Yeap, that’s it.
The impression with most buyers is that because they are paying cash, they should get a big discount off of the asking price. That is just not the case.
Cash buyers in Big Bear are only saving 1% for paying cash as compared to those buyers that are getting a loan or any other type of financing.
I am no accountant, but it seems to me all the tax benefits of having a loan against the property add up to more than a 1% savings.
Year to date, there have been 164 cash sales for residential properties in Big Bear. The average sales price to list price ratio is 94%. Compare that to the 95% ratio for all other types of financing.
Here are some other interesting stats for cash vs. loan/other financing sales –
- Cash sales YTD are up 123% compared to 2008 numbers, 164 v. 74. This is expected, as overall sales are up 34% YTD, but there has been a marked increase in cash sales.
- The average sales price for cash sales this year – $303, 418 vs. $258,605 for loan/other financing sales. I would have thought this would be the opposite.
- Average days on market comparison – cash sales 101 DOM vs. loan/other sales 130 DOM. This goes to my point that the hot properties, those selling quicker, are attracting more cash buyers and competition amongst themselves.
Like the video above? Check our some of my other real estate video topics here.
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