Sunday, July 13, 2008

Cash Offers

Ever hear the expression, "Cash is king"? People like cash. I like cash. I can spend it right away.

But when it comes to buying a house, cash isn't always king. Often, terms overshadow the cash. Often the response from the seller may be, "I don't care... I get cash at the closing, and I am willing to wait a little longer, especially if it means more money."

Here's the thing... the best offer you could give a seller is all cash, no contingencies, close right away. An offer with a mortgage of any kind can't compete with that. Now, your Realtor, and likely your lawyer, will get a little nervous if you propose an all cash, no contingency offer. Why? Well, first you should have a structural inspection done (yes, even if you are a contractor who "knows houses"), and you certainly should do a title search to make certain the seller is actually entitled to sell the home and is the owner of record!

But, if you feel that you want to make a cash offer , go for it! Just keep your feet on the ground. If there are no other offers on the property you can probably start a little lower than asking price, but I have a question here. Don't you too?


Why are there no other offers on this property? If it's such a a good deal why is no one else interested? How long has it been on the market? How long ago did these people buy it? Why are they selling? Have they had any offers? If so why did they not go through? Did they fail the structural? Did the bank get an unfavorable appraisal?

So, go ahead with cash, but don't be reckless! And if you do buy the property on a cash offer... try to get your inspections and searches done. then, maybe after a bit you can go get a mortgage on the place and buy another!

Hey.... Are you trying to buy a house in the Capital Region? I can help you, you know. Been doing it since 1982! Send me an email! I'll get you started!

See ya!


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