If you are set on getting top dollar for your home – and in cash – then a lot of market areas are going to leave you disappointed. But in 2016, here are some things to keep in mind.
Here in Phoenix, cash sales have dropped like a rock from the days when bank-owned properties and foreclosures were selling for steep discounts. As many as half of all home sales were in cash – which came from institutional and mom-and-pop buyers who pulled their money out of the stock market.
Most of those bank owned homes have long ago been sold (we bought some of ‘em ourselves…) That doesn’t mean the foreclosure market has disappeared, but it does mean that cash buyers have put the brakes on spending too much on existing homes.
For instance, RealtyTrac’s U.S. Home Sales Report in 2015 says there are just three areas in the country where cash sales are still hopping.
- Homosassa Springs, Florida (61.4 percent)
- Naples, Florida (60.1 percent)
- Columbus, Georgia (54.9 percent)
But let’s look even further into the report. Company VP Daren Blomquist was quoted as saying that cash sales are also on the rise in cities that have “traditionally been magnets for foreign cash buyers.” Cities like high-priced Boston, low-priced Las Vegas, and the astronomically-priced cities of San Francisco, Seattle, and New York made the list.
In Arizona, home sellers are getting better prices, but that means cash buyers like us have had to re-evaluate and restructure. For instance, our new focus is on buying seller-financed notes to buy out note-holders who would prefer a lump sum. We’ve also added buy-and-hold rentals for the long term.
If you sold your home on a note in the past few years – whether it’s performing or not – our asset buyers can give you a quote on what you can get for it. Cash up front is worth more today than future cash, so contact us today!