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This property is different than other previously discussed so a new discussion. The selling agent in a courteous message highlighted the words "cash only."
Tell me all the benefits of cash only to the "buyer."
There will be a mortgage payment by the buyer. The bank will give the seller the cash by check (?)
They have an agent so cash does not eliminate the 6% commission to be paid by the seller.
As is means the buyer could get an inspector but the findings are of no value due to the as is status.
The property would appraise for the selling price so no issues on buyer's bank appraisal.
No other advantages for the buyer on "cash only" beside no mortgage?
There will be a mortgage payment by the buyer. The bank will give the seller the cash by check (?)
They have an agent so cash does not eliminate the 6% commission to be paid by the seller.
As is means the buyer could get an inspector but the findings are of no value due to the as is status.
The property would appraise for the selling price so no issues on buyer's bank appraisal.
No other advantages for the buyer on "cash only" beside no mortgage?
It's not about the buyer. If seller is telling you it is cash only... that usually means there are defects with the property that would disqualify it from financing. And "as is" means they are not interested in fixing anything.
The reality is that any home being listed with the stipulations of "as is" & "cash only" is that the seller is not going to do anything like bicker over what items need to be repaired / updated, offer assistance with closing costs, HOA fees / assessments, or entertain offers that would require seller financing.
For a buyer than can accept these terms the house better either be a screaming deal that an experienced investor will be excited to have for fixing up / flipping / renting out OR in an area with redhot demand where the buyers who can't commit to such terms end up having to offer far in excess of the asking price so not to be shut out...
In my area, something sold "as is" means the seller is not willing to make any repairs as a result of an inspection. One can still walk away from the contract if the inspection turned up major issues. A buyer with a smart agent doesn't give up that possibility.
There will be a mortgage payment by the buyer. The bank will give the seller the cash by check (?)
They have an agent so cash does not eliminate the 6% commission to be paid by the seller.
As is means the buyer could get an inspector but the findings are of no value due to the as is status.
The property would appraise for the selling price so no issues on buyer's bank appraisal.
No other advantages for the buyer on "cash only" beside no mortgage?
It would make for a quick close and you wouldn't have to worry about an appraisal. But the biggest question is does the buyer have the amount of cash available to purchase that property.
When the property is "Cash only" that means that the buyer will not be able to get a mortgage on it.
If the property is listed at $200k.....they would need to have $200k+ in savings to purchase the property. No mortgage.
There will be a mortgage payment by the buyer. The bank will give the seller the cash by check (?)
They have an agent so cash does not eliminate the 6% commission to be paid by the seller.
As is means the buyer could get an inspector but the findings are of no value due to the as is status.
The property would appraise for the selling price so no issues on buyer's bank appraisal.
No other advantages for the buyer on "cash only" beside no mortgage?
The fact that the buyer doesn't bring a suitcase full of bills to the closing does not mean there is a mortgage. "Cash" means the buyer has full funds to pay for the house, and there is no mortgage. That doesn't mean a bank isn't involved, typically via a wire transfer of funds from the buyer's account to the title company, although a bank check is sometimes used too.
And there is every reason for a buyer to still have an inspection, because while they may not be able to negotiate concessions from the seller, they can still walk away from the deal during the contingency phase if the inspection reveals more issues than they are prepared to take on.
But why should there be any advantage to the buyer? The seller wants a cash buyer because they want to be sure that once past the contingency period, there won't be further hold ups such as the loan falling through. And while this requirement SUBSTANTIALLY limits their pool of buyers, they are entitled to that requirement.
The advantage to the buyer is that they are buying the house they want to buy, as long as they have the cash resources to do so. But the seller doesn't care whether there are advantages to the buyer, why should they?
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