If you are referring a friend from CA to buying in FL, realize FL is a transactional brokerage state with zero signed disclosure requirements or discussion about agency law, what they can and can't do. It is presumed the public is aware of transactional brokerage, TB is the default agency model. TB is like ministerial acts with a confidentiality pledge. The FL agent job is to facilitate the transaction, not represent the buyer, no advice, advocacy or fiduciary care typical in designated and exclusive agency representation.
To your question Kim sometimes a cash sale can facilitate a transaction quicker and for less money because there is no bank to approve or disapprove of condition of home or the abiltiy of buyer to pay back the loan.Most often we see this with Investors and often these are in distress sales where homes would not meet standards of traditional loans. In distress sales a bank might decide to take a lower cash offer than one that involves financing and contingencies that would slow the process down or make it less profitable.
Obviously , I would always suggest consulting with a financial adviser but it seems with interest rates at historically low rates, all things being equal, perhaps the best way to go would be to make a hefty downpayment in hopes of getting the lowest possible rate and then save your cash for unexpected situations. This is kind of a one shoe does not fit all situation. A really good agent will suggest many options for you and most often Mortgage Brokers can help you decide which is the best financial direction to go in.....
Cash is less expensive than a mortgage. A $100,000 house will cost $175,000 over the life of the loan, plus closing costs.
You can close in 2 weeks with cash, a mortgage can take 60 days.
If a property needs a lot of repairs, it is harder to find financing, and then cash is king.
Hope that helps!
I recently bid on a foreclosed home that had 3 bids and sold for over the asking price. It is spring, and homes here are starting to move especially the more desireable neighborhoods in good school districts. I have over about 35 years of experience in Florida Real Estate and am happy to share my knowledge and experience with my clients, woudl love to help. Visit my website at http://www.pensacola-gulfbreezehomes.com for more info about me and to search for homes.
A Buyer's greatest asset will be their professional Realtor, acting as their Buyer's Agent, who will be able to advise them on the current values of the types of homes they are considering in the areas in which they are shopping.
You hire an agent to represent you. Call around and interview a few, then select one to work with whom you feel will best be able to provide you with the information and expertise that you need.
If I can help you further, please don't hesitate to call, text or email.
Broker, Tartan Properties
As a transplant to Pensacola I understand what your friend is going through. If I may be of any help in making the transition easier please feel free to e-mail me at email@example.com or call 850-293-9953.
P.S. I think your friend will love Pensacola. It's a great place to live.
It doesn't really matter whether it's cash or financed to the seller in most case & the price that's stated is generally not the final selling price. The prospective buyer makes an offer and sometimes the negotiation goes back and forth for a while. A Realtor can explain all of this. Unless the buyer's credit score is too low to get financing, with rates as low as they are, It's actually foolish in most cases to pay cash even if you had it. I'd be happy to explain that to the "interested buyer" if they wanted me to.
- W. Ted Brown - Realtor
DEAD EQUITY!!!=====DEAD EQUITY!!! ====== DEAD EQUITY!!!
With tax deductible interest rates in the 2% range on some programs, why not finance a portion?
If you can show the seller you can pay cash, but prefer to finance, you can still get the cash price, without the Dead Equity!
See the blow programs, pick two and call me to go over payments and out of pocket.
1) 100% LTV- VA / (VA Jumbo @ lower ltv)
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4) 97% LTV- No monthly MI-No FHA 1.75% Fee
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--------STATED INCOME ALT up to Super Jumbo-----------
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Go to: http://WWW.PRO-OPTION-COM or call 888-662-4404
Pro Option Mortgage/ Florida
Prior Service U.S. Marine Corps