Thread: Cash offers only

(1) you need to have the available cash...more than likely you have to show a bank/investment statement that the funds are available.

With financing you may have to have an appraisal and inspection done.

Thanks,

If I do plan to finance, then I need to arrange all that prior to submitting the bid.

Financing depends on inspection result and appraisal results. I am just curious for a house in such condition, is it even possible to appraise? In any event, I do have the cash available to pay it all up front if the deal is right.

But what I am concerned with is property taxes. If the county is still setting it's value at 800K+ and we pay say 300K cash for it now, will the county lower it's just market value to reflect the new price or we will still be paying an inflated property tax? I think I will call the county property appraiser to ask this, but I thought I would see if anyone has comments here.

I can't speak for where you are... however, in Ohio county auditors are apt to reduce the valuation if the home is acquired for a lower price. It's not automatic - you must follow their procedures to contest the valuation - but most of the time they'll reduce the valuation following a sale.

The documentation you'll likely need to provide:

• Pictures of the home - interior and exterior - showing its substandard condition. Get close-ups of major defects - like rotting trim, any signs of mold, HVAC problems, foundation cracks, roof damage or leakage
• Any comparable sales in the area - similar features, age, square footage - that indicate a drop in value. These can be provided by a Realtor or (preferably) an appraiser
• A professional appraisal is more difficult for the review board to argue with. It may well be worth your investment to obtain one

Good luck!

Usually when a bank says "cash only" it is because there is something wrong with the house making it unavailable for a conventional loan.

Have you seen the house and is there anything wrong with it?

Here is Minnesota, so many of the various homes for sale on MLS do require "cash only offers." This does mean the the buyer has to show proof of funds in a bank statement, checking account, etc. In MN, there are no real exceptions to this rule that I am aware of.

I hope this information helps out!

Originally Posted by Greg

Usually when a bank says "cash only" it is because there is something wrong with the house making it unavailable for a conventional loan.

Have you seen the house and is there anything wrong with it?

Hi Greg. Is there any possibility that it's not the house but the bank has something to do with previous transactions? Any defaulter issue?

Originally Posted by miamicuse

I am considering a bank owned property and the bank is asking "CASH OFFERS ONLY MUST HAVE PROOF OF FUNDS"...

Does cash offer means:

(1) I need to have the cash needed to purchased the home outright when I submit the offer; or

(2) I need to submit the offer without a financing contingency but they could care less how you got the money.

It seems it is the former case if they are looking for proof of funds?

Is there any way that would allow me to arrange financing for such a property and still be able to satisfy the "cash offers only" clause?

Thanks,

MC

Are you trying to do this transaction on your own without professional representation?

Get professional advise, then follow it.

I advice you to check the home condition and get a professional hired to do this transaction.

Cash offer could come from several sources but you have to show proof of it's availability. It could be the bank account, credit card, equity line, IRA or other retirement fund (sometimes this is not acceptable, it varies from client to client). Also note, most clients are now requiring the POF to be dated within 30 days of your offer.