Yes, it is UNbelievable- CASH OFFERS on million dollar homes. Recently, I closed a home in Palo Alto which was priced at $1,495,000 which received 5 offers. There were 3 which were ALL CASH and all the offers were significantly over the asking price. The final price ended up being just over 20% of the asking price at $1,800,000. That’s $305,000 over the asking price.
It’s not UNusual to see this kind of bidding happening with CASH buyers who are bring funds from many directions. Could be a local buyer, could be an out area buyer or could be from overseas. There are also “Cash Like” offers with large downpayments of 50% or more which means that obtaining a loan to value of 50% or less would be an easy prospect.
This trend appears to be continuing through this Spring of 2013. We will just have to wait and see how long this might continue. UNbelieveable!