This information is courtesy of Eric Wachtel, Sales Manager of the Green-Uniontown Howard Hanna office. I thought it was fantastic information to give a cash buyer. He writes:
As a cash buyer you must be aware that certain steps of the process, designed to protect a Lender's investment in a buyer's loan, are not required when real estate is purchased on a cash basis. You should consider carefully whether you desire the protection of any of the following important aspects of purchasing real estate.
APPRAISAL - A Lender requires an appraisal. You will need to request and pay for one if it is of interest. An appraisal is a third-party estimate of the real estate's value at a particular time.
SURVEY - A Lender requires a survey. This ensures that accurate boundaries are identified for the real estate being purchased. You will need to request and pay for one if it is of interest.
INSURANCE (Property) - A Lender requires hazard insurance. This insures against loss of property. You will need to request and pay for this if it is of interest.
INSURANCE (Title) - A Lender does not require title insurance. However, this is your means to insure yourself that you take ownership of the real estate with "clear title". This will be provided for you if you choose to utilize a Title Company for your purchase, as provided in your sales contract.
ZONING - A Lender does not require a zoning review. However, zoning regulations can have consequences on future plans for the real estate. If of concern to you, you will need to pursue zoning status and stipulations with the local and/or county zoning and/or building department(s).
When purchasing real estate on a cash basis, be sure to ask your Realtor any questions you may have about the above items.