Dallas Real Estate: Know of Any Cash Buyers in Dallas?

February 12, 2011 | Candy Evans | | ,

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I wrote a piece for AOL this week that was very telling: cash real estate transactions are up, as originally reported by the Wall Street Journal: in fact, cash buyers may be juicing up the market, especially in the underwater areas. The WSJ wonders if this could be a good gauge that the market has bottomed. When looking deeper, I found that cash real estate transactions were as high as 51% of all the real estate transactions in troubled Las Vegas, where it is cheaper to buy a home than rent IF you can get financing.  Cash buyers represented more than half — 50 percent — of all transactions in the troubled Miami-Fort Lauderdale area last year, this according to Zillow.com. Looking back at 2006, cash was king on only 13 percent of deals. That cash was enough infusion to make Miami home prices actually rise 15 percent in 2010 from a year earlier, according to the Miami Downtown Development Authority. And in drowning Phoenix, the percentage of buyers in Phoenix paying cash hit 42 percent in 2010 — which was more than triple the rate in 2008.

Nationally, the National Association of Realtors says only 28 percent of real estate sales were all-cash deals last year. Compare that to a rate of 14 percent in October 2008, which is when the NAR first started tracking the measure.

So I want to track the cash sales rate in Dallas. If you have made any cash sales or purchases, please pipe in right here and comment. What I’m hearing is that there are a lot floating around, and deals are coming in at 10 to 20% the asking prices. On a $2,200,000 home, a cash buyer plunked down a cool two million and the seller said, deal. This in Park Cities.

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Candy Evans

Candy Evans

24 Comments

  1. Geordie Romer | Leavenworth WA on February 13, 2011 at 11:21 am

    In our vacation home market in Washington's Cascade mountains, we're seeing a lot more cash than we have in previous years. Every transaction our team has particpated in this year has seen a cash offer. Most of these have also seen multiple offers, so sometimes the cash offer has been beaten out by a larger financed offer.



  2. Geordie Romer | Leavenworth WA on February 13, 2011 at 11:21 am

    In our vacation home market in Washington's Cascade mountains, we're seeing a lot more cash than we have in previous years. Every transaction our team has particpated in this year has seen a cash offer. Most of these have also seen multiple offers, so sometimes the cash offer has been beaten out by a larger financed offer.



  3. Candy Evans on February 13, 2011 at 1:34 pm

    Thanks, Geordie. Do you think those offers are driving up prices? Also, I'd love a guest post from you on the types of vacation home your area offers and pricing. Thanks!



    • Geordie Romer | Leavenworth WA on February 13, 2011 at 2:48 pm

      I don't think they are directly increasing prices, but they are closing quickly which is helping clear out some inventory. I think they will help values go up because they are creating "comps" that appraisers can use in the future for conventionally financed properties. In a small market, finding comparable sales can be tricky sometimes.

      (I would be honored to write a guest post for you.)



  4. Candy Evans on February 13, 2011 at 1:34 pm

    Thanks, Geordie. Do you think those offers are driving up prices? Also, I'd love a guest post from you on the types of vacation home your area offers and pricing. Thanks!



    • Geordie Romer | Leavenworth WA on February 13, 2011 at 2:48 pm

      I don't think they are directly increasing prices, but they are closing quickly which is helping clear out some inventory. I think they will help values go up because they are creating "comps" that appraisers can use in the future for conventionally financed properties. In a small market, finding comparable sales can be tricky sometimes.

      (I would be honored to write a guest post for you.)



  5. Bryan Crawford on February 14, 2011 at 10:10 am

    Candy,

    I work with Cash Investors in Dallas and have closed many all cash deals in the last year. Including Preston Hollow, Lakewood, Caruth Terrace, Northwood Hills, Area 16 (Royal/Marsh area), Carrollton, and Plano. I know it sounds small but I closed $1.9 Million in Cash Investment properties in the last year with an average sales price of $200k. I have found that you can get a huge discount off of list price with an all cash buyer, short option period, and quick close. Many of these investors are selling stock or cashing out of their IRA accounts seeking a better return on their money.



  6. Bryan Crawford on February 14, 2011 at 10:10 am

    Candy,

    I work with Cash Investors in Dallas and have closed many all cash deals in the last year. Including Preston Hollow, Lakewood, Caruth Terrace, Northwood Hills, Area 16 (Royal/Marsh area), Carrollton, and Plano. I know it sounds small but I closed $1.9 Million in Cash Investment properties in the last year with an average sales price of $200k. I have found that you can get a huge discount off of list price with an all cash buyer, short option period, and quick close. Many of these investors are selling stock or cashing out of their IRA accounts seeking a better return on their money.



  7. Candy Evans on February 14, 2011 at 10:56 am

    Bryan: about how much is the discount? 10 to 20% off listed price?



    • Bryan Crawford on February 14, 2011 at 7:01 pm

      Candy,
      I would say that a 10% percent discount is expected for sure, sometimes more. Sellers will go for all cash with a quick close over contingent to financing even if the offer for financing is slightly more, at least that has been my experience this last year. Here were a few transactions over the last 3 months I worked on with all cash buyers. I have also found that offers on listings are coming in around 10% off list price no matter if the home is listed below,at,or above market value. Buyer's are expecting a discount. I just had a friend get an offer of $158 sq/ft in Caruth Terrace on a "down to the studs" remodel. The lowest solds are between $179 and $189 for the west side of Abrams that feeds to Stonewall Jackson. Here were a few examples of purchases:

      Listed for $184k, sold for $150k. Thank you Fannie Mae.
      Listed $325k sold for $270k
      Listed for $125k sold for $105k
      Just offered $270k cash today for a home in the middle of the Greenland Hills. Market value is around $370k "subject to short sale approval".



  8. Candy Evans on February 14, 2011 at 10:56 am

    Bryan: about how much is the discount? 10 to 20% off listed price?



    • Bryan Crawford on February 14, 2011 at 7:01 pm

      Candy,
      I would say that a 10% percent discount is expected for sure, sometimes more. Sellers will go for all cash with a quick close over contingent to financing even if the offer for financing is slightly more, at least that has been my experience this last year. Here were a few transactions over the last 3 months I worked on with all cash buyers. I have also found that offers on listings are coming in around 10% off list price no matter if the home is listed below,at,or above market value. Buyer's are expecting a discount. I just had a friend get an offer of $158 sq/ft in Caruth Terrace on a "down to the studs" remodel. The lowest solds are between $179 and $189 for the west side of Abrams that feeds to Stonewall Jackson. Here were a few examples of purchases:

      Listed for $184k, sold for $150k. Thank you Fannie Mae.
      Listed $325k sold for $270k
      Listed for $125k sold for $105k
      Just offered $270k cash today for a home in the middle of the Greenland Hills. Market value is around $370k "subject to short sale approval".



  9. Nick Cifonie on February 16, 2011 at 4:24 pm

    Here's a LIST of cash buyers in Dallas County and any other county…

    https://hsolutions.infusionsoft.com/go/fc/reio/lem6?r=reio

    Nick

    .



  10. Nick Cifonie on February 16, 2011 at 4:24 pm

    Here's a LIST of cash buyers in Dallas County and any other county…

    https://hsolutions.infusionsoft.com/go/fc/reio/lem6?r=reio

    Nick

    .



  11. All Cash Home Purchases On The Increase: Get Ready for Inflation | Second Shelters on March 1, 2011 at 11:00 pm

    […] Well, I want in on their secret. Because it’s almost downright eerie how many  cash buyers are out there. Generally, they are commanding a 10 to 20% discount when they flash cash at sellers. Why? Because […]



  12. All Cash Home Purchases On The Increase: Get Ready for Inflation | Second Shelters on March 1, 2011 at 11:00 pm

    […] Well, I want in on their secret. Because it’s almost downright eerie how many  cash buyers are out there. Generally, they are commanding a 10 to 20% discount when they flash cash at sellers. Why? Because […]



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