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What does it mean when you see CASH ONLY when Buying a home?

By
Real Estate Broker/Owner with Godzyk Real Estate Services NH License 033394

I list and sell all types of homes. From luxury homes, starter homes, retirement homes, vacation homes, investment homes, new homes and homes needing lots of work. There are some magic words you may see when looking for a Manchester New Hampshire area Home. Those are "CASH ONLY."  

 

The most popular questions is often what "cash only" actually means. Followed up by "WHY?"

 

There are two common reasons a home i listed as "cash only." That would be the home needs so much work, you can not get a mortgage. The most common reason is when the home goes under contract, the seller wants to make sure it 100% will close. That it wont come back on the market due to an inspection, appraisal or the buyers mortgage company rejects the loan.

 

Recently I listed a couple of homes for a local investor. He had bought a group of homes at auction and needed to liquidate a couple of them. He had the homes cleaned out and out them back up for sale with me. It was to be sold "as is", No contingencies, no repairs and cash only.

 

The calls and emails came in fast and furious. Let me share a couple of them.

 

1. Will the home go FHA?

2. Will the seller rent the home?

3. Will the seller repair the home for that price?

 

Now those were calls from buyer agents who most likely did not read the description. In the end I had a list of local cash buyers. They all saw the house and made their best cash offers Within a day the home was under contract with a very happy seller. 

 

The moral of the story is that it is important that every Buyer or Seller should not just choose any agent, choose the BEST agent for the job. Having an agent that works for you is a must. 

 

My philosophy is simple, provide more personal and professional service to guide my clients through each step of the buying or selling process. All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest. Those that hire me, find a dedication like no other.

 

Comments(4)

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Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Scott - when any property hits the market for sale, the seller and their agent hope questions will be asked.    Of course, if that property comes along with a  "cash only" stipulation, there won't be a long discussion about renting, leasing-to-own or any mortgage options.  It's time for buyers to move on to the next property.  Don't waste your time or the agent's.  

Feb 20, 2021 10:14 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good evening Scott Godzyk ,

It always amazes me that agents don't read the descriptions first before firing off a lot of questions. They wouldn't be wasting everyone's time.

Feb 20, 2021 04:21 PM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

As you point out, there are several reasons to list a home as "cash only" - Bottom line it means cash only. No loans, rentals, or owner financing.

 

Feb 22, 2021 06:07 AM
Ed Silva, 203-206-0754
203-206-0754 - Waterbury, CT
Retired Real Estate Broker

Too many agents want all their work done for them and don't even take the time to do their homework.  Those are the agents that buyers and sellers should avoid

Feb 23, 2021 04:51 PM