There is a growing trend of property sales in Jacksonville and throughout Florida selling for cash, as opposed to the now-standard method of purchasing a home through a mortgage from a lender. After the trouble with the housing market over the past five years there are many people who are hesitant to contact a bank for a mortgage.
Investors who have the ability to pay cash are seeing more benefit in buying a property outright than going through the hoops of working with a lending institution. Since 2009 when severe difficulties with the housing market were revealed, requirements to obtain a mortgage have tightened significantly. There are many investors who would still qualify for a mortgage but are not willing to go through the paperwork and long-process of securing one.
Cash sales are faster, and because of that many buyers have found that they can get a better deal on a home by making offers with cash. Those selling homes know that a cash offer is secure and real. There is no risk of a lender falling through, and this may be an incentive to agree to a lower price.
In some counties around Florida, as many as 7 out of 10 property sales are being completed in cash-only transactions. In Jacksonville there is an increasing number of cash sales, though the percentage isn’t quite as high as other areas around the state, like Brevard.
For the average home-buyer, making an offer in cash may sound pretty out of reach. The median home-price across the country is just under $200,000, and that is a lot of cash to put down on a property. Of course, many of those who are buying in cash are doing so to make an investment—which means they are especially drawn to foreclosures and short sales.
Those who are not ready to buy in cash should still explore the market. With the rise in cash sales, many lenders are ready to work with potential home-owners to make a good deal on a low-interest mortgage. When you are ready to start looking at properties, contact us.