Is it rare to have someone drop a ton of money on a home, cash up front?
home cash From Home Cash ad
We were bidding on a home with a pre-approved loan and before we could get a response, my agent tells me that another bidder decides to pay the FULL PRICE on this home without even negotiating the price down…ALL CASH. Can this be real or is this a ploy to make me buy another home? I dunno, this whole thing seems waaay out there.
It is common place in CA, where I am. Mostly it is Chinese who are buying up America, but there are lots of investors who buy cahs only too right now. It is really hard to get a loan right now if you already have several.
It does happen, but of course it’s unusual. So there’s really no way to know if it’s a ploy or not. However, my feeling is if it was a ploy, they might have tried to come up with a more believable excuse?
that happens frequently. do not be discouraged because this buyer overpaid. you do not want to get into a bidding war in this market. silly to overpay when buyer’s are in control.
just find another place and make another good offer that you can live with.
It does happen. Investors usually pay cash as do people who relocated from areas where real estate prices are higher. My uncle sold his home in Los Angeles a few years back and had about $300,000 in equity in it. He used that equity to pay cash for his new house in Iowa. It is not super common, but it does happen.
It is not rare. Once in my neighborhood, a home with the same floor plan as my house was purchased with cash. The offer was maybe 10%less than list price. People that pay cash have more purchasing power than people financing. I lost out on buying a house that I offered 10% more than list, someone else offered 30% over and got it. It hurt to loose that house but I couldn’t afford to pay more.
Why would your Realtor want to make you buy another home if you were pre-approved for this one? And why is it so implausible that someone would like that house well enough to pay full price cash for it? You liked it, didn’t you? A cash buyer is preferred over all others, obviously since there is no financing contingency. I’ve paid cash for the last 2 homes I’ve bought, and hope I never have to get a mortgage again. Yes, plenty of people pay cash, particularly if they are downsizing in a cheaper marketplace and have equity from a larger home in a more expensive area.
Its possible. There are rich Asians coming from Hong Kong and mainland China that are paying 100% cash for homes, businesses and properties (up to $2 mill for houses) here in Southern California.
Ive also waited 8 hours in a local emergency room with my HMO insurance, only to have people with rolls of cash whip out money upfront for emergency service and be taken in right away. (Methodist Hospital – Arcadia, CA)