Mortgage buyers facing stiff competition

In the current real estate market, MarketWatch reports buyers who need to take out a mortgage are actually at a significant disadvantage compared to people buying a home with cash.

A number of real estate agents told the site that they have seen many sellers accept a lower offer from a cash bidder on their home instead of a higher bid from someone who needs a mortgage.

Home prices in some parts of the country have gotten so low that people are cashing in their other investments to buy houses as rental properties. In other situations, parents are giving their children cash to help them buy a home, and getting back more in interest than they would from the bank.

Real estate agents told the site that to help prevent getting beat out for a property, buyers should be sure to get a mortgage preapproval to show they seller they are qualified for Houston homes they look at, and prove financing likely won't become an issue.

Cash-only deals now make up a significant part of the market. The National Association of Realtors says one-third of existing home sales were made in all-cash deals.

Courtesy of 2M Realty News