Meet the Cash Buyers
An Inman News Special Report
By Andrea V. Brambila
This may be a buyer’s market, but not all buyers are on equal footing in the homebuying process. Cash is still king, and those who have it are taking full advantage of the comparatively speedy and reliable closings they offer sellers.
Cash buyers have made up at least a quarter of home purchasers since the beginning of 2010, a figure buoyed by more affordable home prices and a substantial volume of distressed properties.
According to the National Association of Realtors’ monthly Realtors Confidence Index survey, buyers paid all in cash in 15 percent of transactions in October 2008, the first month the association conducted the survey.
By May 2010, an estimated 25 percent of transactions were in cash, up from 12 percent in May 2009. And from January through April this year, cash buyers’ share of transactions hovered at 26 or 27 percent, according to the NAR survey.
Most commonly, say real estate professionals who spoke with Inman News, cash buyers include parents buying homes for grown children, move-up buyers, retirees buying second homes, and foreigners buying vacation homes.
And many are investors -- people seeking to buy a property for rental income, or “fix-and-flip” buyers who seek to make quick fixes to the property and resell it within a short period of time. According to NAR, investors made up 14 percent of buyers nationally in May.
This report includes trends, statistics, and profiles of cash-buyer transactions.
Inside:
Part 1 Cash is still king
Part 2 How the fix-and-flip investor thinks
Part 3 Retirees find a second home
Price: $79.00
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