It is still a seller’s market in the District and hungry buyers are hedging their bets with cash. Nearly one in five properties sold this year were paid for in cash. That’s 19 percent of the 7,758 homes sold in DC since January. In many markets such as Capitol Hill (22.5%), Congress Heights (27.6%), Georgetown (30%), Spring Valley (37.2%), and West End (over 50%), the proportion was even higher.
Sellers like cash because they don’t have to worry about a loan being approved and closing and that means no financing contingency. An FHA or VA loan might also have repair conditions to meet. No chance of that with cash. Typically, an all-cash offer can close much more quickly as well.
Does that mean that if you are shopping in a competitive market with a mortgage, you should just throw in the towel? Absolutely not. An experienced Realtor can streamline a financed offer to make it stand out against the competition. Even if your down payment isn’t as much as the next guy’s, your offer could still end up at the top of the pile, but it’s important to have a savvy negotiator working on your behalf.