Every once in a while I see some Grants Pass real estate listed for sale for CASH ONLY and wonder why someone would restrict the buyers that look at the home. A common variation of this is saying the “home will not finance”. So should you ever sell your home with this wording? What if you see one that you want to buy? How do you proceed, without the cash?
First of all, let me recommend that you NEVER put your home on the market for “cash only”.
Secondly, if you want to buy a home – disregard the financing section of the listing.
Far too often, the person selling (or listing) the home does not know enough about financing to make that call. This includes the banks that are selling foreclosures in major disrepair. Just because they won’t finance it doesn’t mean it won’t finance.
Every home can be financed. Regardless of condition.
That’s right. Every home. Now the question is; will the terms be acceptable? Let me give a couple examples:
Homes in any condition can be financed with private money. There are down payment requirements and higher interest rates. But usually someone can get about 60% of what the home is worth. Contractors will commonly use this method to “flip” a home.
- Rehabilitation loans can be done on almost any home also. These offer much better interest rates and less money down than private money loans. A great option for the perfect home that need remodeling. One of the most common forms of rehabilitation loans is the FHA 203k loan.
Don’t restrict who looks at the home, but rather find solutions to make more buyers see your property. Help them find a solution to financing the home. If you place “Cash Only” on the listing, you are only scaring away possible buyers.
If you are considering selling your home, give me a call. I would love to show you the difference a good Real Estate Agent can make.
David Prulhiere can be reached at 541-218-5778. He has been in the real estate industry in Grants Pass since 1998.