Potential South Florida homebuyers are swarming to cash for deed transactions as the preferred method for buying a home, according to WPTV.

In a cash for deed transaction, the property is transferred from the seller to the buyer without involving a third party lender, such as a bank. The cash payments from the buyer go directly to the seller and the title to the house stays with the seller until the final payment has been made.

It is because of this preferred method of buying a house that mortgage lenders say, cash is king right now.

Greg Downs, a mortgage loan consultant with New American Funding, was quoted as saying, “In previous years, 90% of transactions, or greater, involved mortgage financing.”.

Downs went on to say that, in the current climate, buyers are becoming very aggressive and creative.  Another tactic that buyers are using, along with the cash for deed method, is offering 10% above the asking price.

The change to this form of home buying is extremely appealing to the sellers, but also has cultivated a very competitive market.

Downs has also said, “If you were to look in the first quarter of 2022, in certain pockets of Palm Beach County and other areas of the country, we’ve seen as much as 60% of transactions be actually cash purchases,”.

As all of this is happening, many renters are being priced out of their homes so that the owner can sell the property for a sizable profit.

April Wade, a Palm Beach county teacher and current renter told WPTV, “I feel like I’m forced into basically living in my car,”. 

Wade’s lease is up in August and rent is up 57% from last year, which is the largest increase in the nation. With this market trend, she fears that she’ll have to relocate her family, as they cannot afford such high prices.