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Biggest note is still a $100 bill, right? Who is going to count and verify that many bills?
Not True. There are still 160,000 One Thousand Dollar Bills in Circulation.
There are still a few hundred $5,000 and $10,000 bills still in circulation, but most are in private collections and in museums.
All these large bills, are still legal tender at face value, but will sell at a premium price due to their rarity.
I know of one instance a wealthy man had a real estate property for sale about 40 years ago. He had several offers, and the lowest offer was amount of the listing price. That one had a $1,000 bill as a deposit. He accepted Taking that bill as a deposit and to be his at closing, meant more to him than the $20,000 plus money if he took the highest price offer. The $1,000 bill could not be found at banks, and the Federal Reserve was not putting any into circulation.
He accepted that offer, as he had never seen a $1,000 bill and wanted to frame it and hang on the wall in his office. The listing agent was a fellow Realtor and friend. He said when he want to present the offers had them sorted by the amount offered low to high, he had placed the one with the $1,000 bill in a clear envelope to protect it on top of the stack of 5 offers, and that is as far as the seller looked at offers. He was more interested in owning that deposit, than he was in getting the top dollar for his property.
A lot of people pay cash for a home, and own a home free and clear of mortgages.
I know as our home is a 3,700 sq. ft. 4 level contemporary home on 5 acres across the county road that separates the best housing area of the city from the county. We own it free and clear. My wife and I are Retired investment real estate brokers, in the business from 1972 until we retired. Our taxes are low in this area, so our total housing costs per month including taxes, insurance, upkeep and maintenance, and a housekeeper coming in 3 days a week, and her teen age son who takes care of the 1 acre of landscaped yard on Saturdays in summer, are less than we could rent a decent apartment or home.
One reason we keep it at our ages 86 and 88, is the home is increasing in value by 10% to 12% per year these last few years, and we cannot get that type of return from banks, and bonds. We are too old trying to play the stock market. We have fixed it up for elderly, with 3 chair lifts taking us from one level to another. This is a 4 level home with the lowest area a garden level family room, with a walk out small patio. This is not a 4 story home including basement as many think it would be for that kind of sq. footage, and has a large footprint. 25 foot soaring window wall in Living Room.
In our area, the value did not crash in the last recession, and due to a shortage of available homes, the home will continue to increase in value for the foreseeable future. We have enough cash available, we could pay cash for a typical home at median home prices in addition to our home if we wanted to.
I am using us as an example.
The offer is for an all cash purchase of a home, near their own home for parents. There is absolutely nothing wrong with that. Cash offers are very common in this situation. The young buy homes using credit, and the more mature pay cash in a large percentage of sales.
Quit worrying about someone having cash to buy a home. If he offer is acceptable for price, take the offer. Depending on the state you are in, you can have the closing done by an attorney, or you can have a title and escrow company handle the transaction in others. The closing will probably not be done by check, but will be wire transferred funds between buyers bank and your bank today. And a few minutes later, give the new owners the keys and wish them well. I have closed some cash sales, in less than 24 hours, taking a few hours to get the title insurance commitment, and papers prepared when I was in that business.
Just because you personally cannot afford to pay cash for your home, does not mean a lot of other people cannot afford to pay cash for a home. I was happy when my wife and I no longer needed to use credit. We have bought nothing on credit for 30 years. Have no credit cards, but a visa cash card, which does anything a credit card can do. Need a new car, buy for cash. If we need a new home, we would pay cash.
The way you are posting, it sounds like you are suspicious far beyond reason, if someone can pay cash for your home. You are acting like it has to be a bunch of crooks, or the money is illegally obtained, etc., etc., etc., if they want to pay cash for your home. Chalk it up for what it is. Someone has the money in the bank to pay cash, and are willing to spend it. They simply do not want or need to use credit to buy a home. Instead of worrying about why they are paying cash, if the offer is acceptable as to price, then sell---sell---sell.
Biggest note is still a $100 bill, right? Who is going to count and verify that many bills?
Presumably the Title and Escrow office or Attorney's office, depending on the state.
I've seen $30K in greenbacks brought in to purchase a car. The F&I officer called in another F&I officer to make sure there were two people in the room to avoid any allegations of shenanigans, and they proceeded to count it out, and sell the car.
And I'm sure that the family that owned the nail salon and bought the car got a little extra scrutiny come tax time.
Biggest note is still a $100 bill, right? Who is going to count and verify that many bills?
You do realize that your local bank keeps anywhere from $750k to $5million (maybe more depending on the bank volume) in the vault at all times and that cash is audited by hand every night. It's actually not really that hard to do.
You do realize that your local bank keeps anywhere from $750k to $5million (maybe more depending on the bank volume) in the vault at all times and that cash is audited by hand every night. It's actually not really that hard to do.
Interesting because once last year I stopped at my branch to withdraw $5000 in cash and they said they could do it this time, but that they didn't keep that much on hand usually and next time I had to call ahead. It sounded odd to me; does anyone who ever worked in a bank know the answer?
I've worked at a bank and there is typically well more than $5K on hand at any time in the vault.
The scenario that comes to mind that might result in something like this is paycheck day, with lots of cash going out the door. PLUS, someone at the bank could have underestimated the total out the door cash demand and didn't order enough cash that week to cover it.
Interesting because once last year I stopped at my branch to withdraw $5000 in cash and they said they could do it this time, but that they didn't keep that much on hand usually and next time I had to call ahead. It sounded odd to me; does anyone who ever worked in a bank know the answer?
I used to be a bank manager.
Every bank is different and holds a different volume of cash. Some banks limit the amount you can withdraw without prior notice. This is to insure they have enough before the next shipment from the Fed comes. Especially if they know a commercial account will be coming in for a large change order. At any rate, the limit is usually higher than $5k.
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