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06-15-2014, 07:17 PM
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421 posts, read 798,112 times
Reputation: 435
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When I bought my home, I made an all cash offer. The process was so much easier. No bank involvement, no appraisal. Offer was accepted and we closed in two weeks.
When/IF I move, I am thinking I should sell my home first before making any offers. I could find a temporary place to stay, even if it's renting a motel and P.O. Box. Why don't more people sell their home first instead of making offers contingent on the sale of their home first?
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06-15-2014, 07:29 PM
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4,567 posts, read 10,090,304 times
Reputation: 6705
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Most people have families and are not single. Its hard to understand if you dont have a family.
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06-15-2014, 07:54 PM
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3,072 posts, read 4,990,855 times
Reputation: 6570
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Not to mention the stuff... I'm semi-doing this next month and I already can't stand the thought. I have two in diapers plus a dog, it would be easy if it was just me.
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06-15-2014, 08:08 PM
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Location: SoCal
14,530 posts, read 18,809,542 times
Reputation: 10529
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Quote:
Originally Posted by MerriMAC
When I bought my home, I made an all cash offer. The process was so much easier. No bank involvement, no appraisal. Offer was accepted and we closed in two weeks.
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11 days for me. I was living in a RV and my stuff was in storage. I threw in an extra $10K just as a preemptive strike against my competition to ensure there was no bidding war. It worked. It was worth $10K to me to get out of the trailer after 2 years of house hunting.
Cash IS king. Nothing beats cash except a significantly larger offer with a solid pre-qual and no contingencies. |
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06-15-2014, 09:54 PM
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Location: Prescott, AZ
174 posts, read 374,962 times
Reputation: 106
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Quote:
Originally Posted by MerriMAC
When I bought my home, I made an all cash offer. The process was so much easier. No bank involvement, no appraisal. Offer was accepted and we closed in two weeks.
When/IF I move, I am thinking I should sell my home first before making any offers. I could find a temporary place to stay, even if it's renting a motel and P.O. Box. Why don't more people sell their home first instead of making offers contingent on the sale of their home first?
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They truth is I don't think most buyers understand how WEAK a contingency offer really is. In the area I live, with the market how it is. Virtually no contingency offer is considered, unless you are buying a real estate agents personal home that is listed. I think the reason people do it is because they don't understand what their up against and the truth is with an accepted contingency there is no guarantee the home would sell.
Trent |
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06-15-2014, 10:10 PM
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2,734 posts, read 5,183,533 times
Reputation: 2304
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Because many people don't know how long it will take them to find a home they want, and they don't want the hassle/expense of moving twice. Where I live apts are extremely expensive and many restrict or forbid pets, so even for home sellers without kids, moving into a rental is a huge risk/pain.
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06-15-2014, 10:26 PM
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265 posts, read 381,202 times
Reputation: 532
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Quote:
Originally Posted by MerriMAC
When I bought my home, I made an all cash offer. The process was so much easier. No bank involvement, no appraisal. Offer was accepted and we closed in two weeks.
When/IF I move, I am thinking I should sell my home first before making any offers. I could find a temporary place to stay, even if it's renting a motel and P.O. Box. Why don't more people sell their home first instead of making offers contingent on the sale of their home first?
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That's assuming after you sell your house, you make enough to buy another house outright. Not very common in my experience unless it's older folks who've been in their house forever. |
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06-15-2014, 11:24 PM
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Location: Taipei
7,762 posts, read 9,304,645 times
Reputation: 4936
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Quote:
Originally Posted by MerriMAC
When I bought my home, I made an all cash offer. The process was so much easier. No bank involvement, no appraisal. Offer was accepted and we closed in two weeks.
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Quote:
Originally Posted by MerriMAC
Why don't more people sell their home first instead of making offers contingent on the sale of their home first?
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These are two different things?!  I think both of those sentiments are generally correct...but they aren't related. A person selling their home first has little to do with being able to make an all-cash offer on the next home. Unless they're moving to a much cheaper market, downsizing to a much cheaper property, or they've paid off their mortgage...which aren't terribly common situations. |
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06-16-2014, 07:51 AM
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824 posts, read 1,423,049 times
Reputation: 1097
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I, as a seller, would never accept an offer contingent on the buyer selling their own house. It might seem tempting in a slow market when it's the only offer after months, but then I imagine the buyer would be taking just as long to sell... perhaps accepting a home sale contingency from their buyer... and so on.
But projectmaximus has it right. How many people these days are making enough from their sale to pay cash on another house? Most people who financed a house anytime in the last 15 years will probably not be getting that much back, unless they put down a big down payment to begin with, made double payments on the mortgage, or live in a super-hot market. Lots of houses sold years before the market peaked are still not worth their original sale price. After commission and taxes are paid, we're looking at a check of about 11% of the new sale price. Not enough to buy anything, barely enough for a small down payment on a new house in the same price range. And we're in a much better position than many people.
But yes, we're selling first, not because "cash is king," but because we're in a position to do so and it makes everything much less stressful, and allows us to submit cleaner offers when we buy again.
We will be renting, and it's expensive, as someone else said it can be hard to accommodate pets, and there just aren't many good rental options in my area. I can't imagine having to find rental housing for a whole family. Prices on rental houses in my area are insane compared to what you'd pay monthly if you bought it today.
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06-16-2014, 07:53 AM
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27,027 posts, read 16,522,648 times
Reputation: 29481
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Quote:
Originally Posted by projectmaximus
These are two different things?! I think both of those sentiments are generally correct...but they aren't related. A person selling their home first has little to do with being able to make an all-cash offer on the next home. Unless they're moving to a much cheaper market, downsizing to a much cheaper property, or they've paid off their mortgage...which aren't terribly common situations. |
I think this is the most usual case. Most people buying homes are only trading one mortgage for another. |
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