Cash home sales have increased across the country and specifically in Nashville, which has made buying a home with loans that much harder.
Nashville has become a seller's dream, and brokers like Debra Beagle with Aston Real Estate Group for Remax Advantage haven't been doing too bad either. "It's booming right now very competitive," said Beagle. "We're seeing multiple offers on multiple different price points for sales."
Supply and demand has pushed the value of homes here through the roof. "When you're under three months of inventory, it's a seller's market," Beagle said. "We're between 30 and 60 days on market for most price points, so things are going under contract pretty quick."
In order for buyers to stand out in a crowd Beagle said cash has become king. Nashville has all the amenities of larger cities, but without state income tax, and that's bringing in buyers from places where the average home is $800,000. "They'll sell their home and walk away with say $400 to $300,000 in cash," said Beagle. "They can move to our part of the country and pay cash for a home and also not get hit with capital gains."
With a loan for a home, there's an appraisal. With cash, that condition doesn't exist, avoiding those 30 to 45 days to close the deal. "They can close most cash deals quickly," said Beagle. "I closed one in five days."
So how can buyers using a loan compete? Beagle says it starts with selecting the right team. "You have to have a great agent work for you to structure and offer a good package that is going to be attractive to the seller," she said.
That package may include making the smaller home repairs yourself and giving the seller post close possession. "You're asking for as little as possible from the seller and being very flexible," said Beagle. "That really helps boost the offer."
According to RealtyTrac, cash sales are up by 38% this year across the United States and they expect that number to grow. Click here, for more information on the market in Nashville.
