Beating the Cash Buyers?

[nemmert]

Originally Posted by KarmaPhx

Real Estate Agent, my fiance's uncle.

He can't be our realtor, and do the apprisal right? That sounds like a conflict of interest.

The bank will do their own appraisal... part of the fall out from the financial bubble. You realtor will have little to no input on the appraisal value as the appraisors are being paid by the banks and are now interested in protecting the banks.

As others have said... if it's listed as cash only, my first thought would be the bank knows you can't get financing for that amount for the home which either means it's in horrible shape or more likely is simply not worth what they have it priced at.

[SOON2BNSURPRISE]

I noticed that some builders are offering new homes between $70,000 and $110,000. Trend lists some that on their web site. Trend also has a deal where if you help paint the home they will use your labor as part of the down payment amount. I thought that was kind of cool. Not sure how far away you will be living though in a $70,000 new home. I noticed homes in the Buckeye area that are selling for under $100,000. Not sure how current some of the online sites are. Someone mentioned that Realtor.com is dated and the homes listed their may have sold allready.

[KarmaPhx]

We are considering a longer commute to work if it means a newer home.

[cmist]

Originally Posted by KarmaPhx

Yes they do, cash means a quick sale.

We are discussing www.realtor.com not the MLS listings, unless it's the same thing?

Example: 15244 N 36Th Street, Phoenix, AZ, 85032 - MLS #4278845 - Single Family Home real estate - REALTOR.com® (http://www.realtor.com/realestateandhomes-detail/15244-N-36Th-Street_Phoenix_AZ_85032_1113633599 - broken link)

Realtor.com is pulling the info from the MLS, so ya they are the same.

Also, its true that cash is usually the requirement when a home is basically uninsurable by the lender because it needs major work, like roofing, plumbing, electrical. Other loans like FHA are a real PITA for sellers because FHA has a long list of requirements that they will FORCE the seller to do in order to get the approval, so many sellers/bank owned properties just outright do not accept them.

Its not that low priced properties themselves have a cash only requirement, it just happens to be that the properties that need the most work are usually the cheapest.

You can find homes that would not require cash only that are under 100k if you keep looking, all it takes is to find one that doesnt require enormous amounts of remodeling. Best advice is to work with a good realtor that is watching the market constantly for you.

Pretty much every single online site out there is pulling info from the MLS system. Some may update more often than others, but they all are lagging behind the real inventory somewhat. Its the realtors that pull up to the second info that can get you ahead of the packs that are using zip realty or realtor.com type sites.

[Greatday]

Originally Posted by nemmert

The bank will do their own appraisal... part of the fall out from the financial bubble. You realtor will have little to no input on the appraisal value as the appraisors are being paid by the banks and are now interested in protecting the banks.

As others have said... if it's listed as cash only, my first thought would be the bank knows you can't get financing for that amount for the home which either means it's in horrible shape or more likely is simply not worth what they have it priced at.

Appraisals are more often than not required as a condition of a new loan. And, very frequently, appraisals are paid for by the buyer. Appraisals are ordered through the lenders (not just banks) and the appraiser is chosen from a list of "fee appraisers" - and are picked on a rotation basis (more often than not).

If the appraisal is insufficient to cover the loan, buyers are generally provided several options / escapes including walking from the contract or, putting up the difference in cash.

[rjrcm]

Originally Posted by KarmaPhx

Does anyone think it's possible to find a home under $100k without having to pay cash? Seems like everything is "Cash Only".

Just closed one today for $65K FHA loan in Mesa. Took a lot of looking and offers, but got it done.

[rjrcm]

Originally Posted by KarmaPhx

Real Estate Agent, my fiance's uncle.

He can't be our realtor, and do the apprisal right? That sounds like a conflict of interest.

No, he can only do comps to give you an idea of value. Your lender will hire the appraiser.

Many of the bank homes under $100K will have some sort of damage that will preclude at least an FHA loan, and many will not qualify for conventional either. That's why they say cash only.

[KarmaPhx]

We want to do a bit of remodeling without getting in over our heads, things like painting, tile (used to apprentice), landscaping, etc. Nothing major.

[Greatday]

Originally Posted by KarmaPhx

We want to do a bit of remodeling without getting in over our heads, things like painting, tile (used to apprentice), landscaping, etc. Nothing major.

The "cash only" would more than likely be more than what you and your "intended" really want Josh.

As another person pointed out - if they won't qualify for FHA or other financing, there is likely to be some large issues to be dealt with.

Don't be discouraged though - there are lots of "bargains" out there right now - it is a good, no - GREAT time to be looking.

Good luck to you - I know how exciting - and nerve wracking it can be - yet, it can be loads of fun tool