Stories from the Condo Market…

As we have been saying for several months now the real estate market is HOT, HOT, HOT because of low interest rates and lack of inventory.   Crazy enough though, the big player in the game right now is the CASH buyer!  Five of our last six closed transactions have been all cash deals.  Three of them have included 12 month lease back options to the sellers so they have time to find a replacement property.

In “par” and “buyers” markets cash is King and will get you a significant discount on price.  In today’s sellers market, cash is simply getting you the deal, sometimes.  Many times our multiple offers have multiple cash buyers and the price flies past the list price and the terms turn greatly into the favor of the seller.  The 12 month lease back is a great example.  Having the luxury as a condo seller to sell your home today, get your cash out and become a non-contingent buyer is HUGE!  Without this option, you really have no chance to buy a new home because sellers will rarely if ever consider a contingent offer in today’s market.

Our last transaction on 8322 Truckee Way experienced the multiple cash buyer scenario and it played out like this.  List price was $398,000.  We had 6 offers total with two all cash offers.  We counter the two all cash buyers with favorable terms for the seller and a sales price of $402,500.  One of our cash buyers crossed out the $402,500 and wrote in $405,000 on their own.  They were happy to overpay for the property by even more than we asked them too… it’s craziness!

Moral of the story, if you’re thinking about selling your home but are concerned about finding a replacement property… the ball is in your court.  Sellers make the rules in today’s market and if you want more money, ask.   If you want better terms, ask.  If you want a multiple offers and to make your home the next record sales price, ask us to list your home! :)