A large percentage of Philadelphia real estate purchases are cash buys and cash buyers are becoming more prevalent in the Philadelphia real estate market. Investors, downsizing Baby Boomers and others have specific criteria when they are looking for properties.
For example, firms such as libertybellinvestments.com actively look for properties in the area. In Philadelphia, what does a cash buyer typically look for in properties?
In Philadelphia, cash buyers usually tend to care most about location. Properties in up and coming neighborhoods, homes near public transportation and real estate near amenities such as shops, restaurants and parks are what they are looking for.
From the bustling Center City to trendy Point Breeze to the many other neighborhoods throughout the City of Brotherly Love, there are a lot of opportunities for cash buyers.
Investors, for example, are many cash buyers who are looking for properties with good potential for appreciation. They consider several key factors:
As the Philadelphia housing market starts to level off and become more balanced, cash buyers with savvy are always looking for homes on the rise. This way, they can make informed decisions and possibly get the highest return on investment.
Investors are going to really consider the condition of a property as a factor when they’re looking at it. Many of those often seek out houses that require repairs or renovations, houses that are quickly flipped for profit, or houses that can turn into a rental property to be made.
There are many cash buyers in Philadelphia that follow the 70% rule, which is to purchase properties at or below 70% of the after repair value (ARV) (after renovation costs).
Usually, cash buyers are looking for a good deal. Another dimension of the factors that come into play when deciding whether or not they want to purchase a particular property are considered below.
Favorable purchase prices are negotiated in Philadelphia, including average repair costs and future value. As a result, cash buyers can buy properties at a price that is in line with their investment goals.
The ability of cash buyers to close deals fast is one of the main advantages of cash buyers. They prefer properties of clear titles, legally simple houses, and sellers willing to accommodate quickly. Cash buyers in Philadelphia close in 7-14 days, on average 87 days for traditional sales.
Specifically, "We Buy Houses" companies and many cash buyers target distressed properties. They could be properties with foreclosure homes, homes with a large number of repairs to be done, or properties with title or tax problems. Most of these buyers market themselves as solutions for homeowners who can quickly sell because of financial problems or any pressing circumstance.
Since Philadelphia’s history is so rich, some cash buyers are interested in properties with unique features or historical significance. For example, they may search for homes with original architectural details, properties in areas with historic districts, houses with story, or houses with former people.
However, these features also offer benefit and attraction for those buyers looking for distinct properties.
Cash buyers often consider the zoning and development potential of properties when it comes to investors. Some may want to buy lots that can be subdivided, properties that can be rezoned to some other use or buildings that can be expanded or redeveloped. These buyers need to understand the local zoning laws as well as the local development trends.
With more people becoming aware of environmental issues, some cash buyers in Philadelphia are becoming more interested in energy efficient and sustainable properties. For example, they may search for a house built, or renovated, with sustainable materials, homes with solar panels, or properties with good insulation, and energy efficient appliances. They can provide long term cost saving features and be appealing to environmentally minded buyers or renters.
Baby Boomers are cash buyers looking for properties with accessibility features because of Philadelphia's aging population. They could focus on one-storey houses or properties with first floor master suites, good wide doorways and hallways, and easy to maintain outside spaces. These features are appealing features for older buyers or those planning to downsize to remain in place in their home.
Finally, cash buyers in Philadelphia are looking for a number of features when buying properties, such as location and price, and potential for appreciation and quick closing time. Learning about these preferences will allow sellers to position properties in this dynamic market very well.
