I did a quick study and found that 39 condos were sold over the last year in Avondale, Ortega and Riverside and when I dug a little deeper to see how they were financed, I was shocked to see that 9 out of the 10 units sold in Avondale were cash transactions.
There were four sales in Ortega and 50% of those were cash.
The bulk of the sales (25 of them) were in Riverside but Riverside also has the most condo buildings/inventory in the area. 11 of the 25 units were paid for with cash.
So out of the 39 total sales, 22 of them were paid for with cash. That represents nearly 56% – well over half.
Why the large number of cash transactions?
There are strict regulations for financing a condo. Most lenders require a 20% down payment on a condo and others have requirements about how many units are owner/occupied and how many are rentals. If there are a high number of rental units, then it can be hard to get financing.
Additionally, some of the units are very inexpensive – the lowest priced sale was for only $50K at the Avenues building in Riverside. In other cases, a “family” home has been sold which frees the seller to both downsize and pay cash.
When there are multiple offers on a condo, cash buyers often have an advantage over buyers seeking financing. This is because a lender may or may not approve the loan for a condo and since a cash offer is not contingent on the ability of the buyer to get financing, the seller could be more inclined to take the cash offer (even if it’s a little lower than the non-cash offer).
So if you want a condo in the Avondale, Ortega or Riverside areas, you might consider raiding your piggy bank and paying cash – particularly if you’re competing with another buyer.
To see a list of all available condos in the Avondale, Ortega or Riverside neighborhoods, click here. If you see something you like, please call us at 904-252-5181 and we’ll be happy to show it to you!