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Question
"House for cash" legal issues?
We have to unload our house as I have been transferred to another country and we don't want the hassle of renting. The real estate market is just awful and we're not even getting any showings because the McHouse developers all around are slashing their prices by 50-100K. We lowered our price twice and still nothing, so we're thinking of just taking the "House for cash" hit and move on with life. Now, I've read about the weasel-y mortgage tactics some of them apply so we're obviously looking for a big bag o' dough upon closing so we can pay off our mortgage and pocket what little profit remains. We're not paying any dummy "appraisal fees" or such either. Now, since I don't have a seller's agent by my side, are there any legal "gotchas" in a cash sale I should watch for? As I said, I tried listing it with a realtor, and slashed prices twice. Not happening. And since I'm moving out of country, I don't want to rent it out. I know a property management company can help out, but it just makes me uneasy.
12 months ago - 4 answers
Best Answer
Chosen by Asker
Those "we buy ugly houses" generally close quick and give you cash. If you have tried to sell it for $200,000. then lowered it to $180,000 then to $170,000, you need to know that the buyer will be aware of that. Their position is that your real value is much less than that last price. They may say that your market value is $155,000 and want a discount down to somewhere between $108,500 to $124,000. They do not pick out your house as one they want to buy, they offer to buy any house, so that is why their prices are so low. My 80 year old Father does this and he finds people right and left that are so depressed they take offers much lower than they should, just so they get it over with. In my example you could have probably lowered you price to $155,000 and sold right away to a buyer that will buy the house to live in and taken a much larger chunk of cash with you. They don't have to have gatcha's because the price alone is a gatcha.
by glenn
12 months ago
Asker's Rating: 
Other Answers
There are quite a few legal gotchas in a cash deal but with you leaving the country I don't think the tax issue will catch up to you.
by mrsdeli- 12 months ago
You may wish to consider the option of "renting" your dwelling until such time as the housing market increases
by sunbun- 12 months ago
Most investors (cash buyers) pay 50% - 70% of real market value. I recently read an article about the cash buyer schemes, there are tons of legal ramifications. Since you do not have a Realtor, I suggest you have the purchase documents reviewed by an attorney. Have you tried listing with a Realtor?
by godged- 12 months ago