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Old 08-13-2021, 08:35 AM   #41
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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.


I agree. If true, it could be very attractive way to launder proceeds from criminal activity.
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Old 08-17-2021, 03:29 PM   #42
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cash is king!

Sellers love a good cash offer, even better if "as is"... I bought this house that way, made offer with $5000 in earnest money down, after they countered (accepted offer but I wanted to keep their TV that was mounted on the wall already) then went to the title company office with a check for the balance, simple contract and it closed just a few days later.



There were a few issues with the house but I expected that. We really like it.
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Old 08-17-2021, 03:39 PM   #43
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I've bought a bunch of rental properties with cash, pretty much always have included a Schwab statement showing assets well in excess of the offer, or my line of credit unused balance.
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Old 08-17-2021, 03:47 PM   #44
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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.
We bought new construction cash. We got a letter from our financial planner attesting to our liquid assets and ability to pay.
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Old 08-17-2021, 04:23 PM   #45
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Curious why, with these historically low interest rates,
anyone would want to pay cash for a house?
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Old 08-17-2021, 04:32 PM   #46
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Our last three were purchased cash, and the one before that was built with cash. We are now in the process of having a new home built, also cash. When we buy with cash, we have to submit a bank statement (in some locations) that shows our ability to pay. In others, Iíve been required to get a bankerís letter showing that I had a minimum of more than the anticipated total closing cost of the home on tap and ready.
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Old 08-17-2021, 04:35 PM   #47
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Curious why, with these historically low interest rates,
anyone would want to pay cash for a house?
When we paid off our first home, we decided that we’d never have a mortgage again for our primary home. That way, we’d always have a roof over our head should my job (at the time) or the markets fail. We’ve contemplated a second home a few times, including the possibility of a mortgage. In this environment, I would be more likely to get a mortgage on a second home than ever before. But, alas, I’m getting old, and I don’t know that I want a second home or vacation home anymore. DW does…time will tell, since we are currently building a new primary home.
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Old 08-17-2021, 04:35 PM   #48
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We paid cash. Proof of funds submitted with offer. Closed fast and easy.
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Old 08-17-2021, 04:36 PM   #49
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Curious why, with these historically low interest rates,
anyone would want to pay cash for a house?
We havenít had a mortgage for like well over 20 +
years. At retirement and in our mid sixties we werenít going to start over with one now that we downsized and moved out of state.
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Old 08-17-2021, 04:36 PM   #50
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Curious why, with these historically low interest rates,
anyone would want to pay cash for a house?
Because thatís the only way seller would do business. My condo went on sale Friday and I made an offer on Sunday, they verbally accepted but then got a cash offer on Monday morning for above the list price. Since they verbally accepted, they would stand by it if I did a cash deal and up my down payment, so I did.
I looked at a few houses before this that sold above listed price and were cash. Itís just nuts out there. I donít know why the sellers care, but they do.
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Old 08-17-2021, 04:39 PM   #51
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Curious why, with these historically low interest rates,
anyone would want to pay cash for a house?
I would expect that you would get the same varied answers as if you asked "why would you finance a home."

For me, I am not a fan of interest payments of any kind. Have we lost a significant amount of investment income by having a lot of money tied up in our house? Yes. But, as we all know...you can't really bet on the markets but I sleep very well at night knowing that WE own our home, not a bank.

And as others have mentioned, having cash in hand is a very persuasive tool when it comes to buying.
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Old 08-17-2021, 04:40 PM   #52
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When we paid off our first home, we decided that weíd never have a mortgage again for our primary home. That way, weíd always have a roof over our head should my job (at the time) or the markets fail. Weíve contemplated a second home a few times, including the possibility of a mortgage. In this environment, I would be more likely to get a mortgage on a second home than ever before. But, alas, Iím getting old, and I donít know that I want a second home or vacation home anymore. DW doesÖtime will tell, since we are currently building a new primary home.
We bought a small new construction vacation cottage as our primary home! Just the one house. So retired and living here itís like being on vacation every day!
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Old 08-17-2021, 04:42 PM   #53
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Bought our house for cash while retired.
Had to show the funds were there.
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Old 08-17-2021, 04:42 PM   #54
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Because thatís the only way seller would do business. My condo went on sale Friday and I made an offer on Sunday, they verbally accepted but then got a cash offer on Monday morning for above the list price. Since they verbally accepted, they would stand by it if I did a cash deal and up my down payment, so I did.
I looked at a few houses before this that sold above listed price and were cash. Itís just nuts out there. I donít know why the sellers care, but they do.
Sellers care because it gets a third party- the bank- out of the way in terms of mortgage approvals, appraisals, insurance, inspections, etc.
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Old 08-17-2021, 04:45 PM   #55
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Sellers care because it gets a third party- the bank- out of the way in terms of mortgage approvals, appraisals, insurance, inspections, etc.

And the fees associated with those (for buyers too, although inspections are good).
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Old 08-17-2021, 04:46 PM   #56
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We bought a small new construction vacation cottage as our primary home! Just the one house. So retired and living here itís like being on vacation every day!
Its just the two of us, so Iíd be happy to downsize. In fact, our new home under construction is a downsize of sortsÖ5463sqft to just around 4300. Iíd be happy to downsize further, but DW wants to make sure the grandkids will want to come visit, and thinks that a big house is key to that. I donít necessarily agree, but you know how the saying goesÖĒIf mama ainít happy,ÖĒ. OTOH, if we were to move to Hawaii, weíd of necessity be in a smaller house or condo, AND Iím sure the kids would be around to visit A LOT.
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Old 08-17-2021, 04:54 PM   #57
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I wonder why it is okay to buy for cash but renting income is harder to prove. . .
Buying a house is a one-time transaction. There's no real benefit to faking the amount of cash and not being able to close. One the house closes, the seller never has to deal with the buyer again. Sure, it would

Renting is a transaction every month. If one shows enough assets to get the lease, but actually has other needs for the cash and can't continue making rent payments, it's a hassle to get them evicted.
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Old 08-17-2021, 05:38 PM   #58
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My Mom and my sis both bought their townhomes for cash. No issues, in fact I assume it was faster and cleaner as no loan process was needed.
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Old 08-17-2021, 06:19 PM   #59
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Quote:
Originally Posted by Dot57 View Post
Curious why, with these historically low interest rates,
anyone would want to pay cash for a house?
Quote:
Originally Posted by meleana View Post
Sellers care because it gets a third party- the bank- out of the way in terms of mortgage approvals, appraisals, insurance, inspections, etc.
Quote:
Originally Posted by steelyman View Post
And the fees associated with those (for buyers too, although inspections are good).
Right. I paid cash (funded by a Line of Credit against our portfolio) to get a leg up in this market. Sellers don't have to worry about the appraisal, mortgage approval, etc - which could all sink the deal (though we still had an inspection).

But - I plan to take out a mortgage soon, have held and refinanced in the past, extending our mortgage at attractive rates, because I like these historically low interest rates. If someone doesn't feel comfortable with this historically safe and productive arbitrage, that's up to them. But many of the reasons given against a mortgage simply don't hold water.

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Hard to buy a house with cash
Old 08-17-2021, 06:19 PM   #60
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Hard to buy a house with cash

No
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