| Posted By |
Message |
jennyal
LIF Adult
Member since 8/07 1430 total posts
Name:
|
all cash buyer?
we are selling out coop and have two offers...1st one with a mortage and working with an income and the 2nd all cash., older couple whose income is pension payments...which is better and why?
SO NERVIOUS! dont know what to do
Message edited 3/21/2013 11:56:19 AM.
|
Posted 3/21/13 11:54 AM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
|
|
Re: all cash buyer?
An all-cash buyer is usually preferable -- co-op appraisals can be tough, and that is not a concern with an all-cash buyer. And also, most co-op boards won't even review the application or do the interview until a mortgage commitment is obtained. If you are not waiting on that, the process will move much more quickly because you will just need board approval and no mortgage. And there will be no mortgage contingency in the contract, and the fewer contingencies, the better it is for you as a seller (no stress about the buyer not being able to obtain financing).
I would just verify that the cash buyer has proof of funds (usually they can provide bank statements showing the cash funds or a letter from their bank attesting to the fact that they have adequate cash funds). And I would also verify the details of the pension income, because even with an all-cash buyer, the co-op board will want to make sure the buyer has adequate income to pay for the monthly maintenance. And some co-op boards have minimum credit score requirements, so I would make sure you know what they expect and that the cash buyer can satisfy it. It's more typical for a co-op seller to require more info about credit and income (instead of just a preapproval or proof of funds) before committing to a buyer.
Do you have a listing agent? If so, I would seek their advice, because they would obviously know the facts of the situation more than I would. But all things being equal in terms of the price and the other terms, and the qualifications of the buyers, I would give the cash buyer the edge.
|
| Posted 3/21/13 12:03 PM |
| |
|
Goobster
:)
Member since 5/07 27557 total posts
Name:
:)
|
Re: all cash buyer?
Cash for sure
|
| Posted 3/21/13 7:46 PM |
| |
|
jennyal
LIF Adult
Member since 8/07 1430 total posts
Name:
|
Re: all cash buyer?
Posted by Century 21 Dallow - Christine Braun
An all-cash buyer is usually preferable -- co-op appraisals can be tough, and that is not a concern with an all-cash buyer. And also, most co-op boards won't even review the application or do the interview until a mortgage commitment is obtained. If you are not waiting on that, the process will move much more quickly because you will just need board approval and no mortgage. And there will be no mortgage contingency in the contract, and the fewer contingencies, the better it is for you as a seller (no stress about the buyer not being able to obtain financing).
I would just verify that the cash buyer has proof of funds (usually they can provide bank statements showing the cash funds or a letter from their bank attesting to the fact that they have adequate cash funds). And I would also verify the details of the pension income, because even with an all-cash buyer, the co-op board will want to make sure the buyer has adequate income to pay for the monthly maintenance. And some co-op boards have minimum credit score requirements, so I would make sure you know what they expect and that the cash buyer can satisfy it. It's more typical for a co-op seller to require more info about credit and income (instead of just a preapproval or proof of funds) before committing to a buyer.
Do you have a listing agent? If so, I would seek their advice, because they would obviously know the facts of the situation more than I would. But all things being equal in terms of the price and the other terms, and the qualifications of the buyers, I would give the cash buyer the edge.
i'm confused, i asked my agent to verify the funds and she said its my lawyer;'s job, so i asked the lawyer and she said its the agent that verifies the funds....who's right?!!? will someone just help me! :)
|
| Posted 3/22/13 3:18 PM |
| |
|
|
|
Re: all cash buyer?
Definitely cash.
My SIL just had two offers on her home and she ended up going with the one because they offered a higher bid, all in cash.
I know she felt terrible though because the other was a nice, young family.
Can't be emotional when it comes to cash though. 
|
| Posted 3/22/13 3:21 PM |
| |
|
|
|
Re: all cash buyer?
Posted by jennyal
Posted by Century 21 Dallow - Christine Braun
An all-cash buyer is usually preferable -- co-op appraisals can be tough, and that is not a concern with an all-cash buyer. And also, most co-op boards won't even review the application or do the interview until a mortgage commitment is obtained. If you are not waiting on that, the process will move much more quickly because you will just need board approval and no mortgage. And there will be no mortgage contingency in the contract, and the fewer contingencies, the better it is for you as a seller (no stress about the buyer not being able to obtain financing).
I would just verify that the cash buyer has proof of funds (usually they can provide bank statements showing the cash funds or a letter from their bank attesting to the fact that they have adequate cash funds). And I would also verify the details of the pension income, because even with an all-cash buyer, the co-op board will want to make sure the buyer has adequate income to pay for the monthly maintenance. And some co-op boards have minimum credit score requirements, so I would make sure you know what they expect and that the cash buyer can satisfy it. It's more typical for a co-op seller to require more info about credit and income (instead of just a preapproval or proof of funds) before committing to a buyer.
Do you have a listing agent? If so, I would seek their advice, because they would obviously know the facts of the situation more than I would. But all things being equal in terms of the price and the other terms, and the qualifications of the buyers, I would give the cash buyer the edge.
i'm confused, i asked my agent to verify the funds and she said its my lawyer;'s job, so i asked the lawyer and she said its the agent that verifies the funds....who's right?!!? will someone just help me! :)
Definitely the agent! You want to make sure the buyer has the cash funds available before you even take the offer. It's no big deal - just like your listing agent would ask for a preapproval letter from a buyer who is getting a mortgage, she should just ask the buyer (or his agent) for proof of funds, and if it's the form of a letter instead of bank statements (which people often don't want to give), she should call the person who signed the letter (bank, attorney, financial manager, whatever) to confirm that the funds area available. I would also verify income and credit if it's a co-op.
|
| Posted 3/22/13 4:53 PM |
| |
|
jennyal
LIF Adult
Member since 8/07 1430 total posts
Name:
|
Re: all cash buyer?
Posted by Century 21 Dallow - Christine Braun
Posted by jennyal
Posted by Century 21 Dallow - Christine Braun
An all-cash buyer is usually preferable -- co-op appraisals can be tough, and that is not a concern with an all-cash buyer. And also, most co-op boards won't even review the application or do the interview until a mortgage commitment is obtained. If you are not waiting on that, the process will move much more quickly because you will just need board approval and no mortgage. And there will be no mortgage contingency in the contract, and the fewer contingencies, the better it is for you as a seller (no stress about the buyer not being able to obtain financing).
I would just verify that the cash buyer has proof of funds (usually they can provide bank statements showing the cash funds or a letter from their bank attesting to the fact that they have adequate cash funds). And I would also verify the details of the pension income, because even with an all-cash buyer, the co-op board will want to make sure the buyer has adequate income to pay for the monthly maintenance. And some co-op boards have minimum credit score requirements, so I would make sure you know what they expect and that the cash buyer can satisfy it. It's more typical for a co-op seller to require more info about credit and income (instead of just a preapproval or proof of funds) before committing to a buyer.
Do you have a listing agent? If so, I would seek their advice, because they would obviously know the facts of the situation more than I would. But all things being equal in terms of the price and the other terms, and the qualifications of the buyers, I would give the cash buyer the edge.
i'm confused, i asked my agent to verify the funds and she said its my lawyer;'s job, so i asked the lawyer and she said its the agent that verifies the funds....who's right?!!? will someone just help me! :)
Definitely the agent! You want to make sure the buyer has the cash funds available before you even take the offer. It's no big deal - just like your listing agent would ask for a preapproval letter from a buyer who is getting a mortgage, she should just ask the buyer (or his agent) for proof of funds, and if it's the form of a letter instead of bank statements (which people often don't want to give), she should call the person who signed the letter (bank, attorney, financial manager, whatever) to confirm that the funds area available. I would also verify income and credit if it's a co-op.
THANKS!!! can you represent in Queens  
|
| Posted 3/22/13 4:56 PM |
| |
|
ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
|
all cash buyer?
Be careful with an all cash older couple buyer on a co-op. Their incomes have to be sufficient to pay the maintenance.
|
| Posted 3/23/13 1:13 AM |
| |
|
SecretTTCer
LIF Adult
Member since 6/08 2284 total posts
Name:
|
Re: all cash buyer?
Cash is king!
|
| Posted 3/23/13 5:45 PM |
| |
|
JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
|
Re: all cash buyer?
I feel like there was recently a story about someone who had a cash buyer and coop board denied based on income.
I would want more information regarding actual income level of cash buyers. I'm not that familiar but is there a way to find out what the coop board requirements are?
|
| Posted 3/25/13 9:59 AM |
| |
|
Maybe-baby
LIF Adolescent
Member since 12/07 774 total posts
Name:
|
Re: all cash buyer?
Posted by JandJ1224
I feel like there was recently a story about someone who had a cash buyer and coop board denied based on income.
I would want more information regarding actual income level of cash buyers. I'm not that familiar but is there a way to find out what the coop board requirements are?
Yes, ITA. The coop board usually has income requirements for buyers. When we sold our coop our buyers had to earn 2.5 times monthly mortgage + maintenence. So the cash buyers may be in a bind if their fixed income does not meet the income requirements.
|
| Posted 3/25/13 12:01 PM |
| |
|
jennyal
LIF Adult
Member since 8/07 1430 total posts
Name:
|
Re: all cash buyer?
Posted by Maybe-baby
Posted by JandJ1224
I feel like there was recently a story about someone who had a cash buyer and coop board denied based on income.
I would want more information regarding actual income level of cash buyers. I'm not that familiar but is there a way to find out what the coop board requirements are?
Yes, ITA. The coop board usually has income requirements for buyers. When we sold our coop our buyers had to earn 2.5 times monthly mortgage + maintenence. So the cash buyers may be in a bind if their fixed income does not meet the income requirements.
but since this is all cash, how would they calcuate the monthly mortgage? they just need to cover the monthly mainitenance...
|
| Posted 3/25/13 12:04 PM |
| |
|
SusiBee
. . . . .
Member since 3/09 8268 total posts
Name:
S
|
Re: all cash buyer?
With an all cash buyer, I calculare the minimum income requirement based on maintenance only. Then I look at the source of the income, then the remaining cash reserve.
If I have any doubts, I present it to the rest of the board that is not on my committee.
Retired, all cash buyers are more often than not better off financially than working all cash buyers.
|
| Posted 3/25/13 12:12 PM |
| |
|
jennyal
LIF Adult
Member since 8/07 1430 total posts
Name:
|
Re: all cash buyer?
you guys are all making me nervous!!!   
|
| Posted 3/25/13 12:30 PM |
| |
|
Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
|
Re: all cash buyer?
pension is better than income. you can lose your job. If your pension goes under - the federal government takes it over. you will always have a pension once you start collecting.
|
| Posted 3/25/13 4:28 PM |
| |
|
|
|
Re: all cash buyer?
Posted by jennyal
you guys are all making me nervous!!!
Don't be nervous! You have a great problem, having too offers.
The key is just knowing your co-op board requirments ahead of time and doing your due diligence with the offers/buyers. This is also why you have a listing agent -- she should be requesting info from the buyer's agent and verifying as needed. All you need to do is ask each buyer for either proof of funds (for a cash buyer), a preapproval (for a buyer getting financing), and credit and income info. If a buyer won't provide this info, then that raises a flag and you shouldn't accept the offer. Buying a co-op requires a lot of financial disclosure and the buyer needs to cooperate. It shouldn't be an issue to get this information from buyers, esp. in a competitive, multiple offer situation.
I sold a co-op last year for an LIF member - we had two offers, one was a cash buyer and one was getting a mortgage. The offer was basically the same, in terms of offering price. I actually advised her and her dh to go with the buyer getting financing, because the cash buyer wasn't readily providing proof of funds and other info we needed, and the other buyer was more cooperative and it was more straightforward. It was the right decision, but had we not dug deeper into both offers before accepting the offer, we might have jumped at the cash deal and ran into trouble.
But no need to be nervous. Once you do some basic due diligence, you've done all you can do. Some of this is out of your control, esp. with a co-op. So try to relax! 
|
| Posted 3/25/13 4:50 PM |
| |
|
