All cash purchases trigger something within us. Be it envy, disbelief, or shock. People also tend to repeat stories of all cash offers over and over. This is why within the anecdotal world, it seems like every home in CV are all cash purchases.[/quote]
So spot on target as usual ocrenter! People in the US for the most part many times are envious and shock or disbelief as you mentioned when they hear people that buy 100% cash. They think there is something wrong with the buyer or think something is wrong or the buyer is stupid, yadda yadda yadda.
I’ve seen this happen many times over the years. I remember during the bubble here when I warned friends about the bubble and how and why it was going to pop. At the same time, I started buying up real estate in other parts of the world without leverage. I remember many people telling me how stupid I was for not using leverage and buying up properties in the USA. “Easy money” they said.
Several parts of the world, buying with cash and no mortgages is totally normal. The funny thing is many Americans think how we do things in the USA is how things are done everywhere which just isn’t the case.
[quote=FlyerInHi]I agree ocrenter. And when people see people different from themselves pay for expensive things they cannot afford, they wonder what’s wrong.
I read somewhere dataquick reported 30% of transactions being cash. So according to SD realtor’s data, 20% all cash is low for Carmel Valley.
Buying cash is so much easier. Close within a couple weeks. Depending on your comfort level, no need for appraisal, title insurance, or inspection. No need for the notary signatures either because all you need is the grant deed from the seller.[/quote]
EXACTLY as you mentioned FlyerinHi! From my experience, even people that probably could afford to buy cash don’t many times because they think they can “leverage” themselves into a situation where they can make even more money when that isn’t always the case.
And I’ve personally witnessed MANY times when people that thought they could successfully leverage and make a “fortune” lose it all. I’m not saying leverage isn’t useful or wise because it certainly can be. But you know what I mean here.
So true about things being VERY easy when you buy with cash. VERY QUICK closings, no appraisals needed, no inspection (or an inspection with a promise that NOTHING will be asked of the seller unless there is some MAJOR problem discovered). Everything is quick and easy. Not to say no due diligence is done but it just makes things very easy when cash is involved.
