Multiple offer situations can be incredibly frustrating for buyers, especially those who have been outbid more than once. It can be even more frustrating if your offers are beat out by cash buyers simply because they are cash. If you need to get a loan to purchase your home, you might be wondering if you will ever be successful. Before you get frustrated and give up, let’s take a look at the data. Just how many offers are cash offers in Austin? The numbers are probably lower than you think.
How Many Offers are Cash Offers in Austin?
Since the beginning of 2015 (January 1, 2015 – May 15, 2015), 3,681 homes have sold in the City of Austin. Of those homes, only 797 (21.6%) of them sold for all cash. If you’ve been beat by a cash offer more than once, you’re probably having a hard time believing these figures. But, that could also be a factor of the price range you’re looking.
Cash Offers by Price Range
If you break down the 3,681 home sales by price range, you’ll see some price ranges are more apt to attract cash buyers. For example, every home that sold at or below $100k in Austin were purchased with cash. This could be because they were in such terrible condition that a lender would not lend on the property. But, it could also be investors with cash looking to snatch up good deals. We see a pretty percentage of cash offers in the $2MM and higher market as well, which is to be expected given the nature of the luxury real estate market. Here’s how the rest of the price brackets break down.
|Price Range||Cash Sales||Total Sales||% of Cash Offers|
|$100,000 or Less||15||15||100%|
|$100,000 – $200,000||138||480||28.75%|
|$200,000 – $300,000||210||1084||19.37%|
|$300,000 – $400,000||162||816||19.85%|
|$400,000 – $500,000||93||488||19.06%|
|$500,000 – $600,000||43||287||14.98%|
|$600,000 – $700,000||34||186||18.28%|
|$700,000 – $800,000||20||100||20.00%|
|$800,000 – $900,000||11||70||15.71%|
|$900,000 – $1MM||20||55||36.36%|
|$1MM – $2MM||52||160||32.50%|
|$2MM – $3MM||13||19||68.42%|
*Keep in mind, there is some overlap when we break down sales with a $100,000 bracket. Homes that sold for $500,000.00 will be counted in the $400k-$500k and $500k-$600k bracket, which is why you’ll see 3,770 sales here instead of 3,681 for the time period 01/01/2015-05/15/2015.
Only About 22% of Offers are Cash Offers in Austin
Next time you find yourself in a multiple offer situation, remember that only about 22% of sales in Austin are cash sales, maybe less depending on your price bracket. The majority of your competition is in the same boat as you – getting a loan to purchase the property.
Don’t Get Scared by Multiple Offers
We’ve had multiple offers in Austin for the past 3 years and I don’t expect to see that trend break anytime soon. Though multiple offers can be a frustrating situation when you aren’t successful, remember that it only means that wasn’t the right house for you. 99% of buyers say they ended up in the house they were meant to get and don’t regret not getting the ones they didn’t. Here are some other strategies for being successful in a multiple offer situation.
Considering Buying a Home in Austin?
Our team is experienced in this market and can help you get the best deal possible, even with multiple offers. With a combined 58+ years of experience in residential real estate, there isn’t too much we haven’t seen. If you are looking for someone who will guide you through the process and help you evaluate homes, we might be the right buyer’s agents for you to work with. Check out our Austin Home Buyer section to learn more about our team and how we work. Then, call us at (512) 827-8323, email us at info@11OaksRealty.com or fill out our Buyer Survey to get started.