Florida residents: trouble purchasing residential real estate?

Florida residents: trouble purchasing residential real estate?

There seems to be a growing trend in home purchasing: paying in cash. A recent article has shown that residential real estate is selling for cash at an astonishing rate. This creates a problem for residents that want to mortgage their home. First time buyers in particular are finding it difficult to purchase residential real estate because sellers seem to be holding out for a cash offer.

Florida led the nation last month with 66 percent of sales being cash only. Investors as well as vacation home buyers seem to have an edge on the housing market as they are bringing cash offers. The article pointed out this makes it harder for those not able to pay in cash to become homeowners. One single mother in particular pointed out that she had made an offer on a home that wasn't accepted because the owner was holding out for a cash offer.

Not only are existing homeowners partial to cash offers, but banks seem to be leaning in the same direction. Mortgage requirements have tightened which has proven to be more difficult for banks to loan individuals the money needed to purchase property. While this trend has proven profitable for the housing market, it could ultimately cause aspiring homeowners to have to look elsewhere.

Any Florida resident who is having trouble purchasing residential real estate because of lack of funding may want to research the best steps to take in order to help make the purchase happen. Although it can be a frustrating process, with the proper knowledge a person can be hopeful to receive a positive outcome. Should a person find themselves overwhelmed during the process, it may be comforting to know that help is available.

Source: Orlando Sentinel, Florida leads nation in cash-only home sales, Mary Shanklin, Aug. 29, 2013