Charlotte Home Buyers NEED Cash Offer Alternative

Dated: October 5 2021

Views: 287

What is a Super Buyer?

The prevalence of cash offers here has put traditional Buyers, with traditonal mortgages, at a serious disadvantage when buying a Charlotte home.  We know of atleast 3 private equity companies buying property here in Charlotte.  Then their are the better known cash offer real estate companies: Zillow, Offer Pad, and  OpenDoor.  Not to mention the three ibuyers we have in eXp's Express offer platform.  Yes, thats upwards of 10 firms that might make a cash offer on your home.

But what of the first home buyer? They have saved for their down payment, have been pre-approved, but how and why would they want to be able to present a cash offer? 

If the home for sale is Under $500,000, you can all but guarantee there will be one or more cash offers on the home. If you are a traditional home buyer, with 10 or 20% down, how do you compete? 

Enter Ribbon Home, a guarantee of a cash offer if for any reason you can't close your traditional mortgage.   The process is easy enough, Ribbon will appraise the house, verify and accept your pre approval from a local lender, and issue  a Ribbon amendment guaranteeing they'll purchase the home cash if the home buyer does not.  In this way the financing contingency is removed.  The cost is 1% of purchase price- usually much less that what a higher offer might have looked like. 

More competition is coming to the buyer side.  Some lenders will front the offer as cash for their fully pre approved buyers.   Some brokerages may do the same. Soon we will have Buyers and "Super Buyers", those who can make cash offers, and those who can not.

As brokers we need to prepare our buyers, go the extra mile with them to help those who can become Super Buyers. And then, prepare our Sellers for an abundance of cash offers, something a bit easier perhaps!   

Moving to Charlotte? 

Charlotte Homes Under $500,000

Charlotte Luxury Homes

Ballantyne Area Luxury Homes

  

Blog author image

Terry McDonald

I came to real estate 16 years ago after more than 20 years in residential building as a designer, builder and renovator. I started in real estate with websites and helping relocating families, and ....

Latest Blog Posts

Charlotte Home Buyers NEED Cash Offer Alternative

What is a Super Buyer?The prevalence of cash offers here has put traditional Buyers, with traditonal mortgages, at a serious disadvantage when buying a Charlotte home.  We know of atleast 3

Read More

5 Fun Facts About Charlotte NC

These 5 Facts are Remarkably Unknown1. Charlotte, before adopting the moniker the "Queen City", was known as the "Tree City" because of the delightful tree coverage here. As a local arborist once

Read More

Waterfront Property In Greater Charlotte Area

Charlotte NC is known for its proximity to Lake Norman, the largest fresh water lake in NC.   About 20 miles north of Uptown Charlotte, the lower lake area is an easy commute to Uptown.

Read More

Moving Made Easy!

Moving Made Easy: A Plan And a PodIf you are selling, then about 30-35% of your house should be packed up and in storage before it’s even on the market. Where does it go?    A

Read More