In recent months, there’s been a fairly substantial increase in cash buyers and big-time investors buying up real estate all over the country, especially in larger cities like Chicago. For a lot of first-time buyers, hearing this kind of chatter can sometimes be discouraging and often lead to the assumption that if they have to secure a mortgage, they won’t be able to compete for the same properties.
There’s no doubt this influx of cash buyers has kept some would-be home buyers from ultimately making that leap from renting to home ownership, but if you’re someone who is still considering buying a home, it’s important to realize that cash isn’t always king in the real estate game.
The first thing you need to know is that cash buyers almost always expect some sort of discount on a home or condo, usually claiming they’re eliminating much of the risk that goes along with applying and securing a home loan. To counter this, smart home buyers who do have to finance their new home purchase should always be fully approved prior to making an offer, which also eliminates a lot of the headaches associated during the home buying process.
In addition, it’s always a good idea to have your mortgage representative gather as much information about the property as possible before making that initial offer because if the lender feels strongly about both the buyer’s finances, as well as the property itself, this may reduce the amount of time it takes to get approved.
Finally, because cash buyers usually end up paying less and expect a discount when it comes to the final purchase price, other buyers who need to finance should always counter their offer with a higher offer and pay more. While spending more money might not sound like the best idea, submitting a higher offer doesn’t necessarily mean “overpaying.” Instead, we suggest paying market value for a home or condo you really want, which cash buyers rarely consider and usually won’t pay.
Are you looking to buy a home or condo in downtown Chicago? Contact our team of experienced and professional agents for all your real estate needs in the Windy City, regardless of whether you're a cash buyer or someone needing to secure a mortgage loan!