Cash house purchase (appraisal, foreclosed, agent, mortgage)

[1stfamily]

me and my wife desided to invest in a rental property which is a townhouse, it sold for 65k in 2006 but since the foreclosure and all has hit atlanta so hard they are selling it for 11.5k. everything with the inspection checks out we offered 9000 which they countered with 11.5k, they refuse to go any lower then the asking price, my question is are their any tips to get the seller to loosen up a little? and also our real estate agent i guess isnt making much money on this deal and isnt very helpful so i wanted to know when making a cash purchase of a house how much would i expect to pay for closing costs etc and whats the whole cash purchase process Thanks

[Tenzo]

At that price they may not be able to go any lower, they may have leans of that amount and are unable to satisfy the leans.

Your broker won't even be breaking even on gas money so she isn't going to be too enthusiastic on the sale. That's not an excuse. As a professional she should give you good service.

Only ideas that I would have (like offering them $8,000 cash in hand and sell the house for $2,000) would be unethical, perhaps even illegal.

Ask your real estate agent to pull up any leans on the house.

[2bindenver]

If you don't have your own agent, hire an attorney.

Basic process: contract to purchase> title> inspection> appraisal> survey> closing docs drawn up by title or escrow> get a cashier's check or wire money to close> sign docs> own townhouse.

[1stfamily]

Thanks for the helpful info guys i guess we'll have to settle with the asking price and accept their offer. i forgot to mention but they did also counter with 11.5 and 500 towards closing costs but im not too sure on how much closing costs will be

[Chuckity]

When it comes to closing, cash deals are easy peasy.

Most of the docs generated at closing are mortgage related - paperwork is pretty minimal in comparison.

Closing costs should also be minimal - but without knowing if there are transfer taxes involved, how property tax is paid & other local fees, the best guesstimate would come from your agent or the title company.

[1stfamily]

thanks for all the good answers and advice, i have one more question, at the closing are we required to buy homeowners insurance? or is that only with mortgage purchases?

[Pawdog]

No requirement for insurance on a cash sale, but it would be a wise move to cover at least the appraised value of the property. Good luck with the purchase, sounds like you're getting a deal!

[rjrcm]

Originally Posted by 1stfamily

thanks for all the good answers and advice, i have one more question, at the closing are we required to buy homeowners insurance? or is that only with mortgage purchases?

Since it will be a rental, you should consider a landlord insurance policy to cover the structure and liability. Renter can get a renters policy for their stuff.

[DanBev]

I just closed on foreclosed home in Vernon Ct with attorney also signed power of attorney paperwork so as not having to be there.As stated cost minimal,$650 to attorney,title search $150 and etc.Total cost under $1000.Completed in 14 days thru Fannie Mae if my spelling is correct.

[DMenscha]

11.5K for something habitable? Wow! It might be pretty hard to see the downside in something like that.