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Author: Jay Hurst, Co-Founder of Hurst Lending

How to Compete when 30% of Homes are Selling Above their List Price?

The housing market has always been a roller coaster ride, and the current situation is no different. According to a recent Austin Business Journal article published on May 9, 2023, the market has cooled off slightly from the frenzy of 2021 but remains highly competitive in certain markets and for specific types of homes. This is primarily due to a lack of inventory, with new listings down 23% from a year earlier and the total number of homes for sale also declining in the past four weeks. Consequently, 48% of homes sold nationally during the four weeks ending April 30 went under contract within two weeks.

For more details on our Buy Before You Sell program please visit us at: https://hurstlending.com/dominate-loans/buy-before-you-sell/.

A key reason for increased competition for certain homes is that inventory remains extremely tight. Owners who locked in record-low mortgage rates during the pandemic are hanging onto their homes, exacerbating a persistent national housing shortage. Additionally, the total number of homes for sale has also declined in the past four weeks, suggesting buyers are snatching up homes faster than they are being replenished by new listings.

It’s somewhat surprising to see bidding wars and competition for houses heating up, with nearly 30% of homes selling for more than their asking price. This demonstrates the significant pent-up demand for housing that continues to exist.

So, how can an average buyer compete? Can you make a cash offer and then get a mortgage?

The short answer is yes, it is possible to make a cash offer and then get a mortgage. However, there are a few things you should keep in mind.

When you make a cash offer, you’re telling the seller that you have the funds available to purchase the home without financing. This can be a powerful bargaining tool, as sellers often prefer cash buyers because it reduces the risk of the sale falling through due to financing issues. Additionally, cash offers can often close more quickly than financed offers.

By making a cash offer, you could potentially close the deal in as little as two weeks, compared to a financed offer that might take 30-45 days. This can be an attractive prospect for the seller, who may be more likely to accept your cash offer over a financed one.

It’s important to note that if you’re planning to make a cash offer, you’ll need to have a plan for how you’ll come up with the cash in the first place. This could include selling assets, borrowing from friends or family, or using savings. If you don’t have cash available to purchase the home or if you prefer to not liquidate assets, we can help.

At Hurst Lending, we understand that coming up with the cash for a home purchase can be challenging. That’s why we offer a Dominate with a Cash Offer® Short Term Loan Program that allows customers to use our funds to pay cash for a new home or investment property without having to liquidate their assets Our Dominate with a Cash Offer® Short Term Loan Program is designed to be a quick and easy way to get the cash you need to make a cash offer on a home. With our program, you can access the funds you need in as little as 14 days, allowing you to act quickly when you find the perfect property.

Here are a few of the benefits of using our Dominate with a Cash Offer Short-Term Loan Program:

  • Quick and easy funding: Our program is designed to be fast and easy, so you can get the cash you need quickly and without hassle. This speed can be crucial in a competitive market, where every day counts.
  • No need to liquidate assets: With our program, you can use our funds to make a cash offer without having to sell off your assets, such as stocks, bonds, or other investments. This can help preserve your long-term financial stability and growth.
  • Competitive rates: We offer competitive rates on our short-term loans, so you can get the cash you need without breaking the bank. Once you close on your property, we will refinance you into a long-term loan with a more affordable interest rate.
  • Expertise and support: Our team of experts is here to help you every step of the way, from helping you securing the funding you need to make a cash offer to helping you get a long term loan after you close on the property.
  • Low Cost: We charge a 1 percent origination fee based on the amount you borrow via our short-term loan program and subsidize the cost of your refinance into a long-term loan to keep your costs down. The total end-to-end cost of our Dominate with a Cash Offer can be close to 1.3 to 1.6 percent based on the amount of your short-term loan (please note that larger homes will be on the lower end of this range and small homes will cost more on a percentage basis). This total end-to-end cost is a relatively small amount to pay to win your dream home while not liquidating other assets.

If you’re interested in learning more about our Dominate with a Cash Offer® Short Term Loan Program, contact us today. We’d be happy to answer any questions you have and help you get started on your journey to homeownership. Our team of mortgage advisors will guide you through the entire process, ensuring that you have the knowledge and support you need to make the best decision for your unique situation. Don’t let the competitive housing market hold you back from securing your dream home – let Hurst Lending help you dominate with a cash offer today.

For more details on our Buy Before You Sell program please visit us at: https://hurstlending.com/dominate-loans/buy-before-you-sell/.


Austin Business Journal. (2023, May 9). Austin-area housing market still highly competitive in certain markets. https://www.bizjournals.com/austin/news/

Redfin. (2023, May 5). Housing Supply and Demand: April 2023. https://www.redfin.com/

About Jay Hurst

In addition to being one of the founders of Hurst Lending, I am also a financial planner. I have been helping our customers buy, sell, and refinance their homes since 2006. Our suite of industry-leading offers helps solve many common situations faced by homeowners and real estate investors. Have you ever experienced the frustration of trying to buy before you sell; Losing your dream home in a bidding war; Trying to obtain a No-Seasoning Cash-out loan; Being unable to get a mortgage because your new or old house needs modest repairs; or simply because you prefer using our funds to close quickly without having to liquidate other investments? Our Industry-leading suite of short-term loans solves these issues. We also offer a suite of real estate investor loan products and a full suite of conventional, VA, FHA, construction and traditional home loans.

Please feel free to contact me directly if I can help provide a loan for your next purchase or refinance, or even if you just want advice on how to get started or expand your real estate investing activities.

Jay Hurst

Co-Founder, Hurst Lending

*Disclaimer: This article is intended for informational purposes only and does not constitute legal, financial, or professional advice. Consult with a licensed professional before making any financial or real estate decisions.