Cash REMAINS KING in the Las Vegas Area Real Estate Market!!! It is important for every buyer in the Las Vegas Area Real Estate Market to understand who their buyer competition is in this currently competitive seller's market LV is enjoying! It is important to understand how a seller looks at each financing type:
Cash Offers: Generally have less contingencies and quicker close times. A cash offer may be accepted even if it is lower than a financed offer.
Conventional Financing: Less strict with lender required repairs but larger down payments and more strict credit guidelines.
FHA/VA Financing: Requires more scrutiny with lender required repairs via appraisal. In general these take longer to underwrite and close so a cash or conventional offer looks more enticing to the seller. FHA Requires the deed to be seasoned for several months so some flips bought at trustee's sales are generally out as options when competing with multiple offers!
Other: Less common and creative financing types such as Lease Options, OWC (Owner Will Carry), etc. The "other" category INCLUDES auction terms!!
Where is all that cash coming from? I'll bet it's from out of state investors who are gambling that LV gets hot again.
Renee: Many more "Conventional", solds in May than in April! Just like here in California.
Renee - Not much to dislike about a cash offer. We have seen an influx in Conventional recently. Here's hoping your sales get as hot as the temperature there !
Renee - It's really cool that you have so many cash buyers in Vegas. Not so in most places around the country.
Renee - It's great that 42% of Las Vegas NV buyer's are still cash.
Jim: Could be ;)
Jane: I like to see the high bid go to financed buyers ;)
Claude: It got hot for a weekend and has been unseasonably cool the rest of the year!
Nevin: It is a great thing - but not so much for the lenders!
Michelle: I would say! Number is shrinking although still impressive.
Renee,
Those 30% FHA buyers are going to be sitting on a goldmine if rates skyrocket because their loans will be assumable.....
Thanks for sharing,
Lori Cofer
Renee,
Cash-carrying investors have been all over the market for a long while now. They must have plenty of trust in a rewarding recovery down the road.
Lori: NO DOUBT that is what I keep on saying! Some in the last two years have even done multiple streamlines to get their rate in the low to upper 4's.
Esko: yes! Let's see how the next several months play out!