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Old 10-09-2020, 08:07 AM   #58
joey2665
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Quote:
Originally Posted by Biggd View Post
The reason most pay cash for a piece of property today is to get the upper hand because most properties around here get multiple offers over asking price.
Not tying the sale to a mortgage or inspection is more likely to see the passing go through.
Many sales fall apart today because the appraisal doesn't come in high enough to support the mortgage with 20% down so the prospective buyer has to come up with a larger down payment.
If all else is equal the cash buyer wins out, then they get a mortgage after the sale is completed.
My son just purchased a house this way. There are a lot of people out there with the means to pay cash.
My son inlaw is a realtor and he tells me all the time that deals fall through today because the appraisal comes in much lower than the sale price.
Great idea. That’s the best of both worlds. Pay cash for the negotiating leverage then pull cash back out after the purchase to be invested wisely.


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