How easy it to buy a house?

Question

Hello all, 
Let's say I want to purchase a condo in either Las Vegas or Phoenix area for about $200k. & let's also say that I am going to pay cash up front to avoid mortgage payments and also to get a better deal. Can someone walk me through on how the this process will look like? Would I HAVE to get a broker or can I complete the deal myself? Also, if a home is $200k and im paying upfront, how much am I looking to spend all in all? Including property tax, broker fees (if mandatory), etc etc etc.

Thank you guys!

curtisports2 · Accepted Answer

There are no simple answers to complicated questions. As for costs, every deal is unique. Taxes vary greatly. Insurance costs can vary greatly.  Seller's pay broker commissions unless YOU go out and hire a real estate professional to directly represent you, and then the seller does not pay this person, you do.  The vast, vast majority of transactions do NOT involve a buyer's broker.

You don't NEED a real estate professional to buy, but navigating the process is a lot easier and usually benefits you to use one. You DO need your own attorney.

The ONLY time paying cash is going to get you a discount is when a seller MUST sell immediately, or when a property is severely distressed, and then, fixing it up might cost more than paying more for something that doesn't need work, if you don't know what you're doing.  In normal real estate markets, property sells for market value. Sellers don't care if you're paying cash because they're not in any great hurry to sell and waiting another month or two for their buyer to get bank financing is no big deal. They want top dollar, speed is not an issue.

All having cash means is that you will avoid the couple of thousand, maybe, in fees involved in getting financing, and of course, no interest to pay.  But, paying interest isn't necessarily bad.  If you have a pile of cash that can be invested for, let's say an average annual return of 7%, isn't it better to borrow the money to buy the property when you can get it for 4% - 5%?

A Hunch · Answer

You will get the same deal paying cash as you will with a 20% down downpayment.
With ultra low interest rates, it doesn't make sense to tie up $200K in a mortgage unless you are unable to qualify for a mortgage.
The only difference between cash buyer and conventional mortgage is the ability to close on the house quicker.

Real estate agents are paid by the seller.  There is no need for you to forgo the expertise of an agent, when the seller is paying.  Sure you might save a few pennies on the house but you are giving up the expertise of someone helping you with the home buying process.
- You need your own realtor, not the realtor connected with selling the property.

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How easy it to buy a house?

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