May 2022 Tampa Home Market Update and how to compete in a cash market

Cash is king in this market, but that doesn’t mean buyers have no options.

In real estate, we always say that “cash is king,” and that has never been more true than in today’s market. Many well-qualified financed buyers are putting down 20% or more and still getting beaten out by cash buyers. So what happens if you don’t have the cash to compete and still need to get a loan? You’ll definitely want to speak with our lender about the Lock and Look program. With rising interest rates, it’s a good idea to get fully underwritten and lock in a good interest rate now. That way, when it comes time to make an offer, you can make one that’s equivalent to a cash offer and doesn't require a financing contingency. It comes with some risk, but it will help you win in today’s environment.

"Sellers will typically choose cash or conventional offers over government loan options."

The market has also been hard on first-time buyers using FHA loans and veterans using VA home loans. Why? Sellers will typically choose cash or conventional offers over government loan options. FHA loans often allow buyers to have higher debt ratios, and one little change in their circumstances can turn a qualified buyer into an unqualified one. And since VA loans are often 0% down, veteran buyers don’t always have the cash to compete. In the end, there are a lot of different ways that buyers can compete in today’s market and come out successful. If you have any questions about those strategies or anything else to do with real estate, give us a call or send us an email. We’d love to be your resource.