What Does the Term CASH ONLY Mean When Buying Real Estate?
What Does CASH ONLY Mean?
Let me preface this article with the following:
A buyer may want to purchase with CASH ONLY.
NOTE: This is NOT the same thing as having a property term of CASH ONLY.
Today I received the following email inquiry:
I am interested in this property. What do you mean “cash only”? Would you accept a large% down payment and the balance upon financing? Or, is it possible to pay cash and then re-finance????
First: I don’t mean anything since I’m NOT the listing agent. As stated throughout BUYERS AGENT PORTLAND website, my brokerage is an EXCLUSIVE BUYERS AGENCY.
Exclusive Buyers Agents represent BUYERS ONLY — and don’t take listings or otherwise represent the seller. An EBA office is 100% Buyer Fiduciary.
So the term “CASH ONLY” in a listing sheet comes from the listing agent, not an Exclusive Buyers Agent.
Related Article: Working Wih An Exclusive Buyers Agent
Second: Two questions aren’t real estate related at all. They are, however, FINANCING related.
1.) A large% down payment and the balance upon financing?
2.) Or, is it possible to pay cash and then re-finance?
Since real estate agents are not licensed loan originators, they do not qualify or pre-approve borrowers.
Only a lender could answer questions about financing: 1.) finance the balance, and then 2.) re-finance.
The lender is the one who would be looking at the borrowers ability to obtain a mortgage. I do have some excellent lenders I refer, but in this particular listing . . . it wouldn’t really matter.
Because . . .
CASH ONLY MEANS . . . CASH ONLY
When a listing agent lists a property FOR SALE they will indicate ALL the TERMS which the property may be purchased.
If it were legal, the listing agent would include “First born male child” as a term — trust me!
So any (legal) terms to get that house sold will be mentioned by the listing agent.
The MORE terms . . . the MORE options for the buyer.
If the property is a CASH ONLY* purchase, and there are no other terms mentioned or accepted it means only one thing: The property WILL NOT FINANCE.
Lenders who are legit, not loan sharks, will not loan funds on a property in need of SO MUCH REPAIR that only CASH TERMS would be acceptable. And real estate agents* who list a property requiring MUCH REPAIR will only use: CASH ONLY as the term — since they know the property will not finance.
What Buyers Need to Know About CASH ONLY Terms
- Buyers may not be able to “borrow” money from a lender to buy CASH ONLY property
- Buyers will need CASH to buy the property
- Buyers will need CASH to re-hab the property
- The property WILL NOT be able to get lender financing.
- The property WILL NOT pass appraisal in its current condition for a loan
- Property, more than likely has back taxes due, or other encumbrances and can not get title insurance
- The property is, more than likely, INHABITABLE in current conditions.
- One or more major components are missing, damaged, and/or in need of repair:
- Flooring gone, or urine soaked by pet
- Sub floor damaged
- Missing heater/furnace
- Roof about to cave in
- Dry rot
- Broken windows, door, walls, ceilings
- Interior water damage from roof
- Roof damaged
- Siding damage
- Rain gutters rusted or missing
- No appliances
- Plumbing broken, and in the case of cooper, probably missing
- Electrical still on fuses
CASH ONLY MEANS . . .
. . .Please have plenty of it available to cure all the deficiencies and bring the property back to livable/habitable conditions
* Real Estate VARIES. In the Portland Metro market, CASH ONLY means one thing: A non-financable / hard to finance property that requires MORE than just some minor TLC
Buyers Agent Portland – Buyer Focused ~~ Buyer Results
Buyers Agent Portland, LLC is an Exclusive Buyer Agency serving the Portland Metro real estate market since 1999. The brokerage only represents Home Buyers and never home sellers. If you’re looking for a home anywhere in the Portland Metro area, there is no better representation than an Exclusive Buyers Agent. We assist investors, folks relocating to Portland area, those moving to Portland in-state, home buyers who are looking to down-size or move-up and of course . . . love working with first-time buyers. I help Buyers in the Portland Metro market find exactly what they need in the Tri-County markets of Clackamas County, Multnomah County and Washington County, as well Portland cities including but not limited to:
- Beaverton homes for sale
- Tigard homes for sale
- Hillsboro homes for sale
- Lake Oswego homes for sale
- Portland homes for sale
When you’re ready, talk to an Exclusive Buyers Agent.
Exclusive Buyers Agents do not work at real estate brokerages that take listings!
An EBA’s fiduciary duty is: 100% BUYER REPRESENTATION . . . 100% of the Time.
Carla Muss-Jacobs, ABR, CEBA, e-PRO, Realtor
Buyers Agent Portland LLC
Buyers Agent Portland ~~ 100% BUYER REPRESENTATION . . . 100% of the Time