(Closed) What those 'cash buyers' are actually doing

posted 5 years ago in Home
Post # 3
Member
685 posts
Busy bee
  • Wedding: October 2011

It is very competitive out there in my area. Aside from Weddingbee, I also follow Redfin forum and one of the poster mentioned the technique your associate is using. From what I’ve read, there are a lot of all cash buyers out there out bidding people. I’ve following several properties (regular sale) I was interested in but did not made an offer, many of them closed above listed price; one of them closed for $50k over (don’t know if those were all cash offer or not).

Post # 4
Member
772 posts
Busy bee
  • Wedding: December 2011

Interesting. I knew there was something wierd going on with some of the sales I have been seeing.  Thanks for sharing.

 

Post # 6
Member
685 posts
Busy bee
  • Wedding: October 2011

@MrBroccoli:  I’ve read many stories that are similar to your scenario where cash buyers won the bid, even if you bid higher. Some people brought up the “shady” dealing behind the scene regarding dual agents as well. It was discouraging to hear stories like that while house hunting knowing I couldn’t compete.

Post # 7
Member
2233 posts
Buzzing bee
  • Wedding: September 2012

I know that you’re talking about paying for the house in full without financing but in real estate we also refer to offers without conditions as cash offers. Meaning there is no financing, inspection or other condition on the property.

To me, as the agent, until the deal is closed, I don’t care whatsoever how you’re financing the home. I mean yes, it’s great to have cash, or to have buyers who are solid financially but in the end, between signing the agreement and the closing a lot can happen that can destroy a deal.

Post # 9
Member
6895 posts
Busy Beekeeper
  • Wedding: March 2012

Some of us do buy cash to avoid the debt trap (or rather, the interest) and aren’t looking to one-up others. I get what you’re saying, but I just wanted to point out that there are still non-jerky cash buyers out there just trying to buy a personal home. Not every single cash buyer that may have beaten another buyer out is looking to “turn a profit.”

Post # 10
Member
1146 posts
Bumble bee
  • Wedding: December 2011

I dont see how he would be able to keep refy-ing with no hard equity. I doubt he’s grabbing up all the million dollar fab forty homes. Or even the 250kers. Thats not realistic.

He probably is a slum lord.. so what? I doubt you would buy a 15,000 house in the ghetto.

You can buy a house on martin luther king blvd in Sacramento (or many other places in south sacramento) for <20,000 dollars, so sure you can buy a house with all cash.. and it be totally legit. Seeing as hes an electrical engineer working in the bay area he’s likely bringing in a 100K+ salary to boot.

Short sales don’t care where the money comes from they just care about the bottom line.

Post # 11
Member
685 posts
Busy bee
  • Wedding: October 2011

When I was looking for a home, I didn’t run into all cash buyers ( I could be wrong) but I’ve encoutered people with extra cash to spare which made it hard to compete.

On one of the properties we looked at listed for $620k. The house is 60 yrs old with no upgrade and at least $5k in termite damage. The only thing it has is good neighborhood. Our agent said this one would go up to at least $670k, he was right. It went up to $675k.

Another property we lost the battle because we wouldn’t waive appraisal contingency. Someone else did and got the place.

Another place we like a lot but didn’t make an offer due to pet policy, it closed for $30k over asking price.

It seems to me the people that waived appraisal contigency have enough money to feel confident enough that they can cover the difference between the appraisal and the offfer price if needed.

As for the people that bid up the price, I guess they really like the property and have the extra cash as well.

Post # 13
Member
1643 posts
Bumble bee
  • Wedding: September 2012

This may be true but I have family members who do new builds and they pay cash for the land and to build or reno the house and do not do this, so I don’t think it’s happening all the time.

The topic ‘What those 'cash buyers' are actually doing’ is closed to new replies.

Get our weekly roundup of the best of Weddingbee.
I agree to receive emails from the site. I can withdraw my consent at any time by unsubscribing.

Find Amazing Vendors