Where did all these cash buyers come from?

Where did all these cash buyers come from?

If it seems like buyers are competing with more cash offers than in the past, you’d be correct. In my 10 years, coming across a cash offer was like finding the golden ticket. It was very rare. Nowadays, cash offers are regularly mixed in with financed offers.

Since it’s unlikely that throngs of young buyers magically obtained half mil or million overnight, what the heck happened? Recently, some buyers have leveraged their parents’ equity by cashing out big sums for a down payment or pulling out enough to pay for a home in cash.

The reason for this is simple. Home sellers love a cash offer that can close in 7 days. With larger pools of cash investors on the prowl, buyers are forced to compete in kind with their bag of cash in tow.

The benefits of are obvious. Mom and dad act as your bank and you get a house. As long as you’re responsible, employed and deemed creditworthy by a real bank, parents shouldn’t have any qualms about tapping their line of credit. If you’re none of these things, don’t put your parent’s home and retirement in jeopardy–even if they insist, because they’ll end up living with you.

Thinking about asking your parents for the biggest favor ever? Or, is it best to keep money and family separate?

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