tag:blogger.com,1999:blog-8869297809695985484.post2243967954269062085..comments2023-10-31T00:33:59.215-07:00Comments on Home Spun: Cash Buyers Flood the East Bay Luxury Home MarketBerkhills Bloggerhttp://www.blogger.com/profile/18212405818520800852noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-8869297809695985484.post-3109048486517308812013-10-14T00:42:51.813-07:002013-10-14T00:42:51.813-07:00Amazing Post by cash Home Buyers. I want to sell ...Amazing Post by cash Home Buyers. I want to sell My House fast London Sell Your House UK helped me out Thanks...SellhouseFasthttps://www.blogger.com/profile/16654018995050448041noreply@blogger.comtag:blogger.com,1999:blog-8869297809695985484.post-81991940922860122582009-11-24T14:02:48.977-08:002009-11-24T14:02:48.977-08:00Just curious to know if foreign investors were amo...Just curious to know if foreign investors were among the "all cash" buyers.RosDnoreply@blogger.comtag:blogger.com,1999:blog-8869297809695985484.post-67468436675458202932009-11-23T15:56:53.752-08:002009-11-23T15:56:53.752-08:00Thanks all for your comments. To Debtpocalypse, I...Thanks all for your comments. To Debtpocalypse, I appreciate you contribution to the conversation and yes this is a valid side of the argument. <br /><br />From the experience within my office and my conversations directly with listing agents who were involved in the "all cash" transactions, two realities are taking place.<br /><br />1.) In some cases, sellers truly benefit from an all cash offer and may even receive a higher price than would result from an offer limited by a lender driven appraisal. See HVCC regulations. <br /><br />Conversely, sellers may be self-limiting based on their understanding of the current lending climate. Your comment begs the question whether or not the cash transactions reflect a true equilibrium of value derived from a "transaction price between willing buyer & willing seller”. I’m not sure I have a definitive answer, but I do believe that post sub-prime media is providing an influential sway. In my experience sellers are sometimes accepting a steeply discounted price because of fears based on the volatile financial market. Sometimes these fears have nothing to due with the willing and able buyers who are bidding on their home. Their buyer may be an exceptional “A-rated” pre-approved buyer with a substantial down payment without an appraisal concern. But, because of market fears, the seller becomes “unwilling” to consider them. Sure, cash is always preferable, but in the past, buyer’s who needed and wanted to finance the sale could off-set the all-cash preference by offering the seller a financial incentive-- a higher price. When sellers walk away from large amounts of money from well-qualified buyers, this discount begins to feel “artificial.”Berkhills Bloggerhttps://www.blogger.com/profile/18212405818520800852noreply@blogger.comtag:blogger.com,1999:blog-8869297809695985484.post-42577683159182534502009-11-23T14:46:45.033-08:002009-11-23T14:46:45.033-08:00Useful analysis and information. Thanks. I found ...Useful analysis and information. Thanks. I found this specific claim peculiar, however:<br /><br />"Many believe cash is keeping neighborhood values artificially low."<br /><br />"Artificially low"? How do they figure?<br /><br />In the absence of cash buyers, presumably some of these houses would not have transacted at the price they did, forcing sellers to reduce price into a range where credit-worthy buyers qualify. That would result in lower prices. <br /><br />I can see nothing "artificial" about a transaction price between willing buyer & willing seller, where sellers' preferences are dominated by the reliability of the transaction proceeding. <br /><br />Cash is real, with the buyer holding the note at the end of the transaction. And a cash-price is the most "unartificial" one available, since there is no time-value-of-money or credit risk considerations with cash.<br /><br />The more levered (i.e., credit-dependent) the transaction, the more "artificial," since a lender holds the note, not the buyer. <br /><br />Where lending standards collapse and credit fraud pervasive, the "artificiality" of transaction price is maximized.Debtpocalypsehttps://www.blogger.com/profile/18430029491532773574noreply@blogger.comtag:blogger.com,1999:blog-8869297809695985484.post-39997426482097349412009-11-23T10:35:04.813-08:002009-11-23T10:35:04.813-08:00This is a great news after a long time from real e...This is a great news after a long time from real estate sector. All the reports are too good and especially one thing really surprised me. 31% cash buyers is just amazing and that too at the time of recession.CD Rateshttp://www.bestcdratestoday.com/noreply@blogger.comtag:blogger.com,1999:blog-8869297809695985484.post-17565085087081408412009-11-13T11:50:12.997-08:002009-11-13T11:50:12.997-08:00Very nicely done - thank youVery nicely done - thank youIra & Carol Serkeshttps://www.blogger.com/profile/15113323228528974369noreply@blogger.comtag:blogger.com,1999:blog-8869297809695985484.post-43662331396577065752009-11-13T11:48:33.041-08:002009-11-13T11:48:33.041-08:00Very nicely done - thank you!Very nicely done - thank you!Ira & Carol Serkeshttps://www.blogger.com/profile/15113323228528974369noreply@blogger.com