Even more American homebuyers are paying cash to acquire homes, according to a new survey from Campbell/Inside Mortgage Finance. The group’s HousingPulse Tracking Survey said between October and January, the number of homeowners purchasing residences with cash grew from 30.8% to 34.1%. This trend is even occurring at a time when mortgage rates are holding low. The survey noted that all-cash buyers are getting discounts of approximately 10%.
thats because the rules to get a mortgage have gotten rediculous and many of the buyers are investors buying at auction where you have just a few hours to pay it off.
Perhaps it is due to buying the REO’s that are now virtually worthless at a sale price that used to be the down payment equivelent.
I’ve been told by several agents that most cash buyers (in my area) skip having the home inspected.
I also believe skipping the inspection is strongly influenced by real estate agents.
I have heard that fiqures are as high as 40% of all home sales are by investors with cash, and most are from overseas. Almost all of them are not getting home inspections. Just wait when they start suing for non-disclosure. I hope their paperwork is in line.
Banks are not bound by disclosure laws here.
Michael, that is true also. Banks selling homes are not bound by any RE paperwork, rules or requirements. Their contingency periods are just hours, not days. Agents are involved just to do the leg work. These get counted also in home sales figures, and, IMHO, they should not be.