If you are thinking of making a Miami Beach real estate purchase, one of the first questions we have to ask new buyers is, “How will you pay for the property?” It’s not always a question that buyers like to answer in the first conversation but in our market it’s essential to understand what type of property you will be able to buy. The Miami Beach real estate market is a heavy cash market, and not all properties qualify for traditional financing options. So if you need financing, it’s important to get that process nailed down in advance to looking at the property so we spend time looking at properties that you can purchase.

Here’s more about this topic in our video.

Why Does It Matter If I Pay Cash or Get Financing?

Things to consider when paying for a property.

1. When you are a buyer paying cash, with proof of cash, the seller can be pretty confident that pending typical contract contingencies, you will be able to close.

2. Cash buyers can typically close faster.

3. With financing, the seller is not only depending on you to close but also a third party, the lender.

4. The lender will need time, typically 20 to 45 business days to complete their underwriting process and approve the buyer, the property, the building, the appraisal and other financing contingencies. It’s not a done deal until the lender gives the final clear to close which can take several weeks.

5. Many buildings in our area are not eligible for traditional financing.

5. Just because a building is not eligible for traditional financing, doesn’t mean that it’s a bad building. In fact, there are many reasons why a building may not be eligible, and not all are bad. For instance, most pre-construction/new buildings are not eligible for traditional financing.

In the end, it’s crucial to understand how you are planning to pay for the property, so we can show you the best properties with your buying power. Cash or financing makes no difference to us but for some sellers and buildings it can make a huge difference. And if you need financing and you are looking at properties that are not eligible for financing, you are wasting your time.

Buying or selling real estate is a tedious and emotional process, allowing an experienced agent to take care of you can make all of the difference in the outcome.