Your mindset and pre conceived notions of an area and the market could cost you thousands of dollars. It is important to know and realize that being a cash buyer has different results in different parts of the country. In many Northern markets that have been slower to come back Cash is King and you can find yourself in the driver’s seat in a transaction. In many South Florida Markets over 50% of all transactions are cash and you can find just the opposite, Sellers are sitting there waiting for you to fall into their trap.
It is not uncommon to see properties well overpriced with the Seller saying I will just wait for a cash buyer because they know they are overpriced and their property will never appraise.
Tip number 1
When paying cash no matter how good of a deal you think you are getting get an Appraisal. At the very least have your Realtor do a CMA (Comparable Market Analysis) to give you the true Current Market Value of the home you are looking to purchase.
Tip number 2
Take advantage of your Inspection Clause in your agreement. Have a professional do an inspection. There are any number of ways to hide problems in a home. Fresh paint and new carpet can also be a red flag not just a selling point. Here is another place where a couple hundred dollars for an inspection could save you thousands in repairs later.
Check to see that any work done on the property had proper permits. If it is discovered later after you close it becomes your problem and once again we could be talking thousands of dollars. If you have any questions about buying a home as a cash buyer you can contact me personally at [email protected]
F. William (Billy) Hineline
Treasurecoast.com
Resident Real Estate Expert and Contributor
President FWH Professional Group