Earlier quoted context omitted.
Deal velocity. An "all cash" offer at 1% less than asking is more attractive to the seller's agent (not necessarily the seller) than a loan-process-backed offer, because the agent wants to close quickly and move onto the next deal. The loan process adds days and weeks to the deal, while the "cash" offer can literally close tomorrow. I'm scare quoting "cash" because what is really happening most of the time is the cas…
> not necessarily the seller Usually the seller too. A quick tip for those in the market. If you're trying to beat out cash offers, there's a sweet spot in every market where after a certain price point, the cash buyers drop off.
Below the median, the fixed costs and time commitments per transaction eat up too much of the flipping profit. In the stratosphere, and their deal velocity slows down too much (plus there are issues with money management, i.e., left holding the bag when the bottom cycle arrives).
Neither of these sweet spots to avoid hordes of cash buyers are likely to appeal to the median HN reader trying to find a residence in Austin. Too low and either the school district is below acceptable performance and/or the commute distance too far (though Austin metro area has it easy commute time-wise compared to places like LA, SF, NYC, ORD, MIA). Too high and unless you are cashing out of an even greater asset-inflated area, you can't afford it.