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
Your Castle Real Estate
Direct - 303-669-1246
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