Will paying all cash help you win the Bid?

Can cash, help you dodge the bid?

As a home buyer, an all-cash offer on a home, may help you stand out when competition is tight. Let’s face it! Cash purchases, are in fact much less risky, with fewer chances of financial hang-ups and low appraisals, and tend to make for fast transactions.

Unlike the 5% all-cash deal over the first two months in a typical year, the number has soared to 20% this year. Investors, People looking for second homes and international purchases, are majorly taking the all-cash route, and also some older buyers, who use the money that get by selling their previous property according to analysis by realtor.com.

“If you have to compete with other potential buyers, an all-cash offer puts you in a more competitive spot,” says Danielle Hale, chief economist at realtor.com®. It “can make you a more attractive buyer.”

Realtor.com® pinpointed the following metro areas with the highest increases in cash sales in January and February of this year compared to a year earlier (pre-pandemic). The following areas had the highest number of cash sales in that period:

1. Reno, Nev.

• Share of cash sales in January and February: 51% (up 29% from a year earlier)

2. Racine, Wis.

• Share of cash sales in January and February: 40% (up from 18%)

3. Greenville, S.C.

• Share of cash sales in January and February: 38% (up from 14%)

4. El Paso, Texas

• Share of cash sales in January and February: 15% (up from 13%)

5. Clarksville, Tenn.

• Share of cash sales in January and February: 30% (up from 12%)

6. Torrington, Conn.

• Share of cash sales in January and February: 41% (up from 11%)

7. Kahului, Hawaii

• Share of cash sales in January and February: 40% (up from 11%)