It is a bit counter-intuitive that in a period of extremely low long term mortgage rates, savvy buyers of higher end properties are almost always paying cash.
If you buy a higher end home here, sellers expect you to pay cash. The main reason is that appraisals are running well below the market price on current sales. If you buy a house for $900k and it appraises for $775k (common), most lenders will loan 80% of $775k. So, instead of putting down $180k, 80% of $900k, a buyer with financing needs to put down $280k in addition to the mortgage loan of $620k.
Sellers have a low enough level of confidence that they often turn down more money to get a cash buyer.
Well heeled buyers, on the other hand, are often frustrated by such low appraisals and react by paying in cash.
In actuality, a $620k long term fixed rate mortgage loan at rates at unprecidented levels could actually be as good or better "investment" than the property itself.
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