Florida Mortgage Trends

Cash Offers Hurting Florida Buyers

January 26th, 2014 9:28 PM by Scott Bray

  Although we do business throughout the entire State of Florida our main business comes from Brevard County where our corporate office is. 

Over the last few months, Florida has led the Country in the number of homes that were purchased by cash.  And of all the counties in Florida, Brevard County led Florida in the most purchases of homes by cash.  Thus Brevard County technically leads the country in number of cash purchases.

What we are hearing from our clients as well as First Time home buyers is that many of the homes under $125,000 are purchased with cash and because our clients are using a mortgage that the sellers are choosing to go the faster route and accept the cash offer.  Some of the cash offers are coming in significantly higher than the asking price of the home in sometimes a cash vs cash offer going to the highest bidder.   This has left a few of our clients on the outside looking in after looking at dozen or two dozen homes to later be beat by a cash offer.

First time buyers have been left out of the housing recovery...only 27% of the sales nationally in December where from First time buyers.  Historically, First Time Buyers amount to 40% of the buyers of homes. 

One of the main reasons for the down turn is First Time Buyers typically buy under that $100,000 range where many Investor buyers are buying rental properties and can afford to pay all cash for the homes. 

Some solutions that we're seeing at AmeriBest Mortgage is to get pre-approved through our office early so when it's time to put your bid on the home then we can close your purchase in less than 30 days thus giving cash less of an advantage. 

Also looking at websites like HomePath.com which are Fannie Mae foreclosures which are nice to allow First Time Buyers or Primary home buyers a First Look / Purchase ahead of the investor opportunity to buy a home before the investor does.  Also FHA offers foreclosures with this same First Time buyer gets first dibs mentality too.  See these homes at:  http://www.hudhomestore.com/Home/Index.aspx .

Lastly, 2014 is shaping up to be one of the best years as rates recently dropped to the lowest levels seen in the last 4-5 months.  So if you can save your tax return refund and can either put down at least 3.5% from your funds or a gift from a family member then we can help you buy your dream home in 2014!  Good credit is required but we're here to answer all your questions.  Please give us a call at (321) 777-7277.  Ask for German, Allan or Scott.

Good Luck!
Posted in:General
Posted by Scott Bray on January 26th, 2014 9:28 PM


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