Home Buying in Mesa>Question Details

livi042254, Home Buyer in Mesa, AZ

Why would a property be advertized as needig or wanting a cash buyer?

Asked by livi042254, Mesa, AZ Fri Feb 1, 2013

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This question was asked from this property: http://=www.trulia.com/property/3094736481-7263-E-Medina-Ave-Mesa-A… target="_blank" rel="nofollow">http://www.trulia.com/property/3094736481-7263-E-Medina-Ave-…

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This particular property is in a Pending status as of now. But the public comments stated they were hoping for a cash buyer as most sellers do. The new financing avavilable stated they would consider fha,va, and conventional loans. Someties listings may be listed as cash or conventional only due to the reasons the other agents have exclaimed. I have had scenerio's were they were listed as only cash or conventional and the homes were more than suitable for fha or va, and procured a contract based on visual inspection of the home. The big reason for cash only transactions, is normally the buyers/sellers could avoid appraisal and less required repairs from fha,va, and conventional appraisers. As well as cash closing quicker than a loan that could take 3wks-45 days depending. please call if any questions 480-248-4309 Bob Knapp eail: bobtherealtoraz@cox.net
0 votes Thank Flag Link Wed Feb 13, 2013
There are many reasons why a seller may decide to ask for a cash buyer. In this case, the house needs repairs and, in the opinion of the owner and/or listing agent, it would not qualify for financing.

They listed the repairs needed in a semi-private field in the listing. Unfortunately I can't post it here as this is a public forum. If you are curious about the repairs needed, just give me a call and I will be glad to share them with you.

By the way, the house is currently under contract.

And if you are looking to buy in that area, here is a list of houses for sale in this zip code:

http://www.myfirsthouseaz.com/index.php?filter=all&CheckedZips[…

I hope this helps.

Jose Dias, REALTOR
(623) 418-5700
Jose@MyFirstHouseAZ.com

http://www.MyFirstHouseAZ.com
0 votes Thank Flag Link Fri Feb 1, 2013
Sometimes the property itself will not qualify for financing because of its condition,eg., the amount of repairs required to make the home safe, secure or sanitary or otherwise habitable.
0 votes Thank Flag Link Fri Feb 1, 2013
I second everything my colleagues have already mentioned. A Seller may advertise a property seeking a cash buyer for any of the following reasons:

1. The home may not appraise at the sales price, hence a buyer using financing would either have to come-up with the difference or ask the Seller to reduce the price to the appraised value.

2. The home may not pass a home inspection or minimal lender requirements (i.e. FHA, VA). In some situations the Seller does not want to do repairs, in this instance it is a Short Sale so the Seller can't make any repairs and the bank won't.

3. The Seller needs a fast closing. This can be because the Seller is relocating or, in the case of a Short Sale, there may not be enough time before the home is scheduled for Trustee Sale.

Cash purchases do not require an appraisal or inspection and can close in as fast as 3 weeks.

Amy O'Rear, REALTOR®
Direct: 480.664.9950
Mobile: 480.580.1221
Office/Fax: 602.503.4280

HomeSmart International
2680 S. Val Vista Dr, Suite 101
Gilbert, AZ 85295

Website: http://www.amyorear.com
http://www.facebook.com/amy.orear.realtor
___________________________________________
0 votes Thank Flag Link Fri Feb 1, 2013
I looked up the home and can offer a little more specifics if you give me a call. It's actually quite interesting. Or you can view some of those specifics here:

http://phoenixhomesbyray.com/7263-e-medina-avenue-mesa-az-85…




Ray Teerlink
480-382-1199
0 votes Thank Flag Link Fri Feb 1, 2013
A home would be advertised as needing a cash only buyerMost likely it would not pass a home inspection or FHA inspection therefore the loan would not be approved. Another reason is that the appraisal required by Lenders to insure the current market value of the home may not meet or exceed at least the minimum of the listed price. Therefore again it would not qualify for financing.

Sincerely,

Kelley M. Crum, Realtor ®, ABR, ePRO, SFR, CNE, RSD, CBS
"Accredited Buyer's Representative" ABR
"Short Sales & Foreclosure Resource" National Assoc of Realtors SFR Certification
"Certified Negotiation Expert" CNE
Harris Real Estate University's RSD "Certified REO Specialist"
Harris Real Estate University's CBS "Certified BPO Specialist"
slogo: "Fulfilling the Homeownership Dream"
mobile: 480-586-5051
email: kelley@kelleycrum.com WEST USA REALTY
eFAX: 480-237-9437 1640 S Stapley Dr
Office: 480-820-3333 Suite # 124
Website: http://www.kelleycrum.com Mesa, AZ 85204
0 votes Thank Flag Link Fri Feb 1, 2013
The condition of the home may not be such that it would pass an appraisal for a conventional or FHA buyer. Also, some sellers just want a cash buyer so the transaction will close faster.
0 votes Thank Flag Link Fri Feb 1, 2013
This property has an accepted offer as of 9/12/12 but is still showing active because it's a short sale and they are most likely waiting on (short sale) lender approval and are accepting backups.

The property has some issues such as roof leak, fascia repairs needed, slow draining tub in hall bath, needs paint & carpet. Seller can make NO REPAIRS.

They probably prefer a cash buyer because of repairs. It may not appraise for a buyer getting financing or may not qualify for an FHA or VA loan due to "repair" issues.

There are investor cash buyers that can get it closed quickly and have no "contingency" issues such as inspections, loans, appraisals that a buyer getting financing would have.

Hope this helps. :)
0 votes Thank Flag Link Fri Feb 1, 2013
Cash offers are desirable in a few situations:

1. Seller needs a fast Close of Escrow (Sale)

2. The property has something that would make it hard or impossible to get a loan. Major repairs would be an example.

With the right lender we can close pretty fast and sometimes overcome that one.
0 votes Thank Flag Link Fri Feb 1, 2013
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