Still: Forego the inspection? Think long and hard before you do that. Sure, your offer is stronger without it. But I've heard plenty of horror stories about people who skipped the inspection, only to find some really major problems.
Also: A blanket piece of advice to offer above the asking price? Bad advice. What if the asking price is 15% above fair market value? Especially if you pay all cash and there's no appraisal, you could easily overpay. There's nothing wrong with paying fair market value. But that's NOT the same thing as the asking price.
Next: Talk to your financial advisor. Yes, there are pros and cons of buying with cash, taking into consideration the low interest rates. But there are some things you didn't mention. OK: You've got $200,000 in cash. Great. However, you need a cash cushion, too. Many advisors suggest at least 9 months-1 year of living expenses. Further, do you have any expenses coming up? Anything from having a child to going to school? Do you have the income or cash to pay the condo fees? Might YOU want to move in a year or so? These are things that would affect your decision to pay all cash.
Finally: Your purchase is NOT an investment. It's a nice thing you're doing. But it's not an investment. In fact, check with a financial advisor on the tax implications. If your mom isn't going to be paying you rent, the IRS may "impute" a fair market rent. In other words, it'll say: "Even though this person isn't collecting rent, we know that rents in the area are $1,000 a month. So we will treat her as if she's getting $1,000 a month in rent." If you pay all cash--and I'm not a financial advisor so this isn't financial advice--you may actually end up with a bunch of tax owing based on the imputed income.
Keep in mind, too, that property values don't always go up. Remember 2004 and 2005? Very hot markets. Remember 2007 and 2008? Huge price declines. Never pay top dollar in a rising market and assume that you'll see appreciation.
I recognize that there are personal and emotional reasons for the purchase. And that's fine. But within that framework, there are still things to consider and steps to take to protect yourself and your mom.
Hope that helps.
Is there anything I can do to stand out more? Even if I am a bit lowr? A standard 7 day inspection with 21 day close? If that is reduced, does that look more appealing?
I'm working with Buyers who can finance 50 % of the purchase and capable of going much higher in price if need be and we've encountered situations where Sellers selected cash offers instead.
Several factors may be in play, such as Sellers wanted a much faster close, no loan and appraisal contingencies or some complexes may not have sufficient reserves, higher HOA delinquency rate or the owner occupancy % vs the tenant occupancy % does not meet the lending requirements.
Cash will get you in and if in need of cash down the road most lenders will refi after 1 year of ownership.
Research and information gives you the edge in making a decision which way to purchase.
Best of luck.
I believe that having cash in the bank is always your best line of defense.
This is a great idea to purchase instead of paying rent (which is helping the landlord purhcase his home)
You can qualify for a owner occupied loan with mom as the occupant as she is your parent and you want to provide her with shelter.
Explore different financing ideas.
Some might think that getting a mortgage enables you to free up your principal to invest...
There are pros and cons to each...so as the others have suggested...do your homework!
Best of luck.
I think you will see that most financial planners will say that now is a great time to buy. Buying with cash is also a good idea. You generally get a better price than with a mortgage. However, if you buy with a mortgage and inflation comes in the next few years, the money you borrowed will basically be at a discount.
I would suggest talking to a financial planner. You can work out several scenarios that will help you make a choice that is right for you. A big factor in the decision is the HOA assessment as well as the age and maintenance required for any property. This is because the money you save by buying all cash could easily be wiped out by remodeling or a high HOA.
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Interest rates are low so financing make spence as well, however if you buy in cash you will always have an option to refinance at a later time.
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