When you find a piece of land that you love, there are a few ways to go about making the purchase. You could try to get a bank loan, but many banks don’t see buying vacant land as a lucrative investment. Another option that many land selling companies offer, including Southwest Land Deals, is owner financing—you make an initial down payment, then work out the terms of paying off the balance over time. If you don’t mind having a monthly payment to keep track of, this could be a great option for you. But, by far the best way to buy land is to make a cash offer. If you can pay the whole amount at one time, you will be able to close the deal with a minimum of fuss. In this post, we take a look at The Benefits of Making a Cash Offer for Arizona Land.
Let’s Make a Deal
If you want to ensure that your cash deal is the most appealing, you’ll want to back-up your offer in black and white. And the more organized you can make it, the better. You’ll need to be positive you’ve got all of your costs covered and carefully craft your cash offer, making the best impression possible for the seller’s needs.
Gather Your Funds
When it comes time to make the deal, you’ll need to show the seller that you can put your money where your mouth is. To take full advantage of making a cash offer for your Arizona property, it’s best to have all of the funds allocated towards your investment together in one account. This will help to keep you on top of your available closing funds. Remember, you’ll need to have ready cash when you present your offer.
Make a Budget for Buying
Closing is not the time to find out about a surprise expense that you aren’t prepared to meet. Before signing on the dotted line, be certain you’ll have the cash to cover the additional expenses involved in closing by making a budget. These costs can include Arizona property taxes, homeowner association fees, and the like. Be sure you’re aware of all possible costs or you could lose your deal.
Draft Your Offer
You’ll want to have the proper form filled out for the cash offer and have your financial statement in hand for the seller to review. Along with the offer, you’ll want to include a modest deposit, to show the strength of your commitment to the deal as well. Remember, when you’re offering cash your offer has the advantage of certitude with the seller, enabling you to potentially make a lower offer than a buyer who needs time for financing and approval.
The Advantages of Making a Cash Offer
It can’t be overstated that sellers find a quick and sure cash offer more appealing. This means that you have the advantages on your side when it comes time for the seller to consider all of their offers.
Naturally, without all of the parties involved in the traditional financing process, your deal will move much more quickly through the system. Once all of the requirements of the contract have been met, you can pay cash for the Arizona property in as fast as 10 days or even less!
No Potential Cogs in the Wheel
With financing come steps that take much more time to get the deal closed. Both the seller and the buyer have to hash out the terms of the agreement, including the payments and length of time it will take to pay the balance of the land. As a cash buyer, you can make your offer even more appealing to the buyer and skip some or even all of these steps.