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.”
Click here to read the full story on Realtor.com.
