According to a report from Redfin, homebuyers who offered all cash won the bidding wars in 2021 which caused it to be the best strategy to beat out other buyers. Thirty-one to twenty-five percent won bids with waiving finance contingencies and inspections but these are not as effective as cash because they are so common.
Many buyers are not able to offer an all-cash deal. So what can they do to sweeten the pot? Redfin says to offer the asking price and waive the appraisal contingency. This will set buyers apart from the buying crowd. If this is a route you want to take, look for homes under your budget.
“I let buyers know what to expect and try to prepare them, financially and emotionally. The home they’re touring will probably sell for significantly over asking price,” said Amanda Peterson, a Fort Worth, TX agent.
All-cash offers are not a way most first-time homebuyers can go. Cash offers are more common with investors. “Investors are coming in and pushing out the first-time buyers,” said Lawrence Yun, chief economist for the National Association of Realtors.
“The investors picking up properties at the expense of first-time buyers means that there is less chance for realizing the American dream, particularly among moderate-income families.”
