vandresv, Home Buyer in Homestead, FL

What does it means when a house is listed as "only cash"? Is a loan from my bank, considered as cash? Thank you very much, Andres

Asked by vandresv, Homestead, FL Sat Mar 3, 2012

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6
Annette Law…, Agent, Palm Harbor, FL
Sun Mar 4, 2012
BEST ANSWER
Great Question Andres,
As you can read, "Cash Only" can mean ANYTHING!
It can mean:
1. Home owner wants to remove appriasal contingency.
2. Home onwer wants to remove inspection contingency.
3. Home owner wants to eliminate third part approvals from contingency
4. Home owner want a smooth closing without interference
5. Home owner want to close rapidly
6. Home owner wants to create negotiation advantage
7. I have a perfectly selleable condo in excellent condition and will pass any appraisal and inspection. It is cash only due to a recent roof replacement of all building in the complex. This $870,000 project was billed to the association at $900,000. Association refused to pay the $30,000 over billing and is working the suite through the court. Meanwhile the builder placed a lien on the entire association. A bank will not lend in such a situation.

By the way, it may mean the prefer cash, but may indeed accept bank financing with stipulations.
Let your real estate professional be your guide in situation like this.
Best of success in acquiring your new home.
Annette Lawrence
Broker/associate
ReMax Realtec Group
Palm Harbor, FL
727. 420. 4041
Web Reference:  http://www.MyDunedin.com
2 votes
Antonio Vega…, Agent, Saint Cloud, FL
Sat Mar 3, 2012
In my experience "only cash" means they are asking more than the house will appraise at, which will cause a loan denial unless you put the extra cash out of pocket. Most cash buyers don't have an appraisal contingency.

It could also be that it will not qualify due to the conditions of the property. This happens frequently with FHA loans.

Loans are not cash. Cash has to be proven as money already deposited on a bank account, that is over 30 days old and can be withdrawn at any time without a wait period.

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Tony Vega
Charles Rutenberg Realty
1 vote
Mott Marvin…, Agent, Sunny Isles Beach, FL
Sat Mar 3, 2012
Usually the all cash or CASH ONLY condition is to insure a fast closing and no mortgage approval/condition.

There are several possible reasons, some already mentioned.

WATERWAY REALTY, REALTORS
Miami Beach Real Estate Guy, FL
1 vote
Dan Tabit, Agent, Issaquah, WA
Sat Mar 3, 2012
Andres,
Chances are they are saying the house may not qualify for a loan. I the house has structural issues that would need correction before it could be safely lived in, you might look into a Rehab loan.
1 vote
vandresv, Home Buyer, Homestead, FL
Sun Mar 4, 2012
Thank you so much everybody. I have been using forums probably since they first appeared in the internet. I even used BBS long time ago. I have probably around 50-60 memberships in different websites. All that said, this is the most active and helpful site I've ever found
Thank you very much!!!!
0 votes
Ryan Moran, Agent, Naperville, IL
Sun Mar 4, 2012
Andres,

These are all great answers that hopefully gave you the info you were looking for. I have seen many bank owned properties that are considered to not be habitable due to the previous owner causing damage to the home. Sometimes it’s something as simple as missing appliances that will prevent a home buyer from obtaining a loan. As you can see from the answers you've received there are many different scenarios that could cause a deal to be cash only. Talk with your real estate agent and they should be able to give you more specific info.
0 votes
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