Buying a property all cash, what to look out for?

[Gurjot Grewal]

Hey BP, when buying all cash is there anything I should be looking out for? Money will go to the sellers title agency. This is for a buy and hold that I will get delayed financing on. 

-any tips for verifying title is legitimate? Is a phone call typically enough for you? 

-Ill need to get title and home insurance. Anything else?

-Should I bother with an appraisal if I believe Im buying below market based on comps. 

Anything else I should get or look out for? Thanks!

[Dustin Allen]

@Gurjot Grewal

You should be looking for the exact same things that you would look for when using financing. The appraisal is less of an issue as that is to give the lender a third party opinion that they aren’t lending too much on a property. Obviously, if you overpay by a lot, you may have issues when the appraisal is done for your financing later.

You will still want to have inspections or at least a good sense of the condition of the property. This could be done by walking the property with your contractor or hiring an inspector if your contract allows an inspection period.

A standard contract should cover the fact that the seller needs to be able to pass clear title to you as a condition of closing. This should all be handled by the title company according to your contract.

Everything always comes back to the contract. What are you and the seller agreeing to in the contract? That’s where the bulk of the negotiations should be happening.