Okay, so you’ve gotten the message from some of my other posts, and now you’re ready to purchase a Charlottesville home. The temptation for a buyer is to approach today’s Charlottesville real estate market with the notion that you’ll be able to whack another 20% off the seller’s asking price – it’s not going to happen. All of today’s asking prices are based on today’s marketplace and reflect a healthy savings versus what you would have paid for the same property just three years ago. Don’t let this notion stand between you and some of the best real estate buys in recent memory.
The Buying Power of Cash in Today’s Charlottesville Real Estate Market!
Every deal will still involve a negotiation and that negotiation will usually result in the buyer paying less than the asking price. How much less? If you have the wherewithal to make a cash offer, you will be able to negotiate your best deal with the seller. For the first two months of 2008, the average percentage of Sales Price to List Price for homes sold in Charlottesville as 96.5% while for the sale of Albemarle County Homes, the percentage was 94.18%. Cash buyers of Charlottesville real estate on the other hand paid on average 93.19% of asking price while cash buyers of Albemarle County real estate paid 92.09%. That’s the power of cash in a negotiation and the reason Cash is King. But, credit is pretty good too particularly when you think about how little money you have to come up with at closing versus paying all cash. You’ll end up with a slightly higher purchase price, but the reality is that the extra 2-3% you’ll pay, will hardly be noticeable when amortized over the life of a 15 year or 30 year mortgage.
I look forward to your comments.
Until my next post,