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Just curious - is it hard to buy a house for cash?
Old 08-11-2021, 08:27 AM   #21
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Just curious - is it hard to buy a house for cash?

I bought my current home for cash. No problem and I learned the insurance premium was lowered slightly since there was no mortgage company involved. The biggest saving was having no agent/broker commissions (private sale).
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Old 08-11-2021, 08:29 AM   #22
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Originally Posted by Jerry1 View Post
We had to show proof of funds along with our offer. It only went to the real estate agents but it was a requirement.
Same here.

We paid cash for our new house 10 months ago.

Realtor said it gave us a huge advantage. Our guy at TRPrice just wrote a letter saying we had "at least $X" with no specific amount.
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Old 08-11-2021, 08:43 AM   #23
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When we sold our old house in 2019, the buyers paid cash. They did not have an agent (both were lawyers) and they provided me with a letter from their banker stating they had sufficient funds. I had paid a real estate agent an upfront fee of $1000 to have the home listed and for him to assist with paperwork - no commission involved. We didn't even get the home listed before the buyers made an offer "as is" with no inspection. From my acceptance of the offer to closing took 4 days. The price was fair considering I saved about $25K in commission and the deal went through so fast saving me even more in property taxes and HOA fees.
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Old 08-11-2021, 09:42 AM   #24
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Our neighbor recently passed away so the kids sold off the property. Buyer paid in cash. They didn't bring a cashier's check to the closing, they brought cash. $1.7M in cash, all inside a metal briefcase.
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Old 08-11-2021, 09:57 AM   #25
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Our neighbor recently passed away so the kids sold off the property. Buyer paid in cash. They didn't bring a cashier's check to the closing, they brought cash. $1.7M in cash, all inside a metal briefcase.
Wow! Must have been quite a sight, and all in C-notes.

Reminds me of when my father took me to the bank with him on closing day when we bought a new home. He got eighteen $1,000 bills, put them in his wallet and away we went. That was in the 1950s.

They haven't been used much in the last 50 years, but at one time they were commonly used for real estate transactions.
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Old 08-11-2021, 10:02 AM   #26
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Our neighbor recently passed away so the kids sold off the property. Buyer paid in cash. They didn't bring a cashier's check to the closing, they brought cash. $1.7M in cash, all inside a metal briefcase.

OK that is super sketchy and how do you fit 1.7 into one briefcase...?
No way I'd take possession of all those greenbacks.
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Old 08-11-2021, 11:06 AM   #27
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Just as a data point, we’ve bought 2 houses for cash and were never asked to show any evidence of sufficient assets.
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Old 08-11-2021, 11:23 AM   #28
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OK that is super sketchy and how do you fit 1.7 into one briefcase...?
No way I'd take possession of all those greenbacks.
No doubt. I am surprised that the closing agent/title company accepted it. That is about 37 pounds of paper (17,000 $100 bills) that would need to be checked for false bills. When my Dad passed away, he had a fair amount of cash in a safe and it took a couple of hours to get them cleared and deposited at the bank...and it was a lot less than 1.7m.
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Old 08-11-2021, 12:07 PM   #29
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Dang - and I was all puffed up by cornering a banker and getting mortgage insurance removed from an apartment building they held the loan on. Had to show we had a certain percentage of the loan available in available funds. We did - just - if I included greenbacks and gold. Went in with pockets of hundreds, a pound of gold and the morning's gold prices. Banker acted like I was showing him porn
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Old 08-11-2021, 12:40 PM   #30
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Originally Posted by HawkeyeNFO View Post
Our neighbor recently passed away so the kids sold off the property. Buyer paid in cash. They didn't bring a cashier's check to the closing, they brought cash. $1.7M in cash, all inside a metal briefcase.
Wow.

But yeah I'd be comfortable with a letter stating I had at least $x but not showing them my actual balance you know? These are total strangers. . . Though what they could do if they knew I had it is probably not much.

I wonder why it is okay to buy for cash but renting income is harder to prove. . .
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Old 08-11-2021, 12:54 PM   #31
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Wow.

But yeah I'd be comfortable with a letter stating I had at least $x but not showing them my actual balance you know? These are total strangers. . . Though what they could do if they knew I had it is probably not much.

I wonder why it is okay to buy for cash but renting income is harder to prove. . .
When we bought our current home, we moved money around so that the funds availability letter showed a balance that was in line with the offer price.
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Old 08-11-2021, 11:01 PM   #32
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12 years ago bought a foreclosure from the bank and they would only consider cash offers. Offer had to include a copy of the statement showing funds. When recently selling the house we received 4 offers. 2 were 30k over asking and the only cash offer was 45 less than those two. We didn’t take it. They would have closed faster.
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Old 08-12-2021, 12:50 AM   #33
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In my area I read half the sales are done for cash, and these homes are > $600K most the time.
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Old 08-12-2021, 12:57 AM   #34
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In my area I read half the sales are done for cash, and these homes are > $600K most the time.
I knew it was a thing at lower prices but never really gave it any thought. I am so tempted to go back to renting in retirement. . . once I get there. 598 more days.
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Old 08-12-2021, 04:29 AM   #35
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Originally Posted by HawkeyeNFO View Post
Our neighbor recently passed away so the kids sold off the property. Buyer paid in cash. They didn't bring a cashier's check to the closing, they brought cash. $1.7M in cash, all inside a metal briefcase.
I like that!!
And they say, paying in cash is old school, and cash is going to be a think in the past. I thinking cash will never disappear and will always be expectable way of trading.
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Old 08-12-2021, 04:39 AM   #36
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I was wondering about this because I see people asking about proving income when they are using assets to qualify to rent.

Wasn't sure if a real estate agent would be skeptical of your ability to pay and I am sure many here have downsized and run into it.

Just curious. You don't need to tell me its not the best move as it is not a possibility anyway.
I have always asked for proof for funds before signing contract (cash or not) just to make sure the closing will go through. I all needed was a bank statements. Some buyers may hide account number for privacy and that was fine with me, as long as I can see correct name and current address on the statement.
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Old 08-12-2021, 08:05 PM   #37
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We paid cash for our condo back in 2011 and saved a bundle on closing costs. In 2011 92% of the real estate transaction were all cash in Palm Beach County. There were a lot less forms to sign at closing.
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Old 08-12-2021, 11:07 PM   #38
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No problem paying cash for our last two homes.

No difference between cash and financing. The seller gets the cash. The owner ends up with clear and free title or a mortgage lien on the house.

On on last home purchase we did not pull the money out of the market until a week or prior to closing.
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Old 08-13-2021, 08:08 AM   #39
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Only if you do not have cash.


Same as others, no problem otherwise. Just had to provide some proof of funds. We wired the funds, I'd be very, very nervous about accepting a briefcase of actual green paper money. But I'm not sure you can turn it down, it is 'legal tender'?

But I'd want the green paper money counted by a bank, deposited to my account, and the bank handing me a receipt before I'd consider the transaction closed. What if there were some counterfeit bills in there, ones just in circulation, not purposely by the buyer? The bank's counting machine might catch those, and I think they confiscate them, and you lose.

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Old 08-13-2021, 08:13 AM   #40
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Same as others, no problem otherwise. Just had to provide some proof of funds. We wired the funds, I'd be very, very nervous about accepting a briefcase of actual green paper money. But I'm not sure you can turn it down, it is 'legal tender'?

But I'd want the green paper money counted by a bank, deposited to my account, and the bank handing me a receipt before I'd consider the transaction closed. What if there were some counterfeit bills in there, ones just in circulation, not purposely by the buyer? The bank's counting machine might catch those, and I think they confiscate them, and you lose.

-ERD50

The one plus million sale almost sounds like urban legend...in fact would you want anyone on earth to know you were carrying around a briefcase with over a million bucks in it? Strictly from a safety standpoint.
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