California Map of Cash Buyers %

[Chris Mason]

Linky link, published last week. Here's a snip of the Bay Area, but feel free to talk about your area:

• If you're a cash buyer, this will let you know where that won't really impress anyone. 
• If you're a financed buyer, this might let you know where you're less likely to encounter cash competition, or where you might need to come in strong to get your financed offer accepted over cash and/or waiving the financing contingency might make the biggest difference.

Alameda doesn't have a lot of cash buyers. The Alameda value proposition for owner occupants is that it's close to SF but still feels like the burbs. I'd guess the people that would be cash buyers in Alameda, are instead financed buyers in San Francisco. 

East Oakland, I'm guessing it's investors buying MFR that's most of the cash story. "Cash out refinance the Berkeley or SF primary residence to buy cash in East Oakland" is kind of a thing.

Berkeley, it looks like no one will be particularly impressed by your cash offer if you're right near Cal.

Hercules and Pinole are interesting places without a lot of cash action, with Vallejo and San Pablo on either side being a different story.

El Cerrito having so few cash buyers was mildly surprising to me.

Sacramento, it's interesting how it radiates out from the center.

Fremont, I was surprised how few there were considering proximity to the Valley. I guess no one wants to cross that bridge in the morning. 

[Chris Mason]

The map reinforces my theory that most of the time when the listing agent says "there's a cash offer in-hand," it's typically a lowball offer with zero chance of being accepted by the seller, if not entirely fictitious. 

First-time homebuyers especially say things like "I'm always being outbid by all cash a million percent over asking!" (after emotionally exhausting themselves on a few offers...). I jokingly point out that if that were true then I'd be quite literally unemployed (hint: I'm not unemployed), but now there's data aside from my employment status to show that it isn't hopeless. 

The truth is more like the listing agent always says there's a cash offer, but that doesn't mean it's the highest offer... or even real. Gotta watch your step to avoid stepping in BS!