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????
This is a FINANCING Question . . . real estate related, but it’s FINANCING.
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
- Some 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
Buyer Focused ~~ Buyer Results CALL 503.804.1466
Anne Stewart-Principal Broker, operates an elite team of real estate professionals designed to focus on Buyer Representation
Resulting in superior customer care and exemplary client services.
Moving to Portland and need to get acclimated? Want to see a home that checks all the boxes? Our level of Buyer Agency and Buyer Representation is what you need in a real estate professional! We help you navigate the home buying process step-by-step with care, attention to detail and professionalism that is not easily found in the real estate industry.
Having an agent that focuses on fiduciary vs functionary representation is a game changer in buying real estate. ~ Anne Stewart
Helping home Buyers in the following counties: Multnomah, Washington, Clackamas, Yamhill and Marion
The Quinn Stewart Real Estate Group at Keller Williams Realty Portland Premiere are a team of experts in buyer representation. And that’s what you want!
We are here to represent your best interests in the purchase of real estate. Relocation, Residential, new construction, Land/Lots, condos/townhomes, Move up/Move down,
Since 2001, our team has over six decades of combined experience. Have a real estate agent whose real estate practice has PROVEN RESULTS!
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Quinn Stewart Real Estate Group