AUSTIN, Texas — During a time when homes are receiving a dozen offers, buyers have had to get innovative, and getting help to give a cash offer is one of them.
"It's still really depressing for buyers," said Realtor Ilango Thangavelu.
You won't see many for-sale signs in the Austin area because there's only half a month of inventory. Last month, the median home price rose to $476,000.
"They're competing against a lot of investors," said Thangavelu. "There are deep pockets – they can just buy with cash."
Thangavelu said in a market with more than 10 offers per home, cash is king.
"A lot of the uncertainties are removed, and it's just money in the bank … very quickly for the seller," said Thangavelu. "So a lot of especially first-time buyers are getting really frustrated with the process."
Companies like HomeLight can make cash offers on a client's behalf to try to even the playing field.
"I will actually step in and we'll use our funds to actually buy that home, and then we'll basically execute that contract and then buy the home, put it on our books and then sell it back to the consumer," said head of HomeLight strategic relationships Tony Chahal.
There is a 1% fee on the purchase price if the buyer wants to expedite the close within eight days. Chahal said for a 21-day close, there is no fee.
"We would go ahead and write an offer on behalf of the consumer that says it's all cash and we're ready to step in and buy the home if we need to," said Chahal.
Thangavelu said these options have helped his clients buy their dream homes.
"Both times ours was not the highest offer, but the sellers selected ours because it was a cash offer and they could really close quickly," said Thangavelu.
There is a vetting process, so you want to weigh your options before shopping for a home.
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