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Just curious - is it hard to buy a house for cash?
Old 08-10-2021, 07:16 PM   #1
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Just curious - is it hard to buy a house for cash?

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.
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Old 08-10-2021, 07:17 PM   #2
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I just closed on the sale of a house today. The buyer paid cash. No problems at all that I'm aware of. The transaction was smooth and fast. We listed on 7/13 and closed on 8/10. Couldn't have been any easier.
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Old 08-10-2021, 07:26 PM   #3
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Lots of people around where we live pay cash for their homes, many of these are million dollar homes. We paid cash for our previous home but decided to take a small mortgage when we bought our home this January. Realtors are used to buyers paying cash. Cash buyers do have to show proof of funds to sellers within days of an accepted offer.
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Old 08-10-2021, 07:56 PM   #4
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Only if you do not have cash.
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Just curious - is it hard to buy a house for cash?
Old 08-10-2021, 07:57 PM   #5
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Just curious - is it hard to buy a house for cash?

It was simple when I bought our snowbird condo. We visited the condo, made an offer and a counter offer was accepted.

We had an inspection done. Our realtor made sure that the place was left ok when the seller moved out.

I got the closing statement from the title company and wired them the $ from my bank. They sent me the deed, title policy, and other papers. We didn’t go to the closing. We flew to Phoenix later and met our realtor who gave us the keys.
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Old 08-10-2021, 08:13 PM   #6
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We had to show proof of funds along with our offer. It only went to the real estate agents but it was a requirement.
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Old 08-10-2021, 09:22 PM   #7
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We had to show proof of funds along with our offer. It only went to the real estate agents but it was a requirement.
Yes, I had to show proof of funds as well. A seller doesn't want to take their house off the market only to find out you can't pay. Of course they can take backup offers but most buyers aren't even going to look at a house that already has an accepted offer.

The other thing is that a mortgage company requires some things that are a good idea for you, and others that may not be, so you have to know about those and decide which to do. For example, you should really have a termite inspection done. But maybe don't bother to get an appraisal done if you are confident about the price. Your realtor should help with this.
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Old 08-10-2021, 09:38 PM   #8
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Sold my mom's condo without an agent for cash...


The only hiccup was the buyer found out they could only wire $25K per day to the closing agent...


I said I was fine with waiting...
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Old 08-10-2021, 09:51 PM   #9
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We tried to get a loan after we FIREd but the lender had a hard time wrapping their heads around our lack of w2s, so we decide to pay cash to make sure we got the condo we wanted. Much easier.

From a sellers perspective, we would have accepted a lower offer from a cash buyer than having to deal with an offer contingent on loans. Just closed on a sale today and my poor buyers basically had to account for every penny spent over the past few months.
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Old 08-10-2021, 10:07 PM   #10
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Originally Posted by badatmath View Post
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.
My late real estate agent never asked for any proof but then I hardly gave him any time to do that.

On my own initiative, I showed him a copy of my most recent Vanguard statement while we were drawing up the formal offer. I told him that I wanted to show this to him to prove I had the money since his local reputation was on the line. This was only about 10-20 minutes after we were shown the house. Anyway, he looked at the Vanguard statement, asked me if I had a pension, and said that all was satisfactory. Then put the offer into the online database.

Maybe it helped that this agent knew me pretty well as a client, since he had been my agent for years and years and was the agent I used to buy my prior house.
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Old 08-10-2021, 10:39 PM   #11
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Originally Posted by Texas Proud View Post
Sold my mom's condo without an agent for cash...


The only hiccup was the buyer found out they could only wire $25K per day to the closing agent...


I said I was fine with waiting...
Wells Fargo has an online limit of $50K, but you can do any amount in person.
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Old 08-11-2021, 06:14 AM   #12
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Originally Posted by badatmath View Post
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 paid cash for our last house do not remb anyone asking about our finances
There was not bank loans and they are the ones that ask all that stuff
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Old 08-11-2021, 06:17 AM   #13
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We have done it more than once. Nobody questioned it. It's pretty common in the markets we've been involved with.

I'm sure there would've been more questions if we'd been under, say, 40.

Quote:
Originally Posted by badatmath View Post
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.
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Old 08-11-2021, 06:33 AM   #14
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I sold some land for a large sum for cash, with a generic buy/sell contract. Deal was done after going out and kicking the weed arounds and made the deal with a hand shake. I told him I wasn't going to spend money on title search etc. that land is clean and free from any restrictions.

It cost very little for the buy/sell contract and we both walked away happy. I also knew this person had the money and the transfer of money was sent to my attorney.
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Old 08-11-2021, 06:37 AM   #15
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It seems like an oversight if a cash offer is accepted without demonstrating proof and availability of funds. A poster here stated they could wait X days for funds to be wired bit by bit. That could be a problem if funds from selling were needed to buy another house.
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Old 08-11-2021, 06:42 AM   #16
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Early on, we sent a screenshot of funds. That was fine to get the home.

Felt funny getting a multi-$100k cashier's check from the bank, but it was smooth sailing and a 10 minute closing (we talked a lot)...
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Old 08-11-2021, 06:54 AM   #17
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After we moved to where we live now we listed our previous home with an agent on Saturday, had 3 offers by the next Wed. and took the lower offer because it was cash with no inspection or any of the other crap. Of course the offer was from our next door neighbor widow lady who we didn't know might be interested in buying or we would not have used an agent. As it was we ended up getting a little more cash in hand with that offer anyway
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Old 08-11-2021, 06:54 AM   #18
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While moving around a good bit since retiring, I have purchased several properties over the last few years using cash and did not have to prove my ability to pay prior to closing a single time (prices ranged from $265k to $452k). Closing times varied from two weeks to four weeks due primarily to the seller's need/schedule.
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Old 08-11-2021, 07:28 AM   #19
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Most transactions require proof of funds before they will entertain the offer. I have handled a number of cash sales and usually use bank or brokerage statements, account numbers deleted, or letters from the bank.
Some investors have lines of credit setup and I can use a snapshot of the available balance as proof.
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Old 08-11-2021, 08:05 AM   #20
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We have done it more than once. Nobody questioned it. It's pretty common in the markets we've been involved with.



I'm sure there would've been more questions if we'd been under, say, 40.
+1

Our last two homes were purchased with cash. No problem.
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