Buyers are making fewer cash offers - What does that mean for you?

If your house is on the market, there may be nothing sweeter to your ears than hearing the buyer wants to make a cash offer. Cash cuts through a lot of the paperwork and shaves off some of the anxiety that builds up during negotiations and closing.

But as housing market remains healthy and prices continue to climb throughout the country, cash offers are becoming increasingly rare.

According to CoreLogic, a company that collects data on housing trends throughout the country, 29.3 percent of U.S. homes were paid for with cash in June of this year, down from 31.8 percent a year earlier.

In 2011, cash sales in the U.S. hit their peak with 46.6 percent. This was in many ways due to the economic situation in the country at the time, a period when people struggled to qualify for loans and more investors bought up homes, hoping for a big payoff down the line.

These explanations certainly account for the decline in cash sales. As the market improves and the economy recovers — freeing up credit — people are able to secure the loans they need to buy a home. This means more homebuyers out there, and fewer and fewer of them need to use cash to buy home.

A competitive edge for buyers

So what does this trend mean for the average homebuyer or seller?

Well, for home sellers, it's less likely that you'll get an all-cash offer. But with over one-quarter of homes being purchased with all-cash offers, it's still a possibility.

Homebuyers able to make cash offers are in luck. Because so many sellers are happy to see cash offers, they are often willing to accept a lower price. And with fewer cash offers coming in, you'll be in a strong position to negotiate and get the home you want for less.

For more advice on selling your current home or buying your next one, talk to a Coldwell Banker Hedges Realtor® today. They know the market and can help you get your money's worth.

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