We are seeing more and more people paying cash for their homes in Scottsdale. Cash buyers make up a large percentage of all real estate transactions in Maricopa County. The reasons for this vary depending on the price level. At the low end of the market, many investors pay cash for homes as an additional incentive for Sellers to select their offer. Sellers always prefer cash deals over financed deals, because of the lack of an appraisal or financing contingency. Many high-end buyers pay cash for their homes, simply as a way to park money in a real estate investment. You have to do something with your money right? Since the stock market crash, many affluent buyers see paying cash as a way of diversifying their assets.
In Maricopa County, the percentage of properties purchased without financing rose from 37.4% in August 2011 to 38.5% in August 2012. For comparison, in June 2007 we saw 8.3% of sales being completed by cash buyers. Cash purchases now dominate at the lower end of the market but also represent almost 1 in 3 of more expensive home sales:
• Under $150,000 51% cash
• Between $150,000 and $500,000 24% cash
• $500,000 and over 32% cash
Interestingly, cash buyers have always made up a majority of my business. Approximately 75% of my clients this year, paid cash for their homes. I believe that is because I specialize in helping out of state buyers buy second homes. Financing is more common with primary residences than second homes. Most vacation home buyers pay cash for their homes. Those that do finance their vacation homes, usually do so simply to take advantage of the historic low rates and leverage their investment.
Call me with any questions or to schedule an appointment to view any homes in Scottsdale.
Carmen Brodeur JD
Trillium Properties, LLC
9825 E Bell Road, Suite 120, Scottsdale AZ 85260