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Anne Weintraub Perspectives Residential Real Estate Closings

Cash Can Make You The King, Queen Or Jester

The sales professionals in the movie “Pretty Woman” were not the only ones who made a big mistake when they ignored Julia Roberts, cash buyers make big mistakes too. For example, a cash buyer will insist a survey is not necessary to close on real property. For cash buyers, this concept rings true. However, buyers who close without a survey take a big risk. Some buyers learn the hard way. It is not fun to know your home intrudes onto your neighbor’s property and you-not the title underwriter-have to pay for the removal. Without a survey, no underwriter is obligated to pay. This is mistake #1.

Other than surveys, there is even more opportunity to make a mistake that will cost you plenty. The cash buyer believes there is no reason to spend money on an appraisal-they believe the comparative market analysis suffices to determine value. I am a big believer in the importance of appraisals-it’s wonderful news to know you bought into equity, but terrible news to know you overpaid. Choose an appraiser that is local and experienced in the area where the property is located and one who is properly licensed.

Drum roll please…the worst mistake of all time. Many potential clients ask me-do I really need title insurance and a municipal lien search if I am a cash buyer? Yes, yes and did I say yes? Some readers will think I am recommending title insurance because I get paid from the premium. The biggest excuses I get from those who ignore my advice to purchase title insurance and a municipal lien search is that cash buyers believe that running a title search is enough or that the title policy is too expensive. Running a title search is never enough-all sorts of issues can be missed and sting the buyer later. A “sting” is defined as a missed mortgage, lien, bankruptcy filing, code enforcement lien, IRS lien and the list goes on and on. Without title insurance, the cash buyer pays to remedy the issues-not the underwriter. And yes, I agree-title insurance is expensive. However, it is a one-time charge that will insure you for stings that are much more harmful and expensive later. I equate title insurance to health insurance for houses. The point is by trying to save a few bucks, you can spend hundreds of thousands of dollars to remedy issues that could have been addressed at the time of purchase.

Here’s the message-be careful, cash buyers. You want to remain King or Queen-not the Jester.

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Anne L. Weintraub is the driving force behind Anne Weintraub, P.A. practicing in Residential Real Estate Closing, Issuance of Title Insurance & Title Services, Refinancing, Contracts & Deeds and Short Sales & Alternatives. Her practice covers Sarasota, Bradenton, Lakewood Ranch, University Parkway, Casey Key, Siesta Key, Bird Key, Longboat Key, Lido Key and Downtown Sarasota.

Anne Weintraub, P.A. is located at 1800 Second Avenue, Suite 882, in Sarasota. You may reach Anne via email at aweintraub@anneweintraub.com or via phone at (941) 685-4300.