What are the chances of getting an all-cash offer when you sell your Novato home? That’s a question some of our sellers ask us when we first meet. And this summer, potential home sellers are going to like the answer.
Erin McGinnis with Team McGinnis Realtors explains in this video. Click the photo below.
Home Sales in Novato
This summer, we’re seeing a sharp rise in the number of houses selling with all-cash offers. In July, 46% of single-family home sales were cash deals, meaning the buyers did not need a loan to purchase.
That’s up dramatically from the beginning of the year. In the first quarter of 2024, cash purchases made up only 8% of all transactions.
Sellers love all- cash offers because they don’t have to worry about a loan or appraisal continency in the contract. And often, buyers paying with cash can close more quickly.
The increase in all-cash home sales in Novato mirrors a bigger trend. In the US, all-cash purchases have increased in the past two years to the highest level in a decade.
Who are the all-cash buyers?
In large part, they are people who owned a home, sold it, and then could purchase their next property without a mortgage. The freedom to make this purchase was likely due to the large amount of equity they had in their house because home prices have gone up significantly in recent years.
We can’t talk about cash deals without acknowledging that higher interest rates have kept many buyers on the sidelines, so all-cash deals make up a bigger percentage of transactions.
Changes Ahead?
Will this trend change in the coming months? Interest rates are coming down down and we expect to see a shift in the market starting this fall, with more buyers and sellers making moves.
If you’re thinking of selling, let us strategize with you to get the most money for your home. Call us today!
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