What Every Temecula Real Estate Cash Buyer Need to Know

In todays volitile Temecula Real Estate Market, cash buyers may have the upper hand when it comes to negotiating a contract with a quick escrow, but there are still several important considerations that must be taken before rushing into a contract to purchase any real estate - whether it be for a primary residence or as an investment property.

A huge advantage the cash buyer has is the lack of limitations imposed by lenders and the government through their loan guarantee programs. However, having the freedom to negotiate contracts without these restrictions does not mean that any home buyer should forgo their due diligence and overlook these important safeguards.

Title Search:

 A thorough Title Search will identify all liens on the property, identify their sequence and help identify any title problems you may face in attempting to close escrow. If buying from the Trustee 's Sale, this may be your strongest defense against potential problems with the property.

Title Insurance:

Title Insurance is a must have for any cash buyer - especially if buying a distressed property such as a foreclosure or short sale. Title Insurance will guarantee a clean title at the end of escrow and insure that there are not any outstanding liens or other encumbrances on the property. Unfortunately for the buyer at the Trustee's Sale, Title Insurance is not available.

Home Inspection:

Many savvy cash investors rely on their own expertise and judgment when considering to purchase a home. Many are very successful relying on their own intuition.  However, it is always recommended that a second set of eyes review a property to uncover any possible defects or hidden maintenance issues.

Termite Inspection:

Just like a home inspection, a licensed termite inspection can save the cash buyer by identifying expensive termite issues that may not be easily visible to the untrained eye.  In Temecula and throughout South-West Riverside County, termites can be a very expensive problem to have and not an uncommon one.

Property Tax Estimate:  It is important to have a fairly accurate estimate of what the property taxes will be to include any and all special assessments and Mello-Roos.  Even if the cash buyer is intending to flip the property, they'll want to be able to pass on this information to the new buyer. 

Appraisal:

 An Appraisal will help insure that your purchase price will be fair and meet your financial goals.  No one wants to pay too much for a property.  Investors are always looking for the right margins to bring a deal together.  In lieu of a formal appraisal, a good Realtor that works with Investors will be able to provide a fairly comprehensive Broker Price Opinion (BPO) or Comprehensive Market Analysis (CMA).

Survey:

 Throughout the Temecula Valley and South-West Riverside County there are many rural and semi-rural properties with irregular lot shapes.  Even 'normal' residential lots can be confusing at times and what appears to be a property boundary may in fact be off.  If there is ever any question or concern about a properties boundaries or easements on it, a survey can eliminate future problems for the new homeowner.

Natural Hazard Disclosure:

  A Natural Hazard Disclosure Report will identify flood zones, fire hazards and other environmental issues that may be entirely overlooked if not called out in the Natural Hazard Disclosure (NHD).  Your home owners insurance may require additional coverage based on the results of this report.

Hazard Insurance:

 Real Estate should always be bound with a good Homeowners Insurance policy - even if the cash buyer will be fixing and flipping the property in 90 days or less or if the home is being purchased as a primary residence.  Consider your deductions and just what type of coverage you require when consulting with your Insurance Agent.  You may receive substantial discounts when combining coverage with your auto or other coverage's.

Seller Disclosures:

An institutional seller, such as a bank, trustee or government agency will have limitations as to what disclosures, if any, they must provide.  When buying real estate directly from the occupant or private seller, there will be disclosures available that you should review thoroughly before making a decision to purchase any real estate.

Home Owners Associations:

 Home Owner Associations (HOA) will have dues or fees that are paid at a regular interval.  Some are monthly while others are quarterly or annually.  The cash buyer or Temecula real estate will want to know both how much and how frequently the fees are due as well as what do they cover.  In some cases HOA dues will include water, trash, sewer and landscape services.  Others will include recreation facilities such as a clubhouse and community pool.  Every HOA is unique and different - so make sure to do your due diligence here.  Also make certain you investigate to see if there are any limitations on the use; i.e. age, rental, RV storage, etc.

As a Temecula - Murrieta Valley Real estate professional and consumer advocate, I will always ensure that your best interest are protected.  Ultimately, the decisions you make on any real estate transaction are yours - as you will either reap the rewards or suffer the consequences...but as your professional adviser I will ensure that you have the tools and information available to make the decision.

Please call me anytime to discuss what you are looking for in a property and how we can work together to get you the best possible property when looking to purchase Temecula Real Estate as a cash buyer and take advantage of the buying power of your hard earned money in this exciting time to be a real estate investor.