Cash Sales Curb First-time Home Buyers Ability to Purchase

                                                         CASH IS KING!!!!

According to the National Association of Realtors, cash sales make up at
least 30% of home sales today versus 10% of the home sales ten years ago.

Here's why:

Cash offers provide sellers a simple and easy way to sell their home.  No need to worry about
a buyer qualifying, the home appraising or the sale falling apart at the last moment.  The
closing costs on cash sales are low and the seller doesn't have to participate in the first
time home buyer's closing costs.

Cash offers also provide a great avenue for investors to purchase homes and attain a good
rate of return on their investment.  Since banking interest rates are so low and the stock market
unpredictable, investing in homes at current low selling prices makes good money sense. 

With the housing market experiencing low inventory and cash buyers/investors
snapping up everything in sight,the ability of a first-time home buyer
(who requires a financed loan) to purchase a home in a multiple offer scenario
is very very low.   It is not unusual to see multiple offers for a home where three
or more offers are cash and 3 or 4 offers require a loan.  Guess which one the seller
will pick....CASH! It's not "always" about the price.

One of the best avenues for a first-time buyer to pursue would be to search out new home
builders.  These new home builders provide a variety of financing options as well as absorbing
the buyer's closing costs in the price of the home.  It does take a while for the home to be built
but it's much better than making offer after offer after offer only to get shut out by an investor's
cash offer.