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Old 02-11-2013, 01:50 PM
159 posts, read 247,635 times
Reputation: 161
Default Are there any areas you can purchase a home without all-cash?

Been slowly checking out the real estate market here in the Bay Area and I've been shocked, to say the least. The prices aren't even the most shocking thing, it's that the only people winning bids seem to be those that are going cash-only.

I see this from 300k 1br condos to 1 million dollar SFHs, from SF down to San Jose. Even in the East Bay.

Is this the case for the Bay Area all around? Is there anywhere that's relatively safe with decent schools where the housing market is more "normal" - you can purchase a home with a normal mortgage?
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Old 02-11-2013, 01:51 PM
Location: SF Bay Area
8,660 posts, read 5,413,122 times
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Old 02-11-2013, 06:42 PM
Location: Upper East, NY
1,144 posts, read 1,311,264 times
Reputation: 522
Just move further away (far further) from the job epicenter PaloAlto, MtView, Sunnyvale and you won't compete with stock option sellers/foreigners.
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Old 02-13-2013, 09:18 AM
Location: SF Bay Area, CA
5,074 posts, read 4,226,767 times
Reputation: 3433
You just have to move fast, once you find the place you want. Be prepared to offer above asking, if the area is in high demand.

We bought our homes using a large down payment (40%) and made an offer usually within a week of the property hitting the market.
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Old 02-20-2013, 10:22 AM
488 posts, read 573,124 times
Reputation: 256
It is possible, but you do have to be ready to move fast. It's crazy we're choosing homes with less of a look than you would spend buying a car or a washing machine!!

We were where you were, not that long ago. It may sound corny, but when the right home comes along it will just come together. We were lucky in that we got to take a second look and didn't get into a bidding war.

I do think the more "difficult" your situation, the harder if you do have a multiple offer come along. For example if I was selling a home and many offers came in, I would likely not pick those with more stringent inspection rules and agencies that you know will take longer. But I think with a conventional loan it's totally possible.

I do remember being so disappointed that a house I loved on redfin was sold before I could even look at it. They must have walked in with all cash. I mean it literally closed in a week!
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Old 02-21-2013, 12:34 AM
Location: Pleasanton Ca
830 posts, read 1,194,346 times
Reputation: 565
Anyone with a lick of sense or has a realtor is going to know how hot the market is. Even if you get there fast it's a good bet you will not get it. If I'm selling I'm going to wait a few weeks and more than likely a higher and all cash offer will come in. Even with high prices in the area, it's amazing how many offers are cash.
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Old 02-21-2013, 11:53 AM
347 posts, read 304,703 times
Reputation: 297
Cash is king. Even if your offer is the same as the cash offer or possible a little higher the seller will usually accept the cash offer over yours. With an all cash offer they seller doesn't have to worry about an inspection or a low appraisal killing the deal like with a financed offer.
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Old 02-21-2013, 04:11 PM
159 posts, read 191,939 times
Reputation: 111
Its literally a sellers market now. Its been a while now since prices hit rock bottom, now with high rents and historical low interest rates and improving job market/economy, people who were on the fence or werent looking are jumping in. In my honest opinion the best time to buy wouldve been when foreclosures/REO were at their highest peak, despite interest rates not being as low as they are now. Thats when I jumped in, granted there was still some multiple offers, just not as much as now. A hell of alot more choices too. I recently did a refi at todays rates. I feel very fortunate to buy when I did.
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Old 02-21-2013, 09:11 PM
Location: Upper East, NY
1,144 posts, read 1,311,264 times
Reputation: 522
Why don't sellers (those who aren't in a hurry) demand nonrefundable deposits for those who want financing?
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Old 02-21-2013, 10:18 PM
Location: Silicon Valley
2,137 posts, read 1,320,279 times
Reputation: 3374
Yes, it's possible, but it's a very stressful experience. It took me about 6 months and more offers than I can count; eventually I won against the all cash deals & bidding wars.

Make your offer as clean as you possibly can and be prepared to waive some contingencies or otherwise modify/fast track them. I wasn't cool with waiving the appraisal contingency (many sellers asked in a counter), but I did finally give a 1 month rent back, free. Hated to do it, but it helped.
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