St Augustine, St Johns County Real Estate & Home Staging

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40% of sales in Jacksonville, FL are CASH sales. What does that mean?

40% of sales in Jacksonville, FL are CASH sales. What does that mean? 

 
What does it mean when 40% of the home sales in Jacksonville, FL are cash sales? It could mean that retirees are buying with cash to avoid mortgages in their senior years. While this may actually account for some of the sales, the truth is that it means that INVESTORS are back in business, in a big way. 
 
 
home staging jacksonvilleWith all of the foreclosures and short sales on the market, combined with a decrease in inventory and rising sale prices, this is the perfect market for both long and short term investors. 
 
Long term investors benefit from low prices, and the increased need for rental units. After all, most of the homeowners who lost their homes due to foreclosures and short sales now need somewhere to live and they cannot buy. Home values are very low and will undoubtedly create a healthy profit over time in a buy and hold strategy.
 
Short term investors, often known as flippers, are viewing this as an opportune time. At the peak of the market, when everyone and their brother were in the flipping game, getting properties at good prices was nearing impossible. Today, distressed properties are everywhere. Of course fixing them up and selling them at a profit, requires a healthy understanding of what adds value and which homes will be worth the investment. The majority of flippers, in today's market, are looking for smaller profits over the course of many homes. 
 
Lack of inventory is driving prices for good properties up. The average home buyer doesn't want to wait on the short sale process, or dealing with the work needed on most foreclosures. They want move-in ready homes. This is a benefit to flippers because it means that when the home is completed, it will likely be a quick sale.
 
For home buyers that plan on purchasing to live in a property, it is good to know who your competition may be. Today it may very well be an cash buyer, offering a lower price, but with no contingencies. There will be no fear of inspection issues or a low appraisal killing the deal. There is no fear of financing falling through, or taking months to close. Offering better prices, along with fewer contingencies will help sway the seller to chose your offer. 
 
2012 jacksonville market statistics
 
What seems clear about today's Jacksonville real estate market, it is shifting. We currently seem to have a balanced market between buyers and sellers, but the tides are quickly shifting to a seller's market, at least for homes that are in market ready condition. 
 
 
Thank you for reading.... 40% of sales in Jacksonville, FL are CASH sales. What does that mean?

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 Author Bio: Melissa Marro, Home Staging Industry leader, Realtor, and entrepreneur offers a unique perspective on New Home Construction, Resale Residential Real Estate, and Home Staging

For more information on buying or selling in the Fleming Island, Orange Park, or Jacksonville, area, visit StageListSellNEFL.com or call Melissa Marro (marro.melissa at gmail.com), Keller Williams First Coast Realty, for more information (904-466-2093).

 

Comment balloon 3 commentsMelissa Marro • October 10 2012 07:27AM
40% of sales in Jacksonville, FL are CASH sales. What does that mean?
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40% of sales in Jacksonville, FL are CASH sales. What does that mean? What does it mean when 40% of the home sales in Jacksonville, FL are cash sales? It could mean that retirees are buying with cash to avoid mortgages in their… more