Real Estate Investment 101: Getting Started

Three Benefits Of Buying A Home With Cash

When it comes to buying a home, the process of negotiating the contract and closing on the property can sometimes be complicated. Buying the property with cash can make the process a bit easier, and it can even provide you with a few advantages. If you have a significant amount of money saved up, here are a few reasons to purchase your next home with cash instead of taking out a mortgage:

Flexibility To Negotiate On Price

You may find that a motivated seller is more willing to negotiate with a buyer paying cash. This is because the seller is guaranteed to get the money from the sale quickly when cash is involved. Buyers taking out a mortgage always run the risk of being denied a loan, and the mortgage application and approval process can be lengthy. If a seller wants to close on the home quickly, he or she may be willing to lower the asking price if the promise is a fast cash payout. 

More Affordable Cost Of Living

While you'll still be responsible for property taxes, homeowner's insurance, and possibly HOA fees, buying a home with cash means you won't have to worry about a monthly mortgage. You'll be free from the debt that mortgage-holding homeowners face, and you can rest easier knowing that even in times of financial hardship, house payments won't be a problem.

Simplified Buying Process

Buying a home with cash tends to simplify the buying process. You won't have to worry about getting pre-qualified or pre-approved for a mortgage to be taken seriously as a buyer, which means fewer visits to the bank. You can simply focus on negotiating the contract to purchase the house and having the home inspected. When the time comes to close on the home, you can present a cashier's check for the total purchase price and walk away with the keys to your new home. If you are unsure about the differences between a cash purchase and a traditional mortgage closing, work with a real estate agent with experience in brokering cash sales. Contact companies like Almost Home Real Estate Services for more information. This will help ensure that all of the details of the sale are taken into consideration.

It's important to remember that buying a home with cash will deplete your savings account. Before choosing this option, be sure that you will have enough money in reserve to cover financial emergencies, such as repairs to the home. Spending your nest egg on a home can come with many benefits, but it's a good idea to leave enough in savings to give you and your family a bit of wiggle room.