All Cash Home Purchases On The Increase: Get Ready for Inflation

Do the rich know something we don’t know? Well, I want in on their secret. Because it’s almost downright eerie how many¬† cash buyers are out there. Generally, they are commanding a 10 to 20% discount when they flash cash at sellers. Why? Because the seller knows the sale is a slam-dunk — no need to worry about appraisals matching up, no need to worry about qualifying by a bank, no last minute glitches. Cash is king, and it is accounting for 31% of the sales in California. On a recent piece I did for AOL, I found that cash transactions just may be a good sign of a market bottoming out: in all the distressed markets, cash purchases are on the upswing.

So you think, why would someone buy a home with cash? (Remember the old phrase, use someone else s’ money?) Rob Hahn is a highly respected real estate consultant I have met through my Inman connections, who, by the way, needs to be welcomed to Texas: he just relocated to Houston. I really like what he has to say: the rich are buying with cash because they know something we don’t know: inflation is about to hit.