Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Real Estate Professionals
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 03-17-2008, 10:48 PM
 
Location: Dallas, TX
32 posts, read 46,277 times
Reputation: 11

Advertisements

NO it makes no difference price is the price, the only differenc it can make fact you can close faster w/o having to wait for lender approval and etc.

I am a Dallas real estate agent IF I were presented 2 offers on one of my listings one was all cash the other financing I would take the all cash for you could close faster IT SAVES MY SELLER extra money of faster close in approx. 10 days, than holding on waiting for a lender 30 day process.

Reply With Quote Quick reply to this message

 
Old 03-18-2008, 09:41 PM
 
Location: Prospect, KY
5,284 posts, read 19,994,603 times
Reputation: 6656
But Dallashomes - not everyone is buying a house in Dallas and regional real estate markets and practices can be very different from one another - what may be true for Dallas, may not be true for other areas (this is evidenced by some of the answers here on this post that disagree with you).
Reply With Quote Quick reply to this message
 
Old 03-18-2008, 10:29 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 38,073,112 times
Reputation: 2661
Quote:
Originally Posted by Cattknap View Post
But Dallashomes - not everyone is buying a house in Dallas and regional real estate markets and practices can be very different from one another - what may be true for Dallas, may not be true for other areas (this is evidenced by some of the answers here on this post that disagree with you).

Be careful.. much opinion very few facts.
Reply With Quote Quick reply to this message
 
Old 03-19-2008, 12:01 PM
 
Location: Columbia, SC
10,907 posts, read 21,863,511 times
Reputation: 10539
Quote:
Originally Posted by Cattknap View Post
But Dallashomes - not everyone is buying a house in Dallas and regional real estate markets and practices can be very different from one another - what may be true for Dallas, may not be true for other areas (this is evidenced by some of the answers here on this post that disagree with you).
Why did you ask the question if you had already made up your mind and were going to argue when someone had a different opinion or experience?
Reply With Quote Quick reply to this message
 
Old 03-22-2008, 08:30 AM
 
622 posts, read 3,107,777 times
Reputation: 305
Just from personal history... I put an offer in 1998 on a house for $190k. The realtor came back and said they have an "All cash offer of $185k" and refused our offer. We were preapproved or prequalified, forget which is the better one. We had at least 20% down. We actually had 50%+ down, but didn't want to put that much as a down payment.

So, in my case we were rejected even though we had an offer of $5000 more than the all cash offer.
Reply With Quote Quick reply to this message
 
Old 03-25-2008, 05:13 PM
 
Location: Albany, OR
540 posts, read 2,167,320 times
Reputation: 359
I've been off the board for a little while...just getting back. As I read through this thread a couple of things come to mind:
(1) Cash CAN generate a great discount with some sellers. With other sellers it just doesn't matter. The source of the money isn't important but the OTHER factors that come along generally are (i.e., a quick close, minimal/no contingencies, etc...) In general you are talking about a seller who is willing to trade time for money.
(2) For some people paying all CASH is the right financial move. For others it is NOT. There are some generational differences here in the way that people look at money and use it to build wealth. It depends on your goals of course, but one would have to consider whether this was the highest and best use of the capital and what the other opportunities available might be.
For example, taking a loan out allows you to use the capital to invest in OTHER ways that may well offer a more profitable return (especially in the current market conditions with low interest rates). If I can pay a mortgage of 5.75%, deduct a LARGE interest payment from my taxes AND make 6% or more on other investments...seems like a no-brainer to me. Again, I'm not suggesting that this is the right answer for everyone, but it might be worth an hour spent with a financial planner to explore.
So many people of retirement age make the ASSUMPTION that paying cash and having no payment is better for them financially. All I'm suggesting is that there are other options worth exploring.

Glad to be back. Hope everyone is having a great spring and looking forward to an excellent "rest of the year."

Dave
Reply With Quote Quick reply to this message
 
Old 07-23-2008, 09:46 PM
 
1 posts, read 2,422 times
Reputation: 10
Dave, I know for myself paying cash for my house was the best thing FOR ME. To me there is nothing better than knowing you own your home free and clear. To me the piece of mind of owning my own home far outweighs any tax benefits. Just my opinion of course . I know if you went to an investment advisor they would recommend your route and would tell me I'm wrong....to each his own.
Reply With Quote Quick reply to this message
 
Old 07-25-2008, 11:53 PM
 
92 posts, read 297,883 times
Reputation: 61
Quote:
Originally Posted by DavePautsch View Post
For example, taking a loan out allows you to use the capital to invest in OTHER ways that may well offer a more profitable return (especially in the current market conditions with low interest rates). If I can pay a mortgage of 5.75%, deduct a LARGE interest payment from my taxes AND make 6% or more on other investments...seems like a no-brainer to me. Again, I'm not suggesting that this is the right answer for everyone, but it might be worth an hour spent with a financial planner to explore.
So many people of retirement age make the ASSUMPTION that paying cash and having no payment is better for them financially. All I'm suggesting is that there are other options worth exploring.


Dave

So for every $100K I borrow about $6000 per year goes to interest. Now I get to save about $1500 a year on my taxes. In other words I spend $6000 to get $1500. Why would anybody do this?

Forget about using borrowed money for other investments. Everybody needs somewhere to live. So if you can live there for free without a monthly payment then do it. That should be your first financial priority in life. Now that you have a place to live, go out and make money on investments. Money that you get to keep every month instead of giving it to a bank. Now watch your your investments grow. Talk about a no-brainer.
Reply With Quote Quick reply to this message
 
Old 07-26-2008, 12:13 PM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 22,233,015 times
Reputation: 6469
Quote:
Originally Posted by deno088 View Post
So for every $100K I borrow about $6000 per year goes to interest. Now I get to save about $1500 a year on my taxes. In other words I spend $6000 to get $1500. Why would anybody do this?
Because spending 6K to get back 1.5K per year looks like a 25% return on investment to me.
Reply With Quote Quick reply to this message
 
Old 07-26-2008, 02:52 PM
 
Location: Barrington
63,919 posts, read 46,474,580 times
Reputation: 20674
I am aware of a few cash deals that turned into something else.

Cash buyers often times leave their money in the stock/bond market and I am aware of a few situations that come closing, the buyers had lost enough principal that they could not close on time, as expected.

Cash buyers need to take their cash out of the stock/bond market or have a sufficient reserve to cover potential losses.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Real Estate Professionals
Similar Threads

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top