Bobstew, Home Buyer in Apache Junction, AZ

how long does it take to close on a home if you are paying cash? And what are the closing cost to be considered?

Asked by Bobstew, Apache Junction, AZ Sat Mar 24, 2012

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Bill Parker, CPA*’s answer
Hi Bobstew:

Two thoughts: One, the answers show that people answering questions out of their area do not take into account local customs. Arizona does not use attorneys for residential real estate transactions, so ignore those comments.

Two, why would one pay cash when there is five-year money to be had for less than 3% (with an even lower effective rate if you factor in the tax deductions)? I would think if you have enough money to pay cash for a home, then you have enough money to be working with a financial advisor who could help you get a higher rate of return on those funds fairly easily...Just a thought.
0 votes Thank Flag Link Sat Mar 24, 2012
told I don't have a income stream. retired. banks said even for a VA, FHA, conventional no go!!
Flag Mon Aug 25, 2014
The only real advantage a cash buyer has is the ability to close quickly and to remove any question of whether they can receive financing. Closing in two weeks is easily done.

For closing costs, you should exepct to pay an attorney or Titile company, recording fees, title insurance, homewoenrs insurance, if there's land with the property you should have a survey done, and even though your paying in cash, I would strongly advise you to have an appraisal done. Finally there are things such as home inspections, well and septic inspections if necessary, and insect inspections if necessary in your area. I don't know what the going rates are in AZ, but I've worked in more than one location over the years and without know the size of the house or lot, I'd suggest that you're looking at spending another couple of $2500+/- to handle the above.

Good Luck and Happy House Hunting.
1 vote Thank Flag Link Sat Mar 24, 2012
Even when paying cash, be diligent in the home buying process. Take necessary steps to make sure that you are covering everything, so that even if you make a short close, you have peace of mind that you have not missed something, that is usually needed for others who are not paying cash. If you are not familiar with any part of the process, get a realtor or real estate attorney to help you. the fees you pay for their services are invaluable when it comes to closing on any home, even paying cash.
0 votes Thank Flag Link Tue May 12, 2015
You can close in as little as a week if the seller is ready and the clising attorney can work that fast. Closing costs are usually teh fee to the closing attorney which could be 3-400 for a single family, the cost to record the deed, cost of transfer tax and any prorated hioa fees or property taxes.
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0 votes Thank Flag Link Sat Mar 24, 2012
It depends. One week is about the minimum if title work and HOA disclosures are complete. In Arizona, an HOA has up to 14 days to provide their report, disclosures and fees to the buyer. Typically it does not take quite that long. Generally speaking I write 20 days on the contract and if we can get all the inspections, documents and disclosures in place more quickly, then we can close earlier. As for cost, I generally use 1% of the cost of the home as a high-side estimate. However, there may also be negotiating fees, back taxes or HOA fees to include for certain types of sales.
0 votes Thank Flag Link Sat Mar 24, 2012
I have had cash buyers close in 1 week. They only inspected the building to speed things up but the home was priced just right and they wanted to make it appealing to the owner to sell fast. I would recommend getting ALL necessary inspections, appraisals, and surveys done before purchasing though just to be safe.
0 votes Thank Flag Link Sat Mar 24, 2012
A cash buyer, if they want to, can close within a week or two. It's a matter of how fast can you get the title search and inspections done. The closing costs are pretty much the same but without the bank fees. Generally closing costs are between 2-4 % of the purchase price so I would imagine for a cash buyer it would come in closer to the low number there. You still need a survey, a home inspection, a title search and probably an attorney to close the deal.
0 votes Thank Flag Link Sat Mar 24, 2012
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