out the property tax burden.
However, down payment on home purchases appear to be shrinking, as is the percentage of cash buyers in the market. According to the National Association of Realtors Economist’s Outlook, the share of cash buyers dropped to just 21% in 2017. That compares with a national average of 31% between 2011 and 2013 and as high as 57% in Florida in 2012.
The big question is how to find those who still have the cash to buy and line them up so you can go shopping for deals with confidence — or how to move the home you have to sell now.
1. Online Marketing
There are many online marketing tools for driving inbound cash buyer leads. It can take some learning, experimenting and investment but may…