Tips for Cash Home Buyers

By
Real Estate Agent with Maximum One Realty Greater Atlanta

Owning a home has always been considered a great investment.  Nowadays, many buyers are choosing to buy real estate for cash, thanks to low prices, a huge inventory of foreclosed properties, and poor rates of return on other types of investments.  Although the only legal requirement for a cash purchase is the money, there are several important considerations for a cash buyer:

  - Home Inspection - never buy without one

  - Appraisal - there is no lender appraisal, so this is the only way to insure that the purchase price is reasonable

  - Survey - always recommended for small lots and properties in older or urban areas

  - Flood Zone Determination - a lender always checks this, and a buyer should also

  - Hazard Insurance - always have the property bound with insurance from the closing date (do not put this off)

  - Termite Inspection - a termite problem can be a major expense

  - Water Bills - look at recent water bills to make sure they are not unreasonably high - this could reveal a leaky or broken pipe

  - HOA Dues or Condo Dues - inquire about pending assessments or increases in dues - check the foreclosure rates, owner/occupancy rates, and financial stability of the complex and association.  Due diligence is most important here!

  - Owner's Title Insurance - this is imperative for the cash buyer, especially when buying a foreclosed or distressed property such as a short sale

If you are fortunate enough to purchase real estate without a mortgage loan, be sure to secure your investment by following these guidelines.

 

 

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Rainmaker
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Ellie Penaranda
239.776.5077 Downing-Frye Realty - Naples, FL
Naples Florida Real Estate - Waterfront & Beach Co

Anne:  amazing how many agents don't address the appraisal term in depth with the cash buyers and happy to see one less contingency on their buyer's offer.  We strongly recommend they include it in their offer and decide later whether they conduct one or not.  I've noticed cash offers without an appraisal contingency encourage sellers to counter higher than they would have otherwise.  Good read.

Nov 16, 2010 03:44 AM #1
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Rainmaker
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Anne Ortiz

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