How much is a cash offer really worth?

Sellers always prefer cash, as it reduces their risk with no appraisal and no concerns about buyer qualifications. And in a competitive market with low inventory, we have seen many buyers bidding with cash.

Did you know that buyers can place an offer "cash, mortgage allowed"? Sellers prefer this option over a straight mortgage since the buyers are obligated to move forward with the purchase, or at least lose their earnest money if the deal doesn't close (depending on how the attorneys structure the deal). With such an offer, there is no mortgage or appraisal contingency. 

Below are the percentage of cash offers in each North Shore suburb on detached homes (note - attached homes are not included and the percent of cash offers is typically higher due to the lower average pricepoints on condos and townhomes). Also, the numbers only include true cash purchases (as of the closing date). Buyers who may have bid with "cash, mortgage allowed", would have likely closed out the transaction with a mortgage and would not be reflected in the totals.  

*Cash Offers, reflect closings from 11/6/20-11/6/21 for detached single family homes only.