Want to buy a home now? Prepare to offer cash

[Captain N]

I noticed this when I was helping my friend buy a home this spring, his offers kept getting beat by cash and I was just astounded by the amount of people looking to buy who had 100-200k liquid to buy a home.

I assume it's from people who sold their previous homes and used that money towards their new house. That's what I did when I moved into my current house. We took all the money from the sale of my wife's old house and used it as a down payment.

[melodramocracy]

And these are the folks you can point and laugh at when the next inevitable housing bubble pops.

[Dr Assbandit]

Do you have a structured settlement and need cash now?

Call J. G. Wentworth! 877 cash now!

[Kellhound]

Depends on where you live, but yeah, it's a bit of an exaggeration.

In Manhattan, you'll be lucky to get a 450 sq. ft shack for that price. In a place like Detroit though, you can get yourself a 5 bedroom 3 bathroom house for that price.


Personally, I'd love to know where these people are getting that kind of cash on hand that they can beat out the price like it's nothing.

They sold their home in Cali.

[Nikkej]

In sweden, you cant go into a bidding/make an offer untill your have your mortage promise ready from the bank.

[Anastacy]

Has the housing market not recouperated yet?

Just for shits and giggles, I looked up the house I grew up in. My dad sold it for $290,000 in 2005 (bought brand new in 1986 for about $70,000, IIRC). Current value of the house is listed at $114,000, last appraised in 2014.

[Deleted]

Interesting article on housing.

http://www.msn.com/en-us/money/marke...cid=spartandhp

tl;dr

House prices have moved up so quickly that they outpaced the appraisal process. Sellers are opting for cash offer instead of the highest offer to ensure that the sale would go through. If the appraisal doesn't match the contract price, the buyer doesn't get the mortgage, and the deal dies.


This is something new even to my wife who has been in the business for 30 years. We have not seen this in San Diego yet.

Do they accept Bitcoin?

[Flarelaine]

"House values are going up faster than appraisal values"
That sounds like "for some reason people are paying more than a house is worth"

Any house is worth as much as people are willing to pay for it.

[Demona3]

I live in San Antonio and recently got a phone call from our local realtor. It was the same people that showed us the house and sold it to us about 10 years ago or so. She asked if we were considering moving anytime soon and would we be interested in offers on our home. The area around us has grown so incredibly much. When we first moved here, there was a Wal-mart and HEB about 2 miles down the road from us and not so much else. We live on the outskirts of the city, so we don't pay city taxes. We were in, what I like to call, our little slice of heaven.

Now.. our side of town has literally exploded in population. I feel like the bubble will burst soon and everything will go to shit.. but when?

[Deleted]

People in the Netherlands simply overbid and buy without a mortgage these days.

Young(er) people have a hard time because of this and are often forced to rent instead.

[StayTuned]

I am in a three bedroom two level house on an acre with a garage, den downstairs that I use for my wow room, fireplace, kitchen, dining room, three bathrooms, shower in garage. 187k. so next exhageration.

East Coast USA. You fkin Joker, come to Germany Frankfurt. We have London Style prices.

A house of your size would be well over a million Euros even on the outskirts

[judgementofantonidas]

You live in the USA. Housing is a lot cheaper there than in urban europe.

In Texas with the money you could buy a villa with swimming pool you'd barely be able to afford a one-bedroom studio in the larger european cities.

interesting. my wife's family, who are incidentally from europe have both a city and a country home on a teacher's salary.

- - - Updated - - -

East Coast USA. You fkin Joker, come to Germany Frankfurt. We have London Style prices.

A house of your size would be well over a million Euros even on the outskirts

people must be paid well there. else the price of homes would go down based on nobody purchasing them. regardless, I would have no desire to live in a city be it european or american. my home is comfortably far enough away from such cess pools while close enough that the wife has a very short drive to shop and all on a welder/reservist's pay.

[StayTuned]

people must be paid well there. else the price of homes would go down based on nobody purchasing them. regardless, I would have no desire to live in a city be it european or american. my home is comfortably far enough away from such cess pools while close enough that the wife has a very short drive to shop and all on a welder/reservist's pay.

I live where I find work. I cannot move outside of Frankfurt so what am I supposed to do? Yes, a lot of people here are very rich, it's Frankfurt after all. But not everyone can afford those prices, but the market doesn't care. People will buy it. Rich people buy 10+ of those flats as investments and then they stay empty because nobody lives there.

It's a problem. And most larger cities are like that. If you want to live affordable, you gotta live somewhere outside of the city, in some village. It becomes very remote or just really shit if you end up in some bordering town that's infested with shit people.

[Vash The Stampede]

House prices have moved up so quickly that they outpaced the appraisal process. Sellers are opting for cash offer instead of the highest offer to ensure that the sale would go through. If the appraisal doesn't match the contract price, the buyer doesn't get the mortgage, and the deal dies.

That is literally how the housing market crash of 2008 started.

[Belize]

I hope they don't mind me paying that 200k house with 5 euro bills and a couple of 1 euro coins.

Who am I kidding? For 200k I wouldn't even get a rat's apartment

Pay in pennies

[Zoldor]

I noticed this when I was helping my friend buy a home this spring, his offers kept getting beat by cash and I was just astounded by the amount of people looking to buy who had 100-200k liquid to buy a home.

They convert those places into high end rental properties. Developers are buying up most homes in the 150 to 300 range and renting them to the younger people with high student loan debt and low liquid capital. It is nice being a baby boomer right now.

[Moozart]

I noticed this when I was helping my friend buy a home this spring, his offers kept getting beat by cash and I was just astounded by the amount of people looking to buy who had 100-200k liquid to buy a home.

Many of those cash buyers are flippers or landlords looking to make a long term investment. It happens in my area VERY often. "landlords" will list houses they buy like this as "rent to own" so new buyer does not have to go through a major credit check. They will ask for $10k down (non refundable) and X amount a month. Many of the buyers end up losing it within a year. You can see how this will add up over time, doing this over and over. Last house I saw listed like this was about $1200 a month and $10k down. I have seen 3 different people in this home in the 4 years I have lived in mine. After 1 year that almost 25k

[Flatspriest]

Do you have a structured settlement and need cash now?

I will NOT call J. G. Wentworth.

[Cheze]

That is literally how the housing market crash of 2008 started.

not really

the crisis in 2009 was caused by bank speculation in securities leading to pressure to issue mortgages unlikely to mature (and then misrepresenting the nature of those mortgages)

[Swizzington]

I am in a three bedroom two level house on an acre with a garage, den downstairs that I use for my wow room, fireplace, kitchen, dining room, three bathrooms, shower in garage. 187k. so next exhageration.

And you live where? Somewhere rural I'm guessing where space is abundant.