There are times where buying in cash will give you a significant advantage over others on the market. Cash buyers are much less risk, as they can close immediately and do not have any money issues similar to those who have to finance. Another benefit is that cash buyers can close on any home they like and do not have to wait for the bank to appraise and approve of the property. If you plan to purchase a condo with cash, you have many benefits, including getting a good deal. Here are three things that you need to do prior to closing on your cash condo to make sure the deal is solid.
Find out why you can't use financing
If the seller of the condominium was looking for a cash only buyer, you should consider why they are only allowing a cash purchase. Some condominiums may not be in the proper condition to receive financing. Others may not meet the owner to renter ratio that some banks are looking for when allowing a traditional mortgage. Find out the reason for the cash stipulation so that you are prepared to make any changes that you may need, especially if they have to do with the structure of the building.
Determine the health and standing of the condo association
Most condominiums have or will have a condo association. With a condo association, there are rules, regulations, and condo fees that will be owed. Have your real estate agent help you determine the health of the condo association and if they are known for raising fees heavily or if they have been having monetary or legal issues. Also make sure the condo owner is in good standing with their fees, as a lien can be placed by a condo association if fees are not properly paid.
Figure out the immediate equity
If you are interested in closing on a condo and you buy the home in cash, you should have instant equity in the home. With your real estate agent, calculate just how much the home is worth and find out what equity you will have in the home. This can help if you are interested in renovating the home prior to moving in and you wish to take out a loan to get this performed. Knowing what equity you have in the home can also give you money for further investments, which can provide you with a vehicle to making more money.
For more information, contact local professionals like Danny the House Buyer.Share