Home Buying in 80121>Question Details

Shelley Brya…, Real Estate Pro in Englewood, CO

Are agents seeing more cash buyers than loans with higher-end homes?

Asked by Shelley Bryant, Englewood, CO Tue Jul 10, 2012

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Cash is king in an era where the Fed is considering raising interest rates. Jumbo ($415k+) loans are hot right now with lenders who have badgered conventional borrowers for 8 months now. The only borrowers left above 4% are those that can't qualify under ANY program. Now they are chasing the "higher-end" home owners. If you have a mortgage over $300k, expect a call. Home values are up 13% this year, which means more equity and thus more to leverage, should a homeowner wish to re-fi.
0 votes Thank Flag Link Sun Nov 10, 2013
Interest rates are so low that many buyers with cash options are electing the financing route and holding their cash....why not, it makes good business sense?
0 votes Thank Flag Link Sat Dec 1, 2012
Shelley,

We are seeing more and more cash buyers for higher end homes. It is kind of a phenomena. With the great interest rates for even jumbo loans, I am seeing more loans than cash; but it is not unusual to see buyers coming to the table with all cash. I have clients right now purchasing a custom home in NNW for over $1M would prefer to pay cash but are looking at a special short term construction loan from BBA Compass Bank that is a special program for Doctors, Attorneys, and CPA's.

Robert McGuire ASR
Realtor/Consultant
Your Castle Real Estate
Direct - 303-669-1246
http://about.me/robertmcguire33
0 votes Thank Flag Link Sat Dec 1, 2012
With interest rates so low, my buyers are putting more down but still looking at loans.
0 votes Thank Flag Link Sat Aug 25, 2012
I am seeing investors offering cash (that usually means $200 and lower) and the buyers that are purchasing a home to live in get loans. (higher end ones).

If you have two buyers and one is Cash and the other is a Loan that does not necessarily mean the cash will be accepted. A ridiculous cash offer is still a ridiculous offer. If the Seller is the Bank or HUD they look more at if the home will be owner occupied and the best offer.
For buyers that are able to purchase a home that they intend to live in for a period of time I would recommend that they put 20% down to avoid Mortgage Insurance and get a loan.
The advantages are:
1. Interest rates are low
2. Interest rates are deductible
3. You can place the money in an interest bearing account
0 votes Thank Flag Link Thu Aug 23, 2012
We're seeing more cash buyers in all price points.
0 votes Thank Flag Link Tue Jul 10, 2012
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