More Homes Selling to the Highest (Cash) Bidder

Westchester County’s housing market has strongly favored sellers in recent years, with many buyers forced to offer above the asking price just to stay competitive. According to my research, 56.2% of homes in Westchester sold for more than the listed price last year.  With all-cash offers becoming more frequent,  HousingWire is reporting that New York ranks second in the nation with 40.4% of purchases made in cash. It begs the question: What makes cash offers so appealing to sellers?

1. Fewer Risks: No appraisal and mortgage approvals are required.

2. Can Close “As-Is”: The ability to close with issues like open permits or code violations which lenders will typically require to be resolved.

3. Timeline: Can adjust closing dates easily to accommodate a seller’s needs since they’re not tied to a loan schedule or bank approvals.

Ralph’s Take

Research from UC San Diego’s Rady School of Management found that all-cash buyers pay about 10% less on average than buyers using mortgage financing. While that figure may be a bit high based on my experience, it’s clear that cash buyers generally save money compared to financed buyers. That said, part of my job is to carefully structure every offer to present it in the strongest possible light, whether it’s all-cash or includes a mortgage contingency, to maximize the chances of making a deal.

Trivia: Which state led the country in all-cash sales? Find out at the bottom.