What is an ALL CASH offer (FAQ#2)?
This seems so simple and self explanatory, isn't it? We thought so too. Until we see many buyers come to us with many variations of 'ALL CASH OFFER'.
IN TRUE DEFINITION (and probably in the rest of the country or world), all cash offer means: you have all the cash in your personal bank account or you have the liquid asset such as stocks and bonds to convert into cash in the matter of few days.
All cash offer is NOT the following:
- Home equity loan from another one of your property=NOT ALL CASH OFFER.
If you have to borrow money from the bank, this is still NOT all cash. Whether it is an home equity loan or cash line on your other all paid for property. The bank still has to do their due diligence (appraisal, underwriting, and review process etc). Although technically this is not a traditional all cash, if the home equity or cash line is already in your existing US bank account, then it can be considered by sellers as all cash since all the bank reviewing process is all completed.
- Financing, borrowing money from the bank=NOT ALL CASH OFFER. Clearly, if one is financing, the money is borrowed. Buyers often ask us, what is the different for the seller that is receiving borrowed money from the bank or the all cash directly from buyers bank account. The answer is, as long as a bank has to get involved, review the property, the process in today's market place can take anywhere from 60 days to 160 days and beyond, and that timeframe makes a huge different to the seller. And if the deal is mortgage contingent, the seller will have no certainty for the unknown period of time. (although this item seems like a no brainer, we still have buyers tell us they have 'all cash' offer and when we ask for proof of funds, they show us their pre-approval paper instead of a bank account statement.)
We work with many all cash buyers from oversea and depend on each buyer's specific scenario, we discuss with them in how to best prepare their purchase before they arrive at New York city. Working with us, you can rely on our past experiences to advise you what is the best solution according to your unique scenario.
Many buyers have to plan on wire transfer their funds or moving the funds to U.S. bank accounts, some countries do have wire transfer limitations and restrictions per year or per person. Planning ahead is the key.
Please contact us directly if you plan on purchase in Manhattan New York so we can better plan your purchase prior to your arrival.
Other Frequent Asked Questions:
As a foreign buyer how much down payment I need to buy a NYC Condo?
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