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Old 08-25-2017, 09:07 AM
 
8,762 posts, read 12,226,167 times
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These investors who offer cash. Do they realize that a cashed check recevied from a bank on a mortgage is the same as cash? Offering cash does not impress me at all.

Someone in the neighborhood where a home is located is interested to buy the tenant occupied dwelling. Since they live nearby they want it for their parents. They said they could pay cash and would like to tour the home and they were in no hurry, even a few months from now. He and his wife both have good jobs. He has been to over 12 different countries and likes the south and that implies they may have lived in the north USA.
It's also near their church. I think they are legal US citizens. They should be able to get a mortgage with their incomes and with the cash to pay 20% down. He started the conversation and I said well the asking price is not known but it may be at a level that might accommodate a discount of up to 10% for some repair or another and the real estate agent fee is 6%. He said he could pay cash to avoid the agent's 6%.

Can an agent be avoided on a cash sale? I would insist on a legal documents and the rest, closing, etc. with a real estate lawyer in town. I want all the legal necessities to cover any future failure of some device like the heating unit, or any damage due to the failure of some part of the home.

The real estate agent shows the home, gets it listed, takes photos, may have an inspector to do the inspection. I know a home inspector.

What are the reasons to omit the need for an agent?
And go with normal home sale legal documents and a lawyer.

An appraisal might be in the buyers favor so I might like to avoid an appraisal. Then again he has cash and should be able to get a mortgage but there may be some reason they can not. Poor credit maybe but I do not discriminate against people with poor credit and "cash" to buy something.

What are all of the things to consider in this scenario and of course real estate agents are going to promote the need for an agent. Maybe we could use a seller's agent or buyer's agent but not both to save 3%?
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Old 08-25-2017, 09:10 AM
 
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the title company usually is responsible for reporting things regardless of how it is paid ..
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Old 08-25-2017, 09:18 AM
Status: "Not hardly" (set 23 days ago)
 
Location: North Beach, MD on the Chesapeake
28,383 posts, read 34,355,125 times
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OP, when you say "all cash" do you mean you're going to sit at a table while the buyers count out $XXX in unmarked twenties and fifties?

I ask because the phrase "all cash" typically means a sale without a mortgage.
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Old 08-25-2017, 09:30 AM
 
8,762 posts, read 12,226,167 times
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Quote:
Originally Posted by North Beach Person View Post
OP, when you say "all cash" do you mean you're going to sit at a table while the buyers count out $XXX in unmarked twenties and fifties?

I ask because the phrase "all cash" typically means a sale without a mortgage.
They said they would pay cash. But cash offers do not impress me because if they got a mortgage, I'd get the cash any.
Until I know more I won't know how they will pay cash. I think the couple means they have enough in the bank to pay for it depending on agreement on price. Or their parent in another country has the cash and will buy it for them by sending them the cash via an official bank check, etc.

The only thing I wonder is why doesn't the couple with good jobs get a mortgage. Maybe low credit rating or maybe they are not even legal residents of the USA. (?)
When we talked he did not indicate that he wanted to avoid a lawyer or an inspection, just the real estate commission of 6%.
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Old 08-25-2017, 09:34 AM
 
Location: Back in the Mitten. Formerly NC
3,572 posts, read 4,231,438 times
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Plenty of people pay for homes with cash. Most sellers prefer cash buyers. It is usually a quicker process. You don't have to worry about an appraisal. Many cash buyers will waive the inspection.

It is quite common. You are suspicious for no reason.
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Old 08-25-2017, 09:38 AM
 
7,006 posts, read 4,343,095 times
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Quote:
Originally Posted by howard555 View Post
They said they would pay cash. But cash offers do not impress me because if they got a mortgage, I'd get the cash any.
Until I know more I won't know how they will pay cash. I think the couple means they have enough in the bank to pay for it depending on agreement on price. Or their parent in another country has the cash and will buy it for them by sending them the cash via an official bank check, etc.

The only thing I wonder is why doesn't the couple with good jobs get a mortgage. Maybe low credit rating or maybe they are not even legal residents of the USA. (?)
When we talked he did not indicate that he wanted to avoid a lawyer or an inspection, just the real estate commission of 6%.
The thing that should impress you is that you don't have to wait 6 or 8 weeks after the offer is accepted for a bank to approve or deny a loan, that's why a cash sale is the best. People who can pay cash can usually get a mortgage but people who get a mortgage can't usually pay cash for a home, nor can most people.

Pass this up and wait for a mortgage buyer and pay 6% commission for real estate only to find in week 8 that the deal fell thru for many reasons including that the property did not appraise for what is asked or as simple as the sale falling thru because a buyer not being able to submit the right paperwork in time to the underwriter.
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Old 08-25-2017, 09:40 AM
 
8,762 posts, read 12,226,167 times
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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.
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Old 08-25-2017, 09:42 AM
 
Location: Columbia, SC
8,329 posts, read 16,330,692 times
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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.
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Old 08-25-2017, 09:46 AM
 
Location: Columbia, SC
8,329 posts, read 16,330,692 times
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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 have zero idea what you're doing, literally zero. Get help. Then you can complain later that you wasted money and there was no value if you want but get help. It can be an attorney and not an agent since you have a buyer in hand. Sincerely, a real estate agent.
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Old 08-25-2017, 09:47 AM
 
54,883 posts, read 57,241,554 times
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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
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