Buying a home with cash can have numerous advantages. No mortgage payments and interest rates are just the beginning! When you factor in sellers who favor cash deals, streamlined closings, immediate equity, and savings on various costs and fees – the perks become more appealing. So if you find yourself in the enviable position of being able to do so, let’s explore some of the benefits of buying a home with cash.
Easier to Win Bidding Wars
As mentioned, sellers prefer cash buyers. It makes the process so much easier on their end. If you are engaged in a bidding war with another buyer who requires financing – you will have the upper hand as you pose less of a risk to the seller. Deals that contain financing contingencies always have the possibility of falling through if the buyer is not approved for a loan or some other issue arises.
Potential for Better Price
Many sellers are willing to accept a lower offer from a cash buyer. Sellers are more comfortable with cash buyers and are much more willing to negotiate a better price – especially if they are eager to sell or have a specific timeframe to meet. This unique position allows you the potential to save money on the purchase price when buying a home with cash. Not only that, but it also leads to…
Buying a home with cash streamlines the closing process as there are no delays waiting for any mortgage approval. The elimination of this step creates less paperwork and makes for a quicker transaction time, allowing you to close much faster. Of course, you will still need some time to order a title search and ensure that you can receive clear title and ownership.
Lower Closing Costs
Cash buyers can also reap the benefits of lower closing costs since they do not have to deal with many of the expenses associated with a mortgage. With mortgages, there are many fees that may be charged such as underwriting, credit report, land survey, appraisal, points, etc. Cash deals avoid these added expenses.
Savings on Interest Rates
Mortgage interest rates are significantly higher than interest you may earn from placing your funds in savings or money market account – adding to a large sum of money over time. Buying a home with cash saves you this additional cost. You also have instant equity in your home, which you may still access at some future point in time, if needed, via home equity lines and other financial tools.
More on Benefits of Buying a Home with Cash
As you can see, buying a home with cash can save you money in several different ways. Additionally, it can give you some added leverage in offer negotiations. As the market continues to get hotter and more competitive, this can make a big difference. Accurate Title offers great cash closing rates for customers buying a home with cash. Contact us for details.