The past couple of years saw a rise in all-cash offers on homes. The market was hot, and cash was often necessary to win.
Now, in 2023, we’re in a much different market. If you’re looking for your next home, you may be wondering: are all-cash offers still winning? Do you need to be prepared to pay cash to get your dream home?
Here’s our 2023 guide to all-cash offers. We’ll run through what an all-cash offer is, whether they’re still happening, and how to make a winning offer in 2023.
What is an all-cash offer?
An all-cash offer is when a buyer pays for their new home without a mortgage. They may have the cash in their savings account, or they may be using an alternate method of getting the cash (such as liquidizing assets or getting a loan from family). A cash buyer usually pays with a certified check or wire transfer.
Cash sales are great for sellers, as you can close much faster and with much less uncertainty. Sellers don’t have to worry about the buyer’s financing falling through if the mortgage isn’t approved or if the appraisal is low and the buyers don’t have the extra funds to close the gap between the mortgage and the sale price.
Are all-cash offers still winning?
Let’s look at the 2022 Zillow Consumer Housing Trends Report.
According to this report, “Most sellers (62%) said that at least one of the offers they received was all cash or did not include a financing contingency. The fact that more than three quarters (78%) of buyers purchased with a mortgage, though, suggests that buyers who finance with a mortgage can still compete with cash offers—assuming their offer is sufficiently appealing in other ways.” In other words, all-cash offers are no longer necessary to win, as long as you make a solid offer that meet’s the seller’s needs.
How to make a winning offer:
Zillow’s report tells us that sellers care most about money and time. 55% of sellers consider maximizing profit their top priority, while 35% consider selling within their ideal timeframe their top priority. Zillow notes that “taken together, these pieces of information suggest that a cash offer can still fail if a seller feels that the offer is too low or risks delaying the sale (insufficient earnest money or the offer being contingent on the sale of the buyer’s home, for example).”
So, to make a winning offer, you need to focus on making your offer high enough, putting up enough earnest money, and ideally not making your purchase contingent on the sale of your current home. Selling to MarketPro Homebuyers can help you meet all of these guidelines. Here’s how:
Set yourself up for success by selling to MarketPro.
At MarketPro, we pay cash for homes in any condition. Especially if you’ve built up significant equity, selling your home to MarketPro sets you up for a successful next purchase—even if your current home is distressed.
MarketPro can give you the cash you need to put up substantial earnest money and make a solid offer. Working with MarketPro also means you will not need to make your purchase contingent on the sale of your current home. You can set up the sale of your home to us and then schedule the closing to match the purchase of your new home.
Work with MarketPro:
We’ll give you a fast cash offer for your current home just as it is now; no repairs, no upgrades, no inspection, no commissions or fees. You can even choose your exact closing date. Our team will walk you through your quote, including a review of what your home would likely bring on the open market.
If you’re in Washington, D.C., Maryland, Virginia, Pennsylvania or Florida, we’d love to show you how easy and stress-free the sales process can be. Contact us today for a same-day, no-pressure quote.