Profile picture for xxxperryxxx

Im coming into some money and I want to buy a home outright. Foreclosure? Short sale?

In what way can I use my current situation to the fullest advantage? I sold a home in Georgia that I owned outright, no mortgage. I'm getting a handsome check at the end of the month and I want to buy a house here in Phoenix. What kind of leverage do I have paying cash for a home? Will it be easier to get a foreclosure paying cash? Will it be quicker? How about short sale homes? Any leverage there? I appreciate any help on this topic.
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July 17 2010 - Glendale
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Answers (6)

Best Answer
Dear Perry:

Good question.

Cash always puts you in the "drivers seat".  Cash lets the seller know you are serious and can close quickly. Many buyers dance around and the seller does not feel comfortable with the offer due to buyer qualification issues or bank appraisal issues for buyers that have a low down payment.

Regarding short sale vs foreclosure? Short sales take time and often falll through when the seller and the bank cannot reach agreements. The banks often just foreclose if the seller is not responding or they do not like the offer prices that are coming in. Foreclosures on the other hand can close fast, sometimes very fast. Banks like cash. Make an offer when you have cash. The bbank may just say yes.

Feel free to contact me with any other questions.

Regards, Jeff
Jeff Masich, Realtor
Arizona Homes and Land
HomeSmart Realty, Scottsdale


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July 17 2010
Lucky you! On foreclosures, cash talks but so does the offer price. Most companies feel cash sales will close quicker. Definitely a quicker close than a short sale. The sooner they asset companies or lenders get them off their books, the better. As for short sales, you can find some great deals, they are many times in better condition because the seller in many circumstances is still living in the home and you're helping the seller out BUT it can be a very lengthy process. Glad to hear you are looking at purchasing either because the sooner the foreclosures and short sales are absorbed, the quicker our market will turn around.
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September 03 2010

I do not think that we know enought about your financial background or the amount of money you will be coming into to make any sensible recommendation.  Talk with a local realtor and a financial counselor, you can be more open with them.  Stay away from short sales, if you want to explore foreclosed properties presently bank owned, you may do OK.  Good luck! 

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July 19 2010
Profile picture for Mr Caveat
yeah leverage it up! woohoo, with the value of homes dropping, you can erode that money 5 times as fast! maybe lose it all!

maybe not, but be really careful with agents who like to play with your money that way.
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July 18 2010
Here's another train of thought. How about you buy several homes with that money you will be getting. Put 20% down on each home and finance the rest. Buy one home at a time and don't try to run before you walk. If you play your cards right, you could have several homes, each paying themselves off with the rent money.

If you do want to put all your money into 1 house. You will have more leverage with foreclosures than short sales. Your best bet will be to try to purchase a homes that needs work.
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July 17 2010
Cash is king.  You'll have more success and quicker results with foreclosures as opposed to short sales, but don't discount standard sales as many times their prices have been adjusted due to the market conditions and there is good value there.  Don't be afraid to be aggressive but reamain unemotional so you don't lose your negotiating edge.  Don't be surprised to find out that there are a lot of cash buyers in the marketplace looking for good value homes.  Keep working it and you will be rewarded.

Simon Mills
Mills Realty 
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July 17 2010
 
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