Buying a home typically means going over your financing options with your realtor then finding homes that are in your price range. For those who have saved cash and wish to purchase their home by writing a check, things will go a bit differently. Finding a realtor will always make your home search easier, but you will need to both be on the same page. If you want to find the home of your dreams and your bank account, there are a few things that you will walk to go over with your realtor to find a successful cash purchase.
Looking for a cash house may mean a little more negotiation than usual. If you have a specific amount to spend on a home, going over that in cash is often not possible. Talk to your realtor about negotiation techniques as well as your standing in the current real estate market. The realtor will be able to let you know just how much of a bargaining chip your cash offer will be. In some markets, sellers prefer a slightly lower cash offer over a financed purchase offer.
Home work needs
Depending on your budget and area, cash houses may be in excellent condition or they may be in distressed condition and need some elbow work before you move in. Your realtor will have the information on hand to help you determine where homes in your budget are likely to sit on the appearance and habitability scale. If the homes in your cash offer arena need some help, you should consider a loan for home makeovers or you should ask a contractor the time range and price range for fixing homes that you are interested in purchasing.
Growth potential for homes
Buying a home means that you do not have to pay a mortgage every month. This opens up your income to be able to invest in either fixing up the home or building other investments. If you are purchasing a home as an investment, you should ask your realtor about the growth potential for the homes in your cash budget. Purchase the home that has the highest potential for growth in a sought after area in order to make sure that your expensive investment benefits you in the end. A home that does not have increased worth potential means a stagnant investment. If you intend to sell your home at any point, make sure that the homes you may put your cash into have potential via the realtor's research.