[quote=XBoxBoy][quote=deadzone]I would be more interested in knowing what % of cash buyers are living in the house as their primary residence. Probably can’t know that for sure from available data. But I would assume that most cash buyers are NOT purchasing a primary residence with all cash. I’m not saying it doesn’t happen, but doesn’t really make sense with mortgage rates so low in recent years. [/quote]
I would disagree, and I’ll use myself as an example. For a number of years my wife and I have been looking for a bigger house. We have been steadily saving money and due to stock market gains have amassed more than we would have thought possible. In early January a house we really liked came on the market in La Jolla. It was virtually all the things we had been looking for. When the house went on the market, the listing agent told everyone that cash offers would be preferred. So we made a full price cash offer, with an escalator clause. (30 day escrow) There were several competing offers and for reason I won’t get into here, while not the top price (but close) we were selected as the purchasers provided we would switch to a 15 day escrow. So, we agreed. Before January was out, we’d sold a shocking amount of stock and paid a ton of money for our dream house.
But, despite this being our dream house, that’s not to say it didn’t need some work and updates. So… we are in the process of getting plans for the remodel we will do, and it will easily be a year before we move in. So, looking at tax records, you will see that our primary address is the house we are currently living in, but will probably sell in a year or so when we move to the new house.
All of this is a simple example of how people buying houses for their primary residence with all cash exist out here. We aren’t investors, despite owning two houses, nor are we that unusual. I’ve know several other people in the area who have done the exact same thing we are doing.[/quote]
I would have figured that out. Someone buying a $1M plus home for cash in the area they live fro a long time and own another is not likely an investor. Thats not the profile of someone buying a house to rent or flip.
