Often times, at least in the past, investors were the ones who used CASH to buy property, especially during bidding wars. In March, more than 25% of the homeowners used CASH as well. That was up from the 12-month low of 22.8% seen in August. Homeowners didn’t want the investors to have all the fun. Leveraging bets works both ways in bidding wars!
Besides making your offer stronger, CASH purchases all help to speed up the delays in the closing process. In March, 30% of the financed homes with 20% down, suffered delays. These were mostly due to underwriting and documentation, according to real estate agents. It is not uncommon for underwriting to ask for documentation one piece at a time. Just when you think you’ve supplied the lender with all paperwork they have asked for, underwriting asks for more. It’s not uncommon to have underwriting ask for these requests up to the day you are scheduled to fund. OUCH
So the next time you want to close on time and not get involved in a bidding war…..write an ALL CASH OFFER. You can always re-finance after the home closes and save yourself a lot of headaches.
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IMPORTANT: If you or someone you know is interested in buying or selling a home in the Palm Desert Area, try searching properties on the same Desert Area MLS Realtor’s use, or give me a call….or visit my website at Palm Springs Homes and Estates. I will be happy to give you or your referral my “red carpet service.” After the sale, I will send you a $50 Gift Certificate towards dinner in a fabulous Palm Springs Area Restaurant so you can celebrate!