An all-cash deal with a quick close can be quite attractive to a seller, which can give you some great negotiation power, especially for a home that's been on the market for a while.

Sat Feb 23 2008, 22:04

Congratulations on being a first time buyer on top of being a cash buyer. That is awesome! I wish I had been that prepared for my first home purchase. With this investment, you will see your net worth continue to go up as the home appreciates over time. I actually am in the process of helping someone purchase a home in Smyrna too. I think it's a great area.

As it has been said, there are a few things the bank requires that you are not obligated to do. The good thing about an appraisal is that it helps protect you from overpaying for the house. So if you choose not to have it performed, make sure you're working with a good realtor who knows the comparable properties in that area and can assess the home's condition, etc. to determine its market value. They will be able to help you make sure you do not pay more for the home than what it is worth. The seller is responsible for your buyer agent's fee, so it can't hurt to have that extra protection.

No one will be telling you they need proof of your homeowner's insurance, but you definitely do not want to be without it! So once you have a contract on the house, get quotes from some of the local insurance companies and make sure you have it before you close.

No matter what, definitely have a home inspection performed and make the contract contingent upon it. That will cost you anywhere between $250 and $400 depending on the house, etc. It will be money well spent as you hire the inspector to find every single little thing that is wrong with the house. If major issues arise, with that contingency, you can decide to walk away if you have structural issues, etc. There will always be cosmetic and minor things in the inspection report, so be prepared for that at a minimum even if it's a brand new home.

You will also need to provide proof of funds to the seller when you make an offer on the house. For people with mortgages that would be in the form of a preapproval letter. For you, you'll just provide a copy of a bank or other statement showing the funds. You can, of course, use a sharpie or something to cross out information you wouldn't want them to have (account number, etc.). Or you could have the bank write a letter stating you have the funds to cover the purchase amount, which might be easier.

There are a lot of other little things to know along the way, but if you have any additional questions, feel free to give me a call.

Wed Feb 20 2008, 20:57

MEB

First thing is that you are in a good position, but it is all cash to the seller anyway. You having cash, simply helps speed up the process and helps you get it done faster. Sometimes that is a great negotiating point.

As for you providing the cash yourself, you do prevent one thing, the bank looking over your shoulder. Now, while that sounds pretty EVIL and "Big Brother-ish" it can be a good thing too. You see, the Bank looking over the transaction forces you to spend money on things that you don't need, (but should have anyway) like an appraisal, an inspection, and a survey. Cash deals can go forward without these items. I don't recommend it and I always get all of these when I buy a property. Just make sure that you have a good REALTOR on your side and that you have a good checklist. I can provide you with one that I give my office staff on property purchase side it you would like. Just click my website and send me an email.

Good luck and go get your house!!!

Gary De Pury
Broker Owner
Bay Vista Realty
Director, Florida Association of REALTORS®
Chairman, Communications Committee

Wed Feb 20 2008, 11:29

Dear Meb,
Congratulations on buying your first home. First thing to remember it's an investment so make a wise decision. There lots of litte details that you need to know in a home purchase. Get a Real Estate agent that would best represent you. A buyers agent preferably. You need advice, your need someone who knows the market, you need an agent that wiil represent your best interests. Best of Luck to you.

Wed Feb 20 2008, 11:09

Get a buyers agent to represent you. Ask around and find the best agent in the area, then contact them. A buyers agent represents you, and your best interest. Usually the buyers agent's commission is paid from the sellers side, so it shouldn't cost you. Then sit down with them, and go over what is important to you.

Best of Luck!

Wed Feb 20 2008, 10:34

Pretty much the same things as if you were getting a loan ,the home inspection,appraisal,property disclosures,the title report,the title company , you can always hire a Realtor to represent your interests the agent that represents the seller does just that ,they work for the seller anything you say goes back to the seller not limited to anything if you say you are paying cash they will know that and it can limit the amount they may be willing to reduce the price by . Most buyers think paying cash will get more buying power,most sellers see deep pockets.

Wed Feb 20 2008, 10:27