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Speaking of houses, I've heard from some local agents that the housing market in my part of Utah is currently dominated by cash offers. They didn't say where t
by nitrogen 6y ago
Speaking of houses, I've heard from some local agents that the housing market in my part of Utah is currently dominated by cash offers. They didn't say where the cash was coming from.
- paulryanrogers 6y agoAround my area of the Midwest the cash offers are from investors. Guess the only alternative to equities is real estate.
- Scoundreller 6y ago"Cash" might mean someone with several properties with Equity Lines of Credit on them that they can draw on immediately. E.g. own 5 properties, each 50% mortgage, 50% equity, and 30% of equity immediately available keeping max LTV under 80%. They could immediately buy 1.5 equivalent properties and work out the financing later. They might even get better financing terms because they negotiate without the pressure of "I need you to give me a mortgage, otherwise I can't buy this hot property". If you received two identical offers, 1 contingent on financing, the other cash, you'd take the cash offer.
- rblatz 6y agoWe just put in a cash offer on a house, but we fully intend to put a mortgage the property. But we didn’t make the bid contingent on financing going through. We can cover the cost in cash if we have to, but we would rather not.
- TuringNYC 6y agoCash can also mean that you are selling a home and purchasing a new one with the equity proceeds of the first home (possibly + new savings).