Are Sellers only accepting cash offers?

22 Jun Are Sellers only accepting cash offers?

Q:  We have friends in the Valley that are considering purchasing a summer home and would be financing the property.  They have heard that Sellers are only selecting cash buyers now.  Is that true?

A:  We are currently in the most competitive real estate market probably in history due to the shortage in housing that was created during the financial collapse 10 years or so ago.  During that time, housing construction had a shortfall of approximately 394,000 per year.  That has left the real estate market with a shortfall of approximately 5.5 million housing units.  We will be years catching up with demand.  So, what does that have to do with cash?  Cash use to be king – however, with low rates and a very high stock market most people are leveraging their cash in both directions.  The only problem the market is having with appraisals is the length of time it takes to get one.  Properties are appraising and many buyers will waive the appraisal.  Hence, cash is not the determining factor in purchasing a home.