Follow-Up to Selling to the Cartel for Cash

[Deleted]

I was doing some research the other day for an article I was writing for my client, and discovered it is actually illegal to sell property in CA for actual cash. It has to be a bank transfer or check. 

Ironically, in an area with essentially one group of buyers, though we hear rumors of multiple factions fighting for property and bidding up property, the prices are still rising! 

They recently sold the 3 lots across the street from me. These were $1500 parcels just 5-8 years ago. They sold for $25K-30K each!

There are 2 homes in my subdivision listed for sale and they are both priced higher than my contracted price last go around and both are only 1/2 the land and smaller homes with no big shop/garage or extra small house like mine has. 

Since my house was under contract, I put on a new roof, had my septic pumped and cleaned, and am in the process of painting the entire interior. I have new water heater and washing machine, as well as my surface well equipment.

In a month, the local power company is putting new windows in my whole house through a program they have. I have been 100% honest I am selling in the spring and they don't care. They said it will still be on the grid, and they are happy to do the upgraded windows for all-electric heat properties because it saves power.

I talked to a local realtor who has the other 2 properties listed and she agreed it's not the right time of year if I want to maximize my sales price and that spring is ideal. She also said the value of my house has increased since the last time it was in escrow and all the upgrades will push that even higher. It's not unreasonable I will see a price near or above $200K. 

Glad to have Prop 13 protecting my taxes, since it's assessed at $63K. 

[finnime]

Great news on increased value. Interesting that cash sales are prohibited. Guess the buyer in question would need to get a cashier's check.

[Deleted]

I can understand the prohibition on cash sales.  It is to prevent money laundering.  Usually, when people say that it is a cash offer, they simply mean that there is no financing involved.  No one except maybe your potential buyers shows up with $200k worth of 20s or even 100s.  And what would you do with it if they did?  The bank has to report cash transactions over a certain value.  

Your buyers must know this.  Definitely the lawyer or closing agent would.

[NoNamePerson]

Jul 31, 2019 13:21:46 GMT -5 @bamafan1954 said:

I can understand the prohibition on cash sales.  It is to prevent money laundering.  Usually, when people say that it is a cash offer, they simply mean that there is no financing involved.  No one except maybe your potential buyers shows up with $200k worth of 20s or even 100s.  And what would you do with it if they did?  The bank has to report cash transactions over a certain value.  

Your buyers must know this.  Definitely the lawyer or closing agent would.

Probably won't make it out of neighborhood and become one with the land. Ok my evil twin is on the keyboard this afternoon. 

[raeoflyte]

Title companies aren't going to accept cashiers checks over a certain dollar figure either, and it's not a very large figure anymore.  They'll require a wire transfer.  

[CCL]

My title company would not accept any amount of cash. Wire transfer only.