The start of a new year is often a time of reflection, which over the past 12 months, held a struggling real estate market in my market area. Thankfully, reflection also brings about anticipation and optimism for the year to come. In lieu of our new year approaching, I’ve decided to put together 11 residential real estate predictions for 2011 – released one day at a time. Enjoy!
Real Estate Prediction #10) Cash is King
Struggling financial markets and a depressed real estate market with a “bottom” in sight. Sounds to me like Real Estate may be a great place to park cash…especially when you can use that cash to negotiate a better deal. I did 2 All-Cash transactions last month. One buyer offered about 15% less than asking AFTER the seller had dropped the price nearly $100k…and they didn’t even bother to counter an all-cash offer. Then we negotiated more money off after the inspection. The other also got a home for 15% less than the original listing price.
At this point – I have a feeling that these owners are going to have 15% in equity fairly quickly…and even if they don’t, one has a renter paying them back, and the other has a fantastic new home on a golf course…and got in at a level barely seen this century.
Investors with cash are going to continue snapping up deals because a lot of financing just isn’t available to would-be investors – and I believe we’ll see more cash investors this year than last because many markets are starting see values drop at a lesser pace…and an end at least feels near.
Stay tuned for tomorrow’s prediction!
For help purchasing your next home, or selling the one you’re in…give me a call at (425) 483-1010 or email at Ryan@BoardwalkSeattle.com!
Real Estate Broker | Realtor ®
Boardwalk Real Estate, LLC
Phone: (206) 930-7959 | Email: Ryan@BoardwalkSeattle.com
Providing professional real estate services throughout the Greater Seattle area.
North Seattle | Bothell | Lake Forest Park | Edmonds | Mill Creek