Many investors and home buyers expect that if they go into a deal with all cash offers, they can at least have 10% price discount and can win the deal without a fight. That might be true a year ago when people’s confidence in the housing market was low and they were cash strapped. Now? When everyone is holding as much as cash you do going to an open house, you are no longer the king. I went to a few deals recently that they were more than 5 offers. And at least 2-3 offers were all cash offers and they were at least the same as, if not above, asking price.
Wall Street Journal also reported that all cash purchases have been increasing across the country, data including Stockton, San Francisco, San Diego. Read the full article here.