You’re looking for a new home in Prince William County and you’ve heard “cash is king.” Are you worried you might not have a chance against the investors? Though there are sellers who prefer the clean nature of a cash transaction it doesn’t mean that cash is always in the drivers seat.
If you look at the number of transactions in Prince William County so far in 2012 you will see that cash accounts for 16% of the transactions. Looking at the types of homes sold with cash over 2/3 of those transactions were either REO’s or short sales. The average sales price on a cash REO was $177,000 and many of these properties likely would not have qualified for FHA or VA financing due to issues which would not pass a lenders condition requirements.
If you are planning on financing your new home purchase, make sure you have a solid lender letter in hand before you make an offer. Write an offer that reflects the comps in the neighborhood and present an earnest money check showing you are serious about purchasing a home.
The local market is competitive but it doesn’t mean your competition is a cash buyer. It is more likely to be another buyer just like you looking to take advantage of today’s low interest rates. Present a strong offer, well written offer and you could be in the drivers seat.