Do you have the ability to pay cash for the property?

Reblogger Jill Watts
Real Estate Agent with Realty Pro, Inc. #96851

Thank you Richard for an awesome explanation about people AND properties have to be qualified for a loan. Some properties allow ONLY certain payment terms. 

Original content by Richard Weisser

Do you have the ability to pay cash for the property?I had a call about a rural property that has some serious issues. In addition the listing price is less than $25,000.

The caller wanted to set up a time to see the property. As part of my interview, I asked the question:

“Do you have the ability to pay cash for the property?”

The answer was an ambiguous: “Possibly”

I tried to delve further but was met with resistance.

I was not trying to trick or embarrass the caller.

I was just trying to communicate the fact that it was very unlikely that the potential buyer would be able to get a loan to buy the house.

The poor condition of the property made it uninsurable for FHA and VA, and few lenders will write a conventional load for that small of an amount.

Many buyers are not aware that just as not every person qualifies for a loan, not every property does either.

And if you can’t get a loan, then paying with cash is the only option.

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Richard Weisser is a candidate for Georgia House District 71

All content, including text, original art, photographs and images, is the exclusive property of Coweta Fayette Real Estate, Inc., and may not be used without the expressed written permission of Coweta Fayette Real Estate Better Homes and Gardens Metro Brokers, Newnan Georgia. All information is believed to be accurate but is not warranted, Copyright 2003-2009. Richard Weisser REOS, E-Pro. licensed Auctioneer. 770-827-6225.
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Rainmaker
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Cooper Jacobs
Looking For A Seattle Realtor? COOPERJACOBS.COM - Seattle, WA
Real Estate Brokers - Seattle

Great point. Paying cash is a solid way to go because it's simpler financing and fewer things can go wrong and hold up the sale so a seller is going to like that offer better.

Thanks for sharing Jill.

Feb 09, 2013 09:12 AM #1
Rainmaker
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Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

All homes must have a reasonable "net effective life" for the lender to be able to invest mortgage money in.  It surely sounds like this home did not qualify.  And the low loan amount made sure of it.

Also... if the buyer is thinking about purchasing it, putting some money into it, and then flipping it... it still might not qualify for a mortgage.  Not a good investment, methinks.

Feb 09, 2013 11:08 AM #2
Rainmaker
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Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Jill, many folks out there barely have enough money to pay cash for the groceries.  But, I have a feeling things will get better this year... better for a lot more people than is the case right now.

Feb 09, 2013 04:09 PM #3
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Rainmaker
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Jill Watts

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