Do you get a better buy when you pay cash for a property in San Diego? The answer is perhaps. According to Sandicor MLS statistics for the 1st Quarter 2009, cash buyers pay 95% of the listed price. Whereas financed sales pay a higher percentage.
Interestingly, however, buyers financed through government loans pay less per square feet.
6,944 1st Quarter Solds (carrybacks etc not shown)
1,509 Cash Sales
• $308,833 Avg SP • $195.06 SP/SF • 95% SP/LP
3,148 Conventional Sales
• $422,974 Avg SP • $234.72 SP/SF • 98% SP/LP
1,548 FHA Sales
• $262,391 Avg SP • $184.67 SP/SF • 100% SP/LP
656 VA/CALVet Sales
• $305,48 Avg SP • $188.96 SP/SF • 100% SP/LP
Cash buyers have some edge, they usually do not ask for an appraisal and remove all contingencies quickly therefore it is a faster transaction. Banks like that….however, they often will take higher bids that are financed if the buyer is well qualified and have good down payments. A significant note, cash transactions have doubled over the 1st quarter of 2008 which was 10.5%…investors are buying.
Competition is fierce for investors now. The lower priced homes most often have multiple offers. I have seen 14 in one or two days and up to 2 dozen or more especially in bank owned properties.
Not only are investors buying up a storm, buyers who want to buy a home are as well. Bank owned properties are already reduced, the value is there. Home buyers are taking advantage of the lower prices and low interest rates. FHA loans have increased from 2.6% the 1st quarter of 2008 to 22.3% this year!
If you are looking to buy an investment property or are a first time buyer looking for good value, contact me for more information.