Doesn’t it seem like more and more buyers are paying cash for properties as compared to a few years ago? Well, that’s because they are.
We recently pulled the historical data for closings at First Alliance Title to determine the cash purchases vs the financed purchases at our company. In 2019 only 14% of the buyers paid cash. Last year that percentage jumped to 23%. Quite a jump in two years.
Despite the increase in the number of cash contracts, when it comes to closing, cash isn’t necessarily king. Cash offers fall out more often than financed offers, and the difference is significant. In 2021 the cash contracts we received terminated 5.7% more often than the financed contracts.
Based on this significantly higher rate of termination, Sellers may be wise to choose the financed offer over the cash offer.
