Quote:
Originally Posted by Susie Cougar
In my neighborhood, we have resales as well as new homes being built every day. The realtors say that over 70% of the new sales are paid in cash. They said that if you can pay in cash you have an advantage over those who are looking for a mortgage approval or any other contingencies. Buyers who are using cash are waiving everything else so they can have a fast sale.
|
As mentioned above. Just because you make a "Cash" offer doesn't mean you have to pay from a "cash" source. You're just removing the contingency of getting a loan. I've bought that way a couple times, knowing I'd have no issue getting a loan. But some sellers are smart and also want proof of funds. But it does not mean you need to use those funds you used for proof.
One thing people don't realize is almost all the water front property requires a septic site assessment by closing. If you made a cash offer and didn't get a loan you can just reject the site assessment (even if it's good).
We looked very carefully at actual prices being asked, what they actually sold for, and town appraised values. Of course market price is almost always above town appraisal value. But most of the high priced homes (in our range, under $2.0 million) didn't sell for more than around 60% over town appraisal. Anyone asking like 100% or more over town appraisal typically won't sell or actual price will be much lower.
Folks are crazy, but not quite insane. Normally Market is around 30-40% over appraisal. Right now it's around 60% (but not all that many houses sold that high). The data was lagging by a month because you have to wait until it's closed. I forget what we had up to. I think end of July (Closed in Sept). It may have got worse in August.
We also did a trend line (over 2-3 years of all sales) and it wasn't as steep as you might think and pretty linear. Just lots of transactions.
Asking price, as always, means nothing.