U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old Yesterday, 06:08 PM
 
10 posts, read 1,027 times
Reputation: 25

Advertisements

Quote:
Originally Posted by 2bindenver View Post
Realtor here. How are you going to get an appraiser into the house? What happens if there is a delay in underwriting?

There are companies that will buy the house of your choice for cash and sell it back to you a week later.
Fair question Realtor. I'm not trying to "hide" the fact that I want a mortgage on it. I proposed some language as above, etc. Basically I'll guarantee a purchase with cash, I'll get a mortgage if I can. Couldn't I waive the mortgage/appraisal requirements and take that risk on myself? If it doesn't work out, then close with cash.

The seller is not gonna let my appraiser in the house in that situation?

I get your point here, but it seems like a lot of realtors want to point out all the issues that deviate from the "norm" instead of looking at how to get a deal done that - in this case - would meet the buyer's ideal and not harm a seller.
Rate this post positively Reply With Quote Quick reply to this message

 
Old Yesterday, 07:33 PM
 
Location: Orange County, CA
254 posts, read 50,178 times
Reputation: 279
The seller might not go for it, when he sees your proof of funds is in investments. Cash means liquid. When I showed cash for my purchase, the money was in a fully liquid savings account because in preparation for home purchase, I had cashed out my investments a few months ahead.
Rate this post positively Reply With Quote Quick reply to this message
 
Old Yesterday, 07:35 PM
 
Location: Just south of Denver since 1989
11,516 posts, read 31,371,297 times
Reputation: 8195
If you make an offer that says, “I’d like a mortgage, but will pay cash if I have to” I’d counter out all the mortgage contingencies like appraisal and loan approval and make you pay cash, or take a cash offer over yours.
Rate this post positively Reply With Quote Quick reply to this message
 
Old Yesterday, 07:41 PM
 
30,756 posts, read 29,518,851 times
Reputation: 11654
Sounds reasonable to me, if you can in fact guarantee the funds. Doesn't "all cash" mean you deliver 100% of the contract price at closing?

How you come up with the money would seem to be your business.
Rate this post positively Reply With Quote Quick reply to this message
 
Old Yesterday, 08:40 PM
 
Location: Rochester, WA
9,241 posts, read 5,965,381 times
Reputation: 24816
Quote:
Originally Posted by nyc2pit View Post
Thank you for your response, Diana. Unlike the post above you that impugns my character, I understand your point.

So I need to learn more - but it seems what would be better here would be a cash-out refinance then? Are there downsides I should be aware of? I am aware it could fail inspection and not be able to get a mortgage, or not appraise appropriately, etc. Are there other major risks?
A refi on your existing house will still take time and an appraisal... needs to be started long before to assure you're done on time.

Talk to a lender about this, and the timelines, and your particulars that you can't or shouldn't share here.


It's a mistake to try to hide it... but an approved and underwritten loan set to close in a short time with no red flags is almost as good as cash.
Rate this post positively Reply With Quote Quick reply to this message
 
Old Yesterday, 09:48 PM
 
Location: El paso,tx
3,838 posts, read 1,574,182 times
Reputation: 7001
Just write it up as a financed deal, not contingent of approval, waive the appraisal *agreeing to pay any difference between appraised value and selling price (or if you are putting 20% dn on conventional financing, and it isn't a jumbo loan, and you have good credit, then you can get a freddie mac appraisal waiver before even turning in an executed contract. If you do that, then decent lenders can close in 2 weeks.)
No need to be deceptive.
Rate this post positively Reply With Quote Quick reply to this message
 
Old Yesterday, 09:49 PM
 
Location: El paso,tx
3,838 posts, read 1,574,182 times
Reputation: 7001
Quote:
Originally Posted by DrPibbs View Post
The seller might not go for it, when he sees your proof of funds is in investments. Cash means liquid. When I showed cash for my purchase, the money was in a fully liquid savings account because in preparation for home purchase, I had cashed out my investments a few months ahead.
Investment accts like stocks/mutual funds are considered liquid assets
Rate this post positively Reply With Quote Quick reply to this message
 
Old Yesterday, 09:53 PM
 
280 posts, read 87,226 times
Reputation: 704
Quote:
Originally Posted by nyc2pit View Post
Hendrix/Joy/Chas/Trobes.

Appreciate the time you all took in your replies. It's nice to know I'm not totally off-base here.

The speed of closure is obviously one drawback - obviously can't get a mortgage together in 2 weeks so if that's the goal, then this wouldn't be a great option.

Joy - I did read about that delayed financing. I don't understand what the difference between that and a cash-out refi would be, exactly. But something more to look into.

Just trying to think a little creatively in a market where I don't want the answer to be "just make a higher offer." It was all I could do to hold my nose and make the offer at FULL asking .... ugh ....
I just sold a house that got 15 offers on in 48 hours. I will tell you the one I picked was 52K over asking, cash offer, close in three weeks. If you want the house, go bold.
Rate this post positively Reply With Quote Quick reply to this message
 
Old Yesterday, 09:54 PM
 
6,161 posts, read 8,734,477 times
Reputation: 3653
Quote:
Originally Posted by 2bindenver View Post
If you make an offer that says, “I’d like a mortgage, but will pay cash if I have to” I’d counter out all the mortgage contingencies like appraisal and loan approval and make you pay cash, or take a cash offer over yours.
Doesn't sound like OP was planning to include appraisal/loan contingencies anyway...

Sure, a cash offer with the same exact remaining terms may beat OP's, but if I was a seller I'd take OP's offer over a cash offer for say $1k less and everything else equal, which I wouldn't do it it was definitely a loan. I'm not a realtor, but IMO the main advantage of a cash offer is guaranteeing that the funding will be there and can't get delayed. OP is doing that with this proposal so I don't see the problem as long as it's spelled out.

Yes, as mentioned speed is also a factor but I'd think that's secondary in most cases, and as long as OP specifies a desired closing date it's not deceptive. And if someone is living in the house, a lot of times they don't want to close in 2 weeks anyway, especially if they may be trying to find another house.
Rate this post positively Reply With Quote Quick reply to this message
 
Old Yesterday, 09:57 PM
 
Location: Denver CO
23,529 posts, read 15,003,830 times
Reputation: 36554
I sold my last place to a cash buyer. No appraisal, and he waived a professional inspection as well, and of course waived any financing contingency. We closed in 2 weeks from the signed contract. It would be impossible to do that if you tried to substitute in a mortgage instead of the cash. Of course in my case, he actually had the cash on hand, not in investments, as he provided proof of funds with the offer, which a cash buyer is expected to do. So all in all, it's unlikely you would get through an offer that you were claiming was cash when in reality, it wasn't.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top