Cash Home Buyers Are Rising: How To Land More Of Them
New data from ATTOM and Bloomberg shows that 50% of home purchases are now being made by cash buyers in some cities.
Why are there so many cash buyers in the market right now? Why should you be connecting with more of them to fuel your investing? How do you do it?
The Rising Percentage Of Cash Buyers
New data reveals that cash home buyers now make up 50% or more of all transactions in at least 13 major cities. Including Atlanta.
Recently the media has spun a lot of negativity about the economy. Which may or may not be accurate. Though it may make it surprising that so many cash buyers are showing up to purchase homes.
However, in this next phase of the market when traditional retail mortgages can become harder and more expensive to get, cash buyers certainly do rule.
They are certainly the preferred choice for real estate wholesalers looking to turn their deals fast, with certainty, and the fewest risks of falling apart before closing.
Who Are They?
ATTOM poses that institutional investors have actually pulled back a little, with regular retail home buyers jumping in as these cash buyers.
This is great for wholesalers who can find well priced deals, and still sell at retail, and close to top of the market prices.
Of course, many institutional investors have been working on liquidating old inventory, and are preparing to make more acquisitions as the market balances out.
This may be a great time to jump in while there is less competition and find more profitable deals.
Many of these retail buyers may include those selling homes with lots of equity and looking for new destinations to live in. As well as those relocating to more affordable areas. And those cashing out poorly performing retirement accounts, and looking for something more solid to put their money into.
How To Build Your Cash Buyers List Now
This next phase of the real estate cycle is one in which cash buyers are always extremely important.
In many cases traditional retail mortgages become very elusive. Cash buyers are the most reliable end buyers to wholesale your deals too. Those who control the most qualified buyers will be those that win the most. So, how do you line up more of them?
SEO, and publishing blogs and articles is still the highest ROI way of attracting real estate leads today. According to Whatconverts, it can be 3x or more profitable than other forms of online marketing.
However, the same data set shows that by adding a little PPC to your marketing mix can actually exponentially drive up the results of your SEO and content campaigns.
With all the new technology and noise out there, human connection, relationships, and better customer service have also only become more important and valued. So, also look for opportunities to build an offline community and network to build those real connections with those who are likely to be cash buyers.
