Some may be wary of paying cash to purchase a home (whether to live in it or flip it), but there are many advantages of cash real estate purchases. Consider these advantages, as purchasing with cash can help you to have an overall smoother process:
- Sellers often favor buyers who are paying cash. This means a leg up for you in bidding wars, should the need arise.
- You can sometimes get a discounted sale price for paying outright. Sellers are more motivated when they are offered a sure thing. The trade-off for them might mean lowering the price.
- Closing is usually a shorter process with less paperwork. When you do not have to worry about the loan paperwork, closing on a property is much easier, and there are less delays.
- You are not paying interest, so you spend much less for your home over the life of ownership.
- You can often save money on closing costs. Many closing costs are associated with the loan, so by bypassing that part of closing, you are saving even more money.
- You have immediate full equity in your home.
- You eliminate the chance of loan denial in the purchase. This also makes you more appealing to sellers.
- You can avoid an appraisal.
There are many advantages of cash real estate purchases. Paying cash is a great way to get what you want, at a price you want, much more easily.