Everyone who has ever considered purchasing a property with cash knows that you still have to do your research. For all the time and money you can save, you can still be taken for a ride if you don't do your research before the deal is done.
Make sure they know it
A cash buyer is much more appealing because they do not need loan approval for the process to go through. That is why they can generally get more stuff out of the deal. They might be able to get a faster closing date, home fixes, a warranty and many other things such as closing costs.
Specific broker to look for
To be able to keep away from potential legal problems in the future, it's a great idea to use a real estate broker or lawyer who has cash house sale experience. You would like a clear title on the property, and even in a cash deal, things can accidentally be overlooked.
Know how much you can spend
Make sure you have a ton of extra cash laying around for emergency situations before taking everything you have and putting it into a house.
Keep away from potential problems
If the home turns out to be a "Money Pit" a la the Tom Hanks film of the same name, you'll want to make sure you still have an escape hatch before things go south. Schedule a property inspection before finalizing the deal. If the seller seems particularly desperate to sell or the property has been on the market for a while, use that in your favor and make an effort to get them to cover the inspection. It's cutthroat, but that's life in the big city.
Be aware of total costs
There may be hidden costs, so make sure you have additional money for those things. This can include paying for an appraisal, origination charges and more. You may even need a variety of additional cash to cover the property improvement costs.
No mortgage
There are a lot of tax benefits to having a mortgage, and a cash sale will just not do it. It will be easier to borrow credit later for those who have a mortgage as well.
Appraisal still important
It is totally worth the couple of hundred dollars to pay for an appraisal to get completed, even if it does cost a few hundred dollars to do.
Make sure they know it
A cash buyer is much more appealing because they do not need loan approval for the process to go through. That is why they can generally get more stuff out of the deal. They might be able to get a faster closing date, home fixes, a warranty and many other things such as closing costs.
Specific broker to look for
To be able to keep away from potential legal problems in the future, it's a great idea to use a real estate broker or lawyer who has cash house sale experience. You would like a clear title on the property, and even in a cash deal, things can accidentally be overlooked.
Know how much you can spend
Make sure you have a ton of extra cash laying around for emergency situations before taking everything you have and putting it into a house.
Keep away from potential problems
If the home turns out to be a "Money Pit" a la the Tom Hanks film of the same name, you'll want to make sure you still have an escape hatch before things go south. Schedule a property inspection before finalizing the deal. If the seller seems particularly desperate to sell or the property has been on the market for a while, use that in your favor and make an effort to get them to cover the inspection. It's cutthroat, but that's life in the big city.
Be aware of total costs
There may be hidden costs, so make sure you have additional money for those things. This can include paying for an appraisal, origination charges and more. You may even need a variety of additional cash to cover the property improvement costs.
No mortgage
There are a lot of tax benefits to having a mortgage, and a cash sale will just not do it. It will be easier to borrow credit later for those who have a mortgage as well.
Appraisal still important
It is totally worth the couple of hundred dollars to pay for an appraisal to get completed, even if it does cost a few hundred dollars to do.