March 14, 2022      

Is Cash King?

Is Cash King?

Steps to getting an offer accepted:

• $50k over asking price
• Inspection for Information Purposes Only
• Cash Offer

Today, these steps are perceived as requirements for getting an offer accepted and closed in the Massachusetts real estate market. While the first two bullet points still seem to hold true based on my experience as an agent for buyers and sellers, there is some good news for those without six figures of cash — cash is not necessarily king.

There is still hope for the FHA buyer! Based on multi-family sales over the last 6 months, almost a third (29.1%) of sales were financed by FHA buyers and almost half (48.1%) were funded with conventional financing. Only 12.9% of sales on the Multiple Listing Service (MLS) were made with cash.

While it all comes down to contingencies and flexibility on the buyer’s side in this seller’s market, financing does not seem to be as large of a factor as previously thought. Note that these numbers are not influenced by the single family market, showing that there are still deals on the MLS for the new or veteran House Hacker!

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Financing

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