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Old 01-30-2018, 11:40 AM
 
Location: ☀️ SWFL ⛱ 🌴
2,099 posts, read 1,421,538 times
Reputation: 7492

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Quote:
Originally Posted by howard555 View Post
We were once paid for a car with a certified check. It bounced when we thought it was as good as cash.

This cash buyer emphasizes the savings of the agent commission of 6%. Since they could offer 6% lower than the current ask, it makes the 6% non material. This buyer has other reasons for paying cash. What they are is not known. Both have good paying jobs and "cash" on hand for a 20% down payment. And still they avoid a mortgage.

Many people do not want a mortgage for a myriad of legitimate reasons. Go over to the personal finance or retirement forums where getting a mortgage or paying cash comes up for discussion quite often. Many people want to own a house outright and sleep better with no payments, while others want a mortgage that doesn’t tie up their investment cash.

You are fortunate to have a cash offer which will likely have a quicker closing time with a better chance of actually closing. As a seller you are in a better position than the buyer who needs to put in more effort to make sure your house is worth the investment of their cash.

We recently sold our house using a realtor/real estate lawyer and had two cash buyers in a bidding war, going over our listing price. We had two other offers that required mortgages and we did not even consider those. Taking a bank or mortgage lender out of the equation streamlines the process. We considered ourselves quite fortunate to have a cash buyer.

Our buyers preferred using a certified check, with the closing right before Christmas. Our credit union had told us they wouldn’t know the clearance time for the check until they saw it. One type takes two days and the other type takes fives days to clear. We stood firm for a wire transfer. While I realize wire transfers can have issues, a certified check seems archaic with clearing times. A closing right before a holiday weekend added on three more days to the clearing time, which was unacceptable to us.

Last edited by jean_ji; 01-30-2018 at 12:59 PM..
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Old 01-31-2018, 10:52 AM
 
Location: North Idaho
20,999 posts, read 25,750,723 times
Reputation: 39380
OP, it costs money to get a mortgage. If you take out a mortgage you pay appraisal, origination fees, points, and assorted other fees. It can easily cost the buyer an extra $5,000 to obtain a mortgage. Plus, you almost always have to make the first mortgage payment (sometimes 2 full mortgage payments) at the time of closing.

Plus the hassle of the endless documents the bank wants. All through the escrow, the bank will be asking for additional documents and they always want them right now! so getting a mortgage involves several emergency dashes to FedEx to pay high over night fees.

If someone can pay all cash, it is just much easier for everyone involved, even the escrow company. The documents pile for a cash purchase is about a third as tall as the massive pile of documents to sign when there is a mortgage.
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Old 01-31-2018, 12:49 PM
 
6,359 posts, read 7,324,210 times
Reputation: 10807
Quote:
Originally Posted by oregonwoodsmoke View Post
OP, it costs money to get a mortgage. If you take out a mortgage you pay appraisal, origination fees, points, and assorted other fees. It can easily cost the buyer an extra $5,000 to obtain a mortgage. Plus, you almost always have to make the first mortgage payment (sometimes 2 full mortgage payments) at the time of closing.

Plus the hassle of the endless documents the bank wants. All through the escrow, the bank will be asking for additional documents and they always want them right now! so getting a mortgage involves several emergency dashes to FedEx to pay high over night fees.

If someone can pay all cash, it is just much easier for everyone involved, even the escrow company. The documents pile for a cash purchase is about a third as tall as the massive pile of documents to sign when there is a mortgage.
When I do a cash closing I can usually be out the door in 10 minutes. Fifteen if we sit around and chit-chat.
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Old 01-31-2018, 01:07 PM
 
570 posts, read 221,565 times
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We were in a multiple offer situation with a couple cash buyers and others with mortgages. The cash offers were less and we did not need a quick closing because we had not yet found another home to purchase. So, I think the attractiveness of cash offer depends on the situation.

You can save money by not hiring a real estate agent, however, you will usually pay higher attorney fees because you will be paying for the standard closing process plus additional at an hourly rate to cover drafting and reviewing the sales contract. You can get an estimate on how much this might cost to see how it compares with having a seller's agent do that work.

If you are in a strong market, you might be able to have your attorney include an appraisal contingency in your contract where the buyer pays whether not the property appraises. We did that with the townhome we sold and the buyer was fine with it since, if it did not appraise, they had the cash in hand to pay the difference between the appraised value (which would be paid with mortgage) and the purchase price. Probably not every buyer will sign something like that though. For us it worked because we had so much interest.

Shop around for realtors. You might be able to find a low cost seller's agent. (Ours only charged 1% so plus the buyer's agent we only paid 3.4% total commission)
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Old 02-01-2018, 01:05 PM
 
Location: Raleigh
6,964 posts, read 5,187,171 times
Reputation: 9395
Quote:
Originally Posted by howard555 View Post
We were once paid for a car with a certified check. It bounced when we thought it was as good as cash.
They can be fraudulent. But, it wasn't a big deal when I bought my house; i paid my down payment with a cashiers check.
Quote:
Originally Posted by howard555 View Post
This cash buyer emphasizes the savings of the agent commission of 6%. Since they could offer 6% lower than the current ask, it makes the 6% non material. This buyer has other reasons for paying cash. What they are is not known. Both have good paying jobs and "cash" on hand for a 20% down payment. And still they avoid a mortgage.
Why is it so suspicious for you that they don't want to borrow money? This really isn't all that uncommon. Lots of people don't want to borrow money and want to avoid debt. For a lot of (mostly mundane) reasons. They don't want to hassle with underwriting, they don't like debt, they have a religious belief against borrowing money, they want to insure a quicker close...

Quote:
Originally Posted by howard555 View Post
Isn't there a new law that if a person tries to withdraw $10,000 or more it is a red flag for the U.S. Government and they would have to withdraw larger sums over a period of days?
--------------
Articles explain how this is the future. No one will have cash in their pocket, everything is on a card, the government controls your funds.
Withdraw? They're more suspicious of deposits.

That law has got to be 20 years old or more, but in any case, it refers to actual greenbacks. Like if he walks in with a dufflebag of $100 bills. And the banks don't stop the transaction anyway, and if instead of withdrawing $38000 at once, you withraw $9,500 four times, its more of a red flag than the $38K on its own.

In any case, how do you think people pay for their down payment on a mortgage? How is it any different? The lenders refer to it as "cash to close," meaning you need to make sure you have your ducks in a row as far as money in the bank to close on the house.

If a Doctor, making $300K a year, wires $200K from his bank account or brokerage account to pay for a house it isn't goign to garner any attention.
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Old 02-06-2018, 02:13 PM
 
878 posts, read 781,949 times
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I fail to understand why the OP fails to understand what's been explained clearly by many here-- you seem leery of these (seemingly well qualified) buyers when most sellers would be OVERJOYED to have an all cash offer.

Yes, a successful closing (whether it's cash or financing) ends with cash in hand for the seller-- the point is that a cash offer is far less complicated, faster, and with fewer opportunities for failure. Either way, as a seller, I don't care, as long as I get MY CASH at the end of the day (though, again, I prefer a cash offer for the above listed reasons-- namely, a higher likelihood that things go right and quickly so).

Some people, even those with the cash in hand to buy outright, opt to take out a mortgage for various reasons-- many opt to pay cash and have no payment. Either way, as a seller, I don't care, as long as I get MY CASH at the end of the day.

As you've been advised, OP, ensure that you get someone who can advise you through this process to ensure that things run smoothly (and ensure that you're getting a fair price, too-- there are a number of ways to do so).

Best of luck.
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Old 02-06-2018, 05:54 PM
 
10,148 posts, read 13,838,845 times
Reputation: 4566
Well qualified buyers?
Not born here (and maybe not even legal) and despite so called good job they say they have, they still pay high rent.

This rental house was ready to be rented and here comes a cash buyer as described above. Their first comment was it will save the commissions. The seller pays the 6% commission.
Our first thought was whether they were trying to slide around a legal contract.

So they offered 30% lower than what we would have netted had it been listed at an asking price, offered a 10% discount along the way, and seller pays the 6%.

When the right person who is willing to sit down in a lawyers office and do it the right way comes along and they have cash and willing to pay what we'd net if it was through a mortgage we'll listen. If we desire a seller's agent as well they do not need to be concerned about the commission.
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Old 02-06-2018, 06:57 PM
 
Location: Columbia SC
7,961 posts, read 6,710,786 times
Reputation: 10706
What cash meant to me as both a seller and buyer is no 3rd party (mortgage companies, banks, etc.) were going to stick their fingers in and delay/screw up the sale.

Cash can matter but be legally sure (lawyer up) it is a "clean deal" unless they open up a briefcase with enough money inside it and all you have to do is leave the house.....LOL
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Old 02-06-2018, 07:08 PM
 
917 posts, read 402,858 times
Reputation: 2270
Quote:
Originally Posted by howard555 View Post
Well qualified buyers?
Not born here (and maybe not even legal) and despite so called good job they say they have, they still pay high rent.

This rental house was ready to be rented and here comes a cash buyer as described above. Their first comment was it will save the commissions. The seller pays the 6% commission.
Our first thought was whether they were trying to slide around a legal contract.

So they offered 30% lower than what we would have netted had it been listed at an asking price, offered a 10% discount along the way, and seller pays the 6%.

When the right person who is willing to sit down in a lawyers office and do it the right way comes along and they have cash and willing to pay what we'd net if it was through a mortgage we'll listen. If we desire a seller's agent as well they do not need to be concerned about the commission.
I’m not sure I understand. It sounds like the issue was that the cash offer was lower than what you wanted, not that it was cash?

An offer too low is a separate issue.

If they’re shady? Again, what does it matter to you if the funds come through? I can’t quite figure out what is bugging you, you keep listing different reasons and conflating them together. Can you clarify so we can understand?
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Old 02-06-2018, 07:50 PM
 
Location: Saint John, IN
10,638 posts, read 3,314,105 times
Reputation: 12748
Quote:
Originally Posted by howard555 View Post
Well qualified buyers?
Not born here (and maybe not even legal) and despite so called good job they say they have, they still pay high rent.

This rental house was ready to be rented and here comes a cash buyer as described above. Their first comment was it will save the commissions. The seller pays the 6% commission.
Our first thought was whether they were trying to slide around a legal contract.

So they offered 30% lower than what we would have netted had it been listed at an asking price, offered a 10% discount along the way, and seller pays the 6%.

When the right person who is willing to sit down in a lawyers office and do it the right way comes along and they have cash and willing to pay what we'd net if it was through a mortgage we'll listen. If we desire a seller's agent as well they do not need to be concerned about the commission.


OP, everything you're stating is nonsense!!

Not born here? What does that have to do with anything? Many foreigners by homes here, doesn't mean they are shady! Many people also have good jobs and income, but pay high rent because they want an upscale place to live until they decide to buy. None of that is really any of your concern! Your only concern is that they have the money to buy, can settle on a price and funds are wired at closing or brought in a form of a cashiers check that the lawyers office will verify to make sure isn't fake. The only thing that is different when dealing with an all cash buyer is that you don't have to worry about the buyers financing falling through because there is NO loan!! Best possible sale is an ALL CASH BUYER!!
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