Should You Buy A House With Just Cash?

August 24, 2015 by  
Filed under Finance & Loans

Should You Buy A House With Just CashAccording to data supplier, RealtyTrac, the first quarter of 2014 yielded a 23.6% increase of all-cash deals pertaining to residential property sales compared to the prior year. There was a time when many people struggled to even afford a down payment. It looks as if the financial tides have turned, and a new trend has emerged.

The Pros of Buying With Cash

There are several pros to purchasing a home with cash. For one, you are a way more attractive buyer. If they know that you won’t have to go through applying for a mortgage, a deal could be finalized a lot quicker than normal.

Bargaining

Bargaining can be advantageous to you as the buyer. You are automatically put in a better position because the seller knows that as soon as they receive the money, they can put it to use right away towards damage control. Using this as leverage, many prospective homebuyers test the seller’s willingness to bargain.

No Mortgage Hassle

One of the reasons why you are paying with cash is to avoid the hassle of a mortgage. Not only will avoiding a mortgage give you peace of mind, but there will be no monthly fees, no closing costs, no lender interviews, etc. You avoid one of the single-highest bills that a homeowner faces in their lifetime.

If you are in a good financial position, it’s well worth taking a look at purchasing your home with cash.

Bio: Kuba Jewgieniew, CEO of Realty ONE Group, leads a real estate brokerage firm committed to providing agents the tools that they need to become more effective and build better client-agent relationships.


 

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