All Cash Offers & GAR Contract Terms

Posted by Van Purser on Wednesday, August 23rd, 2017 at 1:27pm.

Share

As we continue to experience a Sellers’ Market one of the things that we have seen more of is Buyer’s making All Cash Offers.  In most cases these offers will result in All Cash closings.  However, we have seen an increasing number of Buyers make All Cash Offers and then revert to securing a mortgage in order to close.  This is a strategy that Buyers are using to increase the appeal of their offer.

In response to this our GAR Forms Committee has amended the “All Cash Sale” exhibit to address these issues.  In my opinion there are three areas that should be addressed to eliminate those making All Cash Offers from reverting to securing a loan in order to close.

     1.  The option that should be selected on the “All Cash Sale” exhibit should not give the Buyer the right to secure a mortgage to purchase the property. 

     2.  By denying the Buyer the right to secure a mortgage to purchase the property, it also eliminates the need for extending the closing date due to the         lender not being ready to close.

     

     3.  Additionally, with All Cash offers there is no need for an appraisal.  So deny the buyer the right to include an Appraisal Contingency in the agreement.

    

These selections will serve to eliminate Buyers that are making All Cash Offers when they actually are planning to secure a loan.  For those that will actually pay cash, these terms are customary.

Van Purser is a licensed real estate broker in Georgia.  Since 1981 Van has successfully purchased and renovated over 400 homes.  Additionally, he and his wife have represented hundreds of clients, their families and friends over the years as an associate broker with Metro Brokers and RE/Max and now as a broker of his own firm.  He and his wife, Jeanne, who is also a broker, have been happily married since 1977.  Van can be reached at 770-623-3313 or by email VanPurser@VanPurser.com  

Van Purser and his wife Jeanne are a licensed Real Estate Brokers in Georgia.  Since1984 they successfully purchased and renovated over 400 homes.  Their expertise is in representing Buyers or Sellers as an advocate; which means always ensuring their best interest.  Additionally, they represented hundreds of clients over the years as an Associate Broker with Metro Brokers, RE/Max and now with his own firm.  He and his wife, Jeanne, have been married since 1977.   Van or Jeanne can be reached at 770-623-3313, or by email at vanpurser@vanpurser.com or jeanne@vanpurser.com

Leave a Comment