Home Prices

I think (and I could very well be wrong) that sellers prefer buyers who have a large cash downpayment because it shows that they are serious buyers and there is a smaller chance that the financing will fall through during escrow.

My cousin had to do that as well...write a letter to the sellers to convince them that she was the perfect buyer for their condo. Crazy! One of DH's fellow residents bought a house in Long Beach, CA a year ago. They had to put $135k down! It sounds like a lot, but it was only 20%. I couldn't imagine having that much cash on hand...especially on a resident's salary!!

Kinda on topic.

The real estate agent who showed us around Madison when we visited said lot of PARENTS are buying condos for their undergraduate kids, letting it earn some equity, and selling it at a profit when the kid graduates.

Trippy.

[SuzySunshine]

I had a friend who's parents did that for them in college. They bought her a small house, she got a couple roommates and the parents sold it when she graduated. It was a great investment.

Just wondering, why do the sellers care if they get 20% down in cash from the buyer if the bank is going to write them a check on closing day?

That's the same question I asked, but basically EDWife got it right. They're that picky b/c they CAN be ... people will pay so much for such a tiny place, and if you're in a remotely decent area, you can really have a line of people offering over the asking price for it. One of the places my cousin DIDN'T get she lost to someone who was paying CASH for the whole thing (again 500K+).

It's a whole different world out there in the land of fruits and nuts.

[Sheherezade]

I had some friends that got so frustrated with being out bid on houses that they decided to advertise themselves. The mom --a very creative type -- actually made up flyers with pictures and info about their family. She was after older people with homes that wanted a young family to live in them and love them. (That was her advertising angle...) Anyway, she ended up getting a house for a very good price from an older couple that weren't even selling there house yet. The house was a gorgeous old Victorian with all original features restored in a good neighborhood. I think it only took a month or so. Previously, my friend had bid on 8 houses over the course of a year and was effectively being forced out of the market. (I even think she put that in the flyer!) It is a trippy world these days in real estate....

[KCwife]

"She was after older people with homes that wanted a young family to live in them and love them. "

What an awesome idea, I will have to remember this!