Thursday, December 27, 2012

Home Buyer Tips - If it is a cash deal, why waste money with an inspection?

Cash is good.  Money does talk.

The ability to pay cash for a house or condo gives a buyer options.  Depending on the property it may even provide leverage in the price and negotiation process. 

A cash transaction can close very quickly on Florida.

Still, even if you can pay cash, there are some things you should not skip in the purchase process just because it is not required.   Things like these steps....
  • Property Inspection.  Remember this home buyer rule - Just because the seller says the home is in good shape, does not make it so.   A home inspectors tell the buyer the current state of the property.
  • Appraisal.  Even if you are paying cash I believe an appraisal be a condition of the sale.  If a home will not appraise the bank will not lend the money?
  • Survey.  Regardless of how long a seller has been the owner it is wise to know where your property line really sits.  Yep, that fence may have been sitting there for years but does that make it the border?
  • Termite Inspection.  Again, common sense.  This is probably the least expensive of all these items!
  • Finances.  Study the association finances. Know how many owners are delinquent in their dues.  Find out about the reserves and planned major capital projects.
  • Association Documents.  Again, you are required to receive these documents and offered an opportunity to review the documents.  Do it.  Consult an attorney if you have questions. Do not rely on an Association Board member or your future neighbor to interpret the documents.  Your real estate agent is not an expert on association rules.

Unfortunately, because most of the above are optional in a cash transaction some may be tempted to forgo some of the most critical steps in the home buying process.