As we all know, Memphis is the home of the King of Rock and Roll, Elvis. But when we talk about buying a home, Cash is becoming “the King,” of all negotiations in the real estate market. According to ATTOM Data Solutions, all-cash purchases accounted for about 36.1% of total home sales in 2022. That’s the highest rate since 2013! In 2011 and 2012, coming off the Great Recession, cash sales were about 38.5%. It’s a significant difference if we make the comparison between 2020 and 2021 when it grew from 22.7% to 34.4%. And it’s likely to keep increasing, according to Rick Sharga, executive vice president of market intelligence at ATTOM. “Going forward if you’re able to buy a property with cash, you’re in a position of extreme competitive advantage over somebody who’s going to have to finance a purchase with mortgage rates at 6 or 7%. It wouldn’t be a surprise to see the percentage of cash purchases actually increase in 2023.” Sharga said in a release announcing the findings. Meaning that, Buyers with cash are in a fairly good position to buy because home prices have been cooling and buyer demand is way down due to high mortgage rates.
The areas where cash is the King are located in states like Georgia, South Carolina, Florida and Arizona – states that are benefiting from migration trends and have been seeing significant investor activity. Furthermore, the states with the largest percentages of sales to institutional investors in Q3 2021 were Arizona (17.4 percent of all sales), Georgia (13.9 percent), Mississippi (12.8 percent), Nevada (12.7 percent) and North Carolina (11.3 percent).
The shift to cash came as the median home sale price increased about 10% in 2022, hitting an all-time annual high of $330,000. The ATTOM data shows that while home price appreciation is slowing due in part to higher mortgage interest rates from the Federal Reserve rate hikes designed to combat inflation, prices were still going up, albeit more slowly. The National Association of Realtors found in the fourth quarter of 2022 home prices rose about 4% compared to the same in 2021.
What You Should Know About Cash for Houses Companies in Memphis
Knowing that cash is the King in our current market, many companies in Memphis are offering cash for houses but they may miss valuable details because they aren’t local. However, there are options for sellers you should be aware of before you decide on the best sales method for your property.
Of course, earning the highest possible profit on the sale is essential. Still, before making a deal, you should clearly understand how each option will resolve your personal or financial concerns. So, if you’re considering your options for selling your home for cash, read on as we explore what you should know about cash-for-houses companies in Memphis.
Cash buyers aren’t real estate agents; they are local, they know the market as well as agents, and consider what makes sellers the most profit. Local cash buyers like us at Memfixerupper can buy your house without limitations or help refer you to good agents in the area that will help you list your property on the Memphis real estate market. Or, if you don’t have the interest or time to list, acting as an investor, Local cash buyers at Memfixerupper can buy your home directly for cash, in as-is condition. You can skip the listing process and the hassles of showings with a direct sale and you won’t pay any commissions; there are no hidden fees and closing costs. Not everyone has the funds to bring their property to its highest potential to earn the highest possible profit. At Memfixerupper, we offer a convenient one-stop shop for sellers no matter why they are selling or how they decide it’s best to sell.
While cash buyers offer speed, when first considering selling, most homeowners reach out for recommendations for a real estate agent to help make the process as easy as possible. At Memfixerupper, we work with a policy of total transparency, sharing every detail of significance to help sellers like you make an educated decision with realistic expectations about what works best for you. We do this at Memfixerupper because we want you to feel good about working with us long after the closing. We will provide you the numbers on how much you could profit from listing and what you can expect to spend out of pocket for marketing, repairs, commissions, or other fees. We will then make an offer that you’ll agree is fair to buy your house directly so you can compare the profits, the timeline, and the convenience of each of the options. We can even let you pick the most convenient day for closing when you make a direct sale with Memfixerupper.
Why not talk to one of our team members from Memfixerupper and find out more without obligation? You’ll see the difference when working with local professionals and their teams, your neighbors here in Memphis. Call Memfixerupper at 901-450-5179