Posted by Barb25 on 7/17/12 1:57pm
Msg #427140

Cash Purchases

I have heard so many times that this is the easy money 5 or 10 minute small package in and out of the signing, how lucky was I to get this call. Mostly I find hear this from the person on the end of the phone offering the assignment for mostly glory and little money. For me personally, it has not ever been my best experience. Very few times does it work out as this wonderful gift. Unless it is a seasoned investor in conjunction with a Title company without a gazillion affidavits and disclosures about everything you can imagine, they take as long as a lender refi... For me anyhow.

I find that the buyer is anxious. The paperwork is daunting. The copies of the title commitment signed, initialed by the seller in this paperwork tramatizes the buyer. They have to initial it. Why? Now the buyer is reading all of this. Everything the seller signed the buyer is acknowledging and approving. OMG. Panic is setting in. The RE agent is trying to calm down the buyer who is about to part with their money. There is no 3 days here.... While this is happening I am trying to call "someone" and explain that noone carries two "picture" IDs to be copied. I get a special dispensation which I need because if I have enough infractions here the amount subtracted from my fee could exceed my fee and I will have to write a check to someone.

The buyer is usually appreciative for your patience. Only today, I was told that I was pretty laid back for a person that came from New York. Truth be told my training comes from doing these cash purchases. Give me a 125 page refi any day.

Reply by jba/fl on 7/17/12 2:09pm
Msg #427141

100% agreement. Those who call to say it is "only" anything have no clue. Time is the factor here....nothing else. Sellers have untold amount of paperwork and have no clue, realtor has no clue, TC doesn't answer and SS - back to original "no clue". They take longer most of the time and no one wants to pay decently because "it's only 35 pages". BS

Reply by VT_Syrup on 7/17/12 2:12pm
Msg #427142

I've been in 2 cash purchases as the buyer, buying my main residence. No escrow (or at least, no escrow that lasted past the end of the closing). At the end of the closing everything had to be perfect, because the deal was completely finished, except for receiving the optional title insurance policy in the mail and recording the deed. At the end of the closing the keys were handed to me and I drove straight to my new home and moved in. No room for re-dos.

Reply by jba/fl on 7/17/12 2:17pm
Msg #427143

We know that, VT. you missed the point altogether. n/m

Reply by Les_CO on 7/17/12 3:43pm
Msg #427163

Colorado is a good funds State, no escrow. When the deal is signed it’s done. No room for error and everyone must be happy. As a RE Broker I have done many hundreds of these closings, as a NSA I always charge more than on a std refi. In the past I always got a greater fee for a purchase, now most are offering less. I say call someone else.

Reply by dickb/wi on 7/17/12 6:33pm
Msg #427187

wisconsin also.... n/m

Reply by Linda_H/FL on 7/17/12 2:30pm
Msg #427145

Re: Cash Purchases...I have to say

"Unless it is a seasoned investor in conjunction with a Title company without a gazillion affidavits and disclosures about everything you can imagine,"

When I take these I confirm it's Buyer side only - and I have NEVER had a gazillion affidavits for just the buyer. One, maybe 2, that's it. Confirm at the first telephone call that Buyer will have certified funds or has made arrangements to wire and they're quick easy peasy.

My Seller side only closings have also gone smoothly but with a few more affidavits.

It's when you get Buyer and Seller together with a mortgage package that things get really exciting..

Reply by jba/fl on 7/17/12 2:36pm
Msg #427146

Re: Cash Purchases...I have to say

It is the tax paperwork that they stumble upon....and help is just not available sometimes.

Reply by Barb25 on 7/17/12 3:02pm
Msg #427153

Re: Cash Purchases...I have to say

I am talking about the buyer side. What I am talking about is the extraneous docs the title company throw in.... Nothing that really has anything to do with the buyer side of the sale.

It should be "quick and easy" but in my experience depending on the title co. has not been. And can be/is alarming to the buyer. Which in turn drags out the process. That is all.

Speaking of craziness... were we doing that? I had one purchase where there was a title defect. It had to do with a corner of the property where a fence joined. Title insurance was not going to cover that one foot or whatever. (Really don't remember particulars). Anyhow after 1.5 hours the buyer decided to proceed. Here is the kicker. He owned the other property in question. Now he owned both. Really?

Reply by desktopfull on 7/17/12 2:49pm
Msg #427147

The cash purchases that I get are 4 to 12 pages, a HUD and a couple affidavits. Half the time I just scan & email, title tells me to shread the originals.

Reply by Barb25 on 7/17/12 3:03pm
Msg #427154

I had "one" like that. LOL n/m

Reply by Letty Marquez on 7/17/12 3:10pm
Msg #427156

Hi,

I know what you mean. I got one last week where I was supposed to just come in spend less than 10 minutes and get out....yeah right! when I got there, they made me sit and listen to whoever they were talking about explaining each document and will keep saying "what's your next question?!!" really? I wish that if LO, escrows, or whoever is working with them would explain things either before I get there or just simply let us the CLSA's do our job.

Reply by MW/VA on 7/17/12 3:25pm
Msg #427159

Yes, these aren't always as easy as they sound. From

my experience they are often purchasing a foreclosure/REO. If they've had a knowledgable RE
agent there isn't a lot of anxiety.
I've closed a few purchase lender deals recently that were nightmares. The process drags on & on & then there's a last minute panic to get it closed. They're coming with certified checks, and instructions now say HUD will only accept funds by wire. Fun & games--LOL.

Reply by ME/NJ on 7/17/12 6:35pm
Msg #427188

Yesterday 18 page cash deal: Took an hour and conf call n/m

Reply by JanetK_CA on 7/18/12 3:35am
Msg #427240

Love this post! :>)

I've come to the conclusion that people who describe a cash purchase as "short and sweet" -- or some version of that -- have never done one! Buyers OR sellers want to read every line because there's no RTC and they want to make sure they got all the details they negotiated. Frequently it seems these are people who are investors trying to get a "deal" and they don't trust anyone. (Maybe that's their experience talking... )

However, I have run into a very few exceptions where they already have done a good bit of business with the parties involved and are familiar with the documents, so they just blaze right few. But these are rare. And this seems to be equally true of buyers and sellers, although sometimes for different reasons.