CASH BUYERS ARE LIKE GOLD BUT...

One thing about the current market conditions is that we are seeing a lot of situations where cash is the only way to purchase. Many condos are not FHA approved or approvable. Any property with Condo Documents stating "right of first refusal" are our worst enemy.

I just experienced having a buyer who was just trying to get in on a good deal on a cheap condo with an FHA loan. We did the FHA spot approval check list directly with the president of the condo association. She answered every question correctly, or so she thought, until the very last minute in underwritiing and the lender found out that the association had right of first refusal for any reason.

I no longer have that customer, and I have to say it is almost a relief. We went through 3 attempts, she was qualified, and the last attempt, she backed out because she didn't like the unit. This was the ONLY unit in her price range that was FHA approved. Most condos around here are only puchasable with cash now.

Cash is like gold, but the limitations are that we have to find units or homes that are to the limit of the buyer's comfort zone, or of what cash the buyer has in the bank. My newest buyer is looking for a nice home to house her 2 dogs and 3 cats and have a yard and a safe neighborhood as well. Without suffering through short sales and foreclosures, we have been looking in 55+ neighborhoods. Finally I have found some that are not in 55+ neighborhoods and are for the most part in safe areas. Tomorrow will be the deciding day.

Buyer.....bring your checkbook.