Speak Softly And Carry A Big Bag of Cash

The National Association of REALTORS® revealed in a recent study that 28% of home sales were all-cash transactions in 2010, compared with 14% in a study done in October 2008.

Economists pointed out the obvious, the more depressed a housing market was, the more cash deals were transacted. Cash buyers are at a greater advantage and can actually save between 5 – 10% because cash deals close more quickly and there is no threat of a lender changing their mind in the eleventh hour.

Yes, that happens and that is why I tell my clients who require financing, after the Purchase and Sale Agreement is executed --- don’t even think about buying furniture, an automobile or anything that could alter your financial picture until after the Closing.

According to a WSJ article, “The jump in real-estate purchases made with cash is another sign of the revival of animal spirits in the U.S. economy.” Wouldn’t that be nice? A return to a more quiet jungle.