Cash is King in Real Estate
As a real estate agent in today’s market, life has been interesting to say the least. We went from no properties selling during the peak of the recession to a sudden surge of buyers looking to grab bargains believing the market is at the bottom.
It is still difficult to buy, unless you have cash. Cash is King in Real Estate today. Sellers have been stuck for years, unable to sell even after reducing their home’s price over and over again. A cash buyer comes along and sellers are willing to slash their prices even more to simply have the option of moving on.
Another reason cash is king in real estate today is due to all the foreclosures. Property owners are angry and desperate. The property they bought in 2005 or 2006 is suddenly worth half of what they paid, if they are lucky. Maybe they lost their job on top of it and now can’t pay that high mortgage. So they are forced out of their dream home.
What happens next isn’t pretty. Home owners in desperation are selling everything they own, including the property’s kitchen sink to get enough money to move and rent something else.
When a kitchen has been gutted, including cabinets, counter tops and the kitchen sink, a lender will not lend on it. Plus, the foreclosing bank has no desire to fix anything. After all, they’ve already lost money on the house. So the only way to sell a gutted house is “cash only”. If you have cash, you have the power in this market, Cash is King.
