Cash Is King In Brevard Real Estate Sales
By McCoy Freeman Group // December 6, 2013
Cash sales accounted for 44% of Brevard county single-family home sales in October
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BREVARD COUNTY, FLORIDA – While reading a real estate market “report” from a local website I noticed a major inaccurate statement.
The report stated that cash sales accounted for 10 percent of the real estate market here in Brevard County.
As a full-time Realtor I knew this was incorrect right away.
This would indicate that about 90 percent of sales would have been financed by banks or private money investors which would affect our real estate market in different ways.
Here are the facts according to the most recent report from Florida Realtors for Brevard County:
• Cash sales accounted for over 44 percent of single-family home sales in October 2013. Cash sales for town homes and condos had a market share of over 67 percent.
Here is what I see happening in Brevard:
Private equity firms and other investors are looking to buy before prices go much higher. These all-cash buyers are typically investors that renovate and quickly resell or rent out the homes. Also, retirees are flocking to the Sunshine State with cash in hand.
This makes it more difficult for first-time buyers or those who rely on mortgage loans.
A typical mortgage loan requires many steps to be satisfied before closing can occur such as an appraisal, verification of buyer’s ability to reply the loan, inspections for FHA and VA loans and other underwriting requirements.
Loans usually close within 30 – 45 days from the date of contract acceptance.
CASH SALES ACCOUNTED FOR 44 PERCENT OF SINGLE-FAMILY HOME SALES IN OCT.
Have you heard the statement, “Cash is King?” Here’s why:
Cash sales accounted for over 44 percent of single-family home sales in October 2013. Cash sales for town homes and condos had a market share of over 67 percent.
• The only qualification needed from a cash buyer is a Proof of Funds statement from their bank stating they have the funds matching or exceeding the contract amount.
• Cash buyers are able to avoid loan origination fees, the cost of a property appraisal, some closing costs and other lender imposed fees. Also, there usually is not an “appraisal contingency” attached to most cash offers.
• Cash buyers can bypass everything including waving the right to inspect the property and close within 1 – 2 weeks. Although I always highly recommend to any buyer to have the property inspected by a certified inspector, some cash buyers waive this contingency to make the offer more attractive to the seller.
As any real estate professional worth their salt knows, if cash sales only accounted for 10 percent of the market here in Brevard then prices would not be rising as much as they currently are today. Homes would be sitting on the market much longer.
ABOUT THE AUTHOR
Bobby Freeman, a life-time resident of Brevard County, has been a top Realtor in the area for two decades. In his first year as an agent, Freeman received a Rising Star award from his Brokers. Since then he has achieved numerous sales awards and has recently been presented with the prestigious RE/MAX Hall of Fame Award.
Freeman, Jennifer McCoy and Nikki McCoy Freeman are family partners for RE/MAX Elite’s McCoy-Freeman Group. Together they have more than 30 years of extensive experience in all aspects of the real estate industry and have sold over $200 million.
Among McCoy-Freeman Group’s achievement are RE/MAX Hall of Fame, RE/MAX 100% Club, Certified Distressed Property Experts (CDPE), Accredited Buyer’s Representative (ABR) and voted Best Realtor in Brevard County.
The group has been featured in many news publications including CNN Money Magazine, CNNMoney.com, WFTV 9 ABC News, Coastal Condo Living, & Hot Retirement Towns Magazine and SpaceCoastDaily.com.
For more information log on to BrevardRealtyConnection.