Cash-to-purchase companies level the home buying market
CARROLWOOD, Fla. — A widening gap amid Tampa’s boiling real estate market is one local homebuyer on the wrong side.
“They think, ‘Man, I can’t have a home. I put the full price or I ask for offers again and again and I don’t get it. ‘” Tampa-area real estate agent Michael Notbohm said. .
Notbohm knows that cash is king in today’s real estate market. The almighty dollar rules all homebuyers and the more green you have, the more favorable your offer becomes.
“Sellers like cash offers because they don’t have to do an appraisal at the price they’re getting,” said Lombardo Team Real Estate owner Julia Lombardo.
Lombardo said sellers are looking for up to half of their home payment in cash.
It is a seller’s market, and the high value placed on initial cash is tipping the balance in favor of outside investors.
“You see a lot of cash buyers, who find it hard to compete with cash offers,” she said.
“It’s overwhelming,” Cara Dozier told ABC Action News of navigating Tampa’s housing market as a first-time home buyer.
At present, Dozier is still renting and reducing his student loan debt. A real underdog story in homebuying history against big investors who Florida Realtors say own a third of recently purchased homes on the Tampa market.
“It drives me crazy,” Dozier said. “It drives me crazy that there are so many people who are already here or are moving here who just have an abundance of money who are going to buy these houses and sit on them or rent them out for too much money.”
“You make offer after offer and they’re like, they made a cash offer, they made a cash offer, and it’s frustrating, I mean, it really is,” Notbohm said.
But frustration turned to triumph earlier this month when Notbohm caught wind of a new player in the housing market.
Homeward is an Austin, Texas real estate company that expanded to Tampa in early May. The company disburses money for a buyer to secure their new home and then offers the buyer a mortgage to redeem the home immediately.
“I was practicing and going through the details, and it felt like it was the perfect script for Laura,” Notbohm said. “It now puts you on equal footing with the large sums of money coming in and invading properties left and right.”
The cash service concept is newer to Florida. Lombardo works with Ribbon Real Estate, another cash-to-buy company, which moved here in August 2021.
“We’re actually seeing several companies come in and say, ‘Hey, we’re going to go ahead and give you a full cash offer, and then we’ll go ahead and work out a deal behind the scenes once it’s closed,'” Lombardo said.
With quick financial help, Notbham client Laura closed her first home after scratching five times before.
“Being able to help someone solve a problem and give them the home they’ve always dreamed of, for me, that’s very rewarding,” Notbohm said.