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Old 08-25-2017, 01:08 PM
 
Location: North Idaho
18,477 posts, read 21,372,641 times
Reputation: 31537

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I'm closing today on an all cash sale. The buyer did his own inspection before he made the offer. The title company is handling all the paperwork. Closing was 10 days, start to finish, only because the escrow company was swamped. It could have closed in half the time if the paperwork had gotten done. No agent involved.

I am taking the money I get today and buying a different house, all cash. I have an agent for that one, I paid an inspector to check and make sure everything is OK. I will not have an appraisal, because it doesn't matter. I like the house, I like the price, I've got the money to pay for it, I don't care what a bank thinks about it.

I am selling one right now that is in escrow that has been a real pain. After all the negotiating and all the demands are settled, we still have to have the bank's appraiser out before the bank will decide whether or not they will give the money for the purchase. After the bank has decided that the house is worth the money, they will look at the buyers again and make another decision about whether or not they still want to loan to them. Of interest rates have gone up, buyers still get to decide whether or not they want the mortgage. So, I will not know whether or not the house is actually sold for another month. In the meantime, if the bank says no, I have lost the entire summer sales season and the house will be back on the market past the easy sales days of summer.

I'd much rather have an all cash offer. Incidentally, closing costs are lower when there is no bank involved.
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Old 08-25-2017, 01:27 PM
 
Location: The sleepy part of New York City
1,762 posts, read 774,141 times
Reputation: 3753
Quote:
Originally Posted by howard555 View Post
I like the idea of cash but want all the legal documents prepared by a real estate lawyer who handles closings to protect us against any future issues of all kinds including personal injury due to some structural failure. I won't be able to force them to buy home owner's insurance. I want to be protected. Similar to the standard bill of sale when you sell a car. Release of liability.
I'm no expert on real estate but if they're buying your home then the title would be in their name whether they pay cash or get a mortgage. If they pay cash then you don't have to wait for their financing to come through.

How would you be responsible financially if anything happened to them once they did buy it? Once it's sold it's theirs and their choice whether to get homeowners insurance or not. That has nothing to do with you.

Maybe I'm not understanding you correctly?
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Old 08-25-2017, 02:04 PM
 
7,006 posts, read 4,345,114 times
Reputation: 7317
Quote:
Originally Posted by howard555 View Post
I like the idea of cash but want all the legal documents prepared by a real estate lawyer who handles closings to protect us against any future issues of all kinds including personal injury due to some structural failure. I won't be able to force them to buy home owner's insurance. I want to be protected. Similar to the standard bill of sale when you sell a car. Release of liability.
You can also ask a Real Estate agent or broker how much they will charge to do the paperwork and maybe be at the closing. Shouldn't be that much and they don't have to do as much work.
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Old 08-25-2017, 02:25 PM
 
2,085 posts, read 4,025,477 times
Reputation: 3327
What difference does it make how someone wants to pay? Why would you think that the buyer is trying to impress you by paying cash? That's just bizarre.
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Old 08-25-2017, 02:41 PM
 
2,766 posts, read 2,237,524 times
Reputation: 5452
Quote:
Originally Posted by 2bindenver View Post
How are you going to determine the fair market value?
This is important. I've seen sellers and buyers get so caught up in avoiding a commission that one of them loses far more than the amount of saved commission. Knowing fair current value is paramount. If the OP can get a cash buyer focused on the smoke screen of saved commission he stands a chance of selling at over fair value. Could just as well be the other way around. It works for the more knowledgeable party, and may well be the tactic the buyer is already using.
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Old 08-25-2017, 02:58 PM
 
4,066 posts, read 10,827,561 times
Reputation: 2257
Quote:
Originally Posted by Brandon Hoffman View Post
You don't have to use agent on any sale, financing is irrelevant. However, the fact you even have to ask makes me think you need someone watching out for you, whoever that may be. I'm not here to tell you to use an agent or not. It's your choice, if you're happy with a deal being offered go with it. Truth is nobody here cares what you do.

Because he's been to other countries and can pay cash you assume he must be from the North? Why do you assume that, why does it matter, why do you care, why do you even bring it up?


Sincerely, a real estate agent.
^^^^^^ this.
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Old 08-25-2017, 03:14 PM
 
Location: Wasilla, AK
3,851 posts, read 1,844,182 times
Reputation: 6927
Having a cash buyer means there will be no foul-ups with the lending process vs those who are financing. I'm sure there isn't a realtor in this forum who hasn't seen a deal get delayed or canceled because the buyer's financing had some type of issue. A friend of mine had his cash offer accepted over two higher offers that were to be financed. Cash buyers will normally have the edge.
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Old 08-25-2017, 03:22 PM
 
Location: Wasilla, AK
3,851 posts, read 1,844,182 times
Reputation: 6927
Quote:
Originally Posted by howard555 View Post
I like the idea of cash but want all the legal documents prepared by a real estate lawyer who handles closings to protect us against any future issues of all kinds including personal injury due to some structural failure. I won't be able to force them to buy home owner's insurance. I want to be protected. Similar to the standard bill of sale when you sell a car. Release of liability.
That's just crazy. It is up to the buyer to have the property inspected if they are concerned about any issues. If you properly disclosed any issues you will not be on the hook for any subsequent issues that might arise. I've never heard of a lawyer being involved in the sale of a home in Alaska or Arizona. Title companies handle all that in both states. The only time I would ever use a lawyer is if I bought in a state where it's required, which is apparently the case in some states.
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Old 08-25-2017, 03:24 PM
 
Location: Wasilla, AK
3,851 posts, read 1,844,182 times
Reputation: 6927
Quote:
Originally Posted by mathjak107 View Post
we bought our homes with no mortgage but we certainly used an appraiser and inspector .

one thing has nothing to do with the other . you still need to do your own due diligence
Why would you have a cash purchase be appraised? Sounds like a waste of money. I had my house inspected, but skipped the appraisal. Especially since I knew I was getting a screaming deal.
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Old 08-25-2017, 03:44 PM
 
2,332 posts, read 1,258,926 times
Reputation: 1812
Quote:
Originally Posted by headingtoDenver View Post
To me, a cash sale would be king. No worry about financing falling through. No worry about appraisal meeting the sale price. No waiting for the buyer to sell their house first.
This is the reason why you should be impressed with a cash offer. I would even give a discount to cash buyers.
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