Foreclosure in Kenosha>Question Details

Deann, Home Buyer in Lake County, IL

I have came into some money and i want to buy a house in all cash. How or where do i start?

Asked by Deann, Lake County, IL Mon Jul 5, 2010

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Well the best way is do talk with a qualified realtor in the area and set some specific quidelines what you want to buy, what you want the return to be etx. Then work closely with the agent and you will get there..The good news is you probably don't have to rush...I don't know what the market is like there but here in AZ there is no urgency for sure...When you find a home that meets your qualifications make an offer on it and close rent it out and start again.
I work with many investors and I also consult with the news here in AZ on stories as well as a fund manager each month, so I have a pretty extensive understanding of the investment market, just now going to be of much help there, you just need to find a great agent that will work well with you to achieve your goals.
Kent Gagon
West USA Realty
0 votes Thank Flag Link Mon Jul 5, 2010
You may want to start by researching online a bit.Then contacting a local realtor to assist you in the viewing of the homes,putting offers in,negotiating,and of course closing on the home.....
0 votes Thank Flag Link Tue Feb 12, 2013
That's a great problem to have!!! Once you find a great realtor, they will want you to get a proof of funds letter. No realtor I know would show homes without one. This lets the realtor know you are serious and it helps you both to figure out what your comfortable price range will be. Good Luck!!
Web Reference: http://justcallmags.com
0 votes Thank Flag Link Wed Aug 4, 2010
Deann, have you found a home yet?
0 votes Thank Flag Link Wed Aug 4, 2010
Some very good answers. Before buying a home in all cash, I would also speak with a knowledgable tax accountant. There may be benefits to leveraging some of that purchase...there may be tax consequences regarding the manner in which you purchase - if you'd like to refinance after purchase to leverage some of your funds and create a better tax scenario, you may find that purchase money financing is better than refinancing a property once you own it outright. Take your time, do your research, and make an informed decision.
0 votes Thank Flag Link Wed Jul 7, 2010
Without much information, budget, overall finances, etc.,--consider consulting with your tax professional first, and see what kind of purchase makes most sense for your situation with respect to any potential tax benefits. Thereafter, interview a few different agents in person and choose the one you like best--then go from there.
0 votes Thank Flag Link Wed Jul 7, 2010
Deann,

Invest wisely my friend. Crunch your numbers on good rental property and it will provide you with years of residual income. Some tips for good rental property:

-next to major services (grocery, banks, dining, etc)
-interstate/freeway access
-low crime rate
-public schools

Good luck

John J Mondello Jr, Realtor
Keller Williams
(225) 229-4411
"I find the house, you make it home."
0 votes Thank Flag Link Wed Jul 7, 2010
You came into that money. That means you did not work hard for it and sacrifice to build it up. Do not look at it as not real. It is easy when something is given to you just to think of it as easy come easy go.

Think real hard when buying a house. Will this house provide me what I want and need enough to justify losing all of this money? Would it be better to wait and get 1.25% a month in a money market (about $110 a month per $100k in the account) or spend it now? If prices appear ready to drop more would I be better off to buy now or pay rent for awhile? This requires looking at how much price drop you expect and compare it to lost bank interest and rent costs.

Once the money is spent it may never be able to be replaced. That is my position. The difference is I have saved a lot of years all I could to build up my nest egg. Is the house you are considering buying really good enough and fit your needs well enough to drain your bank account?

After you buy the house will you be able to afford to pay for insurance, (possible flood insurance), heat, taxes, electricity, replacement roofs, furnaces, flooring, and other problems as they arise (not if but when)? Buying a house is easy. Keeping it not so easy. Repairs will happen. Some minor, some major. Some sooner, others later on. Make sure you keep some cash (if possible) so when the furnace dies and you need $5,000 to replace it you can. It may not happen, but what if it did?
0 votes Thank Flag Link Mon Jul 5, 2010
First, get to know your local market. FInd out about foreclosures there. Do research and find out about bad loans made that will reset through 2012. Second, realize that house prices have an inverse ratio to interest rates. As interest rates rise house prices will fall. Going from 5% to 7% interest on a mortgage will remove 23.9% of buying power. That means a $200k mortgage will now only buy about $152k for the same monthly payment. Paying cash this will help you a lot.

Things to find out about foreclosures.. This can and likely will affect all house prices.
http://www.trulia.com/blog/dan_chase/2010/03/foreclosures_th…

By the numbers does it make more sense for you to rent or buy? Realtor costs (when selling)and closing costs (when buying) add together take a lot of cash from you. One realtor said it was about 12% of the purchase price. It may be more or less.
http://www.trulia.com/blog/dan_chase/2010/01/does_it_make_mo…

Why renting could be the best decision even if buying appears cheaper. A very different way to look at things below.
http://www.trulia.com/blog/dan_chase/2010/02/why_rent_if_you…

A way to look at interest rates when deciding to buy a house. Consider everything inside including the opposing ideas in the comments.
http://www.trulia.com/blog/dan_chase/2010/01/do_low_interest…

A basic overview of the house buying process. SImple and easy to understand.
http://www.trulia.com/blog/dan_chase/2010/01/its_your_first_…


Not to be found elsewhere. Questions that if asked can help you to avoid problems you would not even think of before buying a house. This is based on problems I have come across or read about.
http://www.trulia.com/blog/dan_chase/2009/11/questions_i_wou…

Consider what the site below says.
http://www.housingpredictor.com/wisconsin.html
The downturn in Kenosha came after new subdivisions sprang up all over the community during the national real estate boom. The financial crisis stopped home builders in their tracts and they haven't recovered yet. The long protracted downturn has slowed the local economy as it impacts as much as 40% of related industries, including home construction, retail sales and lumber.

Wisconsin residents are hearty people, who have a passion for the love of their state's outdoors. The government may give the area a boost with extra stimulus packages as Kenosha is forecast to sustain average housing deflation of 5.8% through 2010.

The place to start for step one is to decide to you want to add a mortgage or just pay cash. If using a mortgage also see a lender. If cash only set your limit and include costs for inspections, appraisals (no need to pay to much), title search and insurance (a necessity), a CLUE report (insurance history of the property), paying the lawyer fees and to register the deed. (I may have left out a few things.)

Once you have a number in mind that you will buy up to that amount start to interview a few real estate agents. Then see what the story is in your area and when ready make offers (one at a time).
0 votes Thank Flag Link Mon Jul 5, 2010
First, you would need to figure out what sort of home you are looking for and in what neigjborhood. Meet with a local real estate agent who can guide you in the process. Work with an Accredited Buyer's Agent who will represent you and work fir your best interest. Please feel free to email me or call me with any questions.
0 votes Thank Flag Link Mon Jul 5, 2010
Start by researching on your own. There are so many online real estate resources these days.

Once you get an idea of what is out there and perhaps what price range, house specifics (how many beds/baths, how much property, how much square footage, neighborhood, etc.), then start interviewing agents. Your question is bound to attract a lot of agents who will tell you to contact them. Instead, interview as many agents in person as it takes until you feel comfortable with one who has the knowledge, personality, patience and an obvious interest in what you need/want. Do not settle or get pushed into anything that is uncomfortable for you.

All cash is great but leave room for other costs associated with buying a home (inspection and title search are important) as well as a comfortable cushion for the normal (and not always so normal) house expenses that crop up.
0 votes Thank Flag Link Mon Jul 5, 2010
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