BY BRAD BECKETT ON SEPTEMBER 21, 2018
We all know that when it comes to making purchases, cash is king. However, when it comes to buying homes, more often than not, there is a loan involved. A recent article in the Wall Street Journal (reposted on Realtor.com) says that in the city of Detroit the vast majority of buyers are paying in cash – even with rising home prices. In the first six months of 2018, 87% of all single-family home & condominium buyers paid cash compared with 28% paying cash nationwide. That being said, the median price of a home in the Detroit was just just over $32k. But also:
“People looking to buy those renovated homes—often affluent young professionals or emptynesters—may also face challenges in getting a mortgage because those properties are difficult to appraise. Lenders have trouble determining the value of a newly renovated home in a neighborhood otherwise filled with distressed properties because there are few comparable sales to benchmark against.”