Home Buying in Portland>Question Details

Pdxer09, Home Buyer in Portland, OR

I am a first home buyer I am looking into buying a condo in Portland OR paying cash, the condo is priced at 60000, owned by the bank. Any Advice?

Asked by Pdxer09, Portland, OR Sat Sep 26, 2009

I am a first home buyer I am looking into buying a condo in Portland paying cash, the condo is priced at 60000, owned by the bank but is not short sale? Do I save money paying cash? If I am paying cash what fees are involved in the buying process and what should I know. Any advice appreciated

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So first thing is first, is the condo listed? If so it's best you work with an agent to represent you. You will save money by not getting a loan in fees. Usually it's 3-6% of the sales price in fees plus the cost of the condo to close. Don't forget about taxes & insurance as well as your HOA's. If you purchase with cash your fees will be less than $1500. You will be responsible for those other items (taxes, insurance, HOA's) but you will not be required to prepay them.

This is where your agent comes in handy. They know these things and can guide you and negotiate for you on your best interest.
0 votes Thank Flag Link Mon Sep 28, 2009

Any attempt to obtain this or similar properties would be greatly enhanced by using the skills of a real estate professional.

Even though banks love cash deals, any possible savings would likely come from negotiating your transaction. By working directly with the bank you will be working with their realtor directly....don't expect them to buck the system on your behalf.

Good luck
0 votes Thank Flag Link Sun Sep 27, 2009
When you pay cash it isn't any different than getting a loan which would also cash out the seller. However, what might help your offer is to shorten a closing time, and make sure you are pre-approved. Buying a foreclosure or short sale takes a tremendous amount of patience. As already recommended, make sure you do a full home inspection, PLUS a sewer scope, roof inspection and furnace inspection. I don't know which bank is involved, but some will pay for repairs and/or concessions. You will have minimal closing costs if you pay cash versus had you taken out a loan. What's typical for a cash transaction are a title insurance report, recording fees, you may owe property taxes (we pay back 6 months and forward 6 months), HOA or condos dues (usually they will collect a year upfront), homeowner's insurance, escrow fee, etc. You will also have to pay for all inspections and any/all repairs if not done by the bank. If you call the titlei company you are closing with, you can ask them for a preliminary closing cost estimate. Lastly, hire a Realtor as a buyer's agent to represent you. Banks are paying commissions to selling agents (your buyer's agent). Ask this bank if they will do the same. All the best but you best hurry in order to get the First Time Home Buyer's Tax Credit --- must close by November 30th.

Betty Jung, Broker, RE/MAX equity group, inc.

Web Reference: http://www.bettyjung.com
0 votes Thank Flag Link Sun Sep 27, 2009
My recommendation: Inspection.
0 votes Thank Flag Link Sat Sep 26, 2009
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