While purchasing a home in cold, hard cash seems like something unattainable, many buyers choose to save up their money and make a cash-only offer on a home. If you've considered purchasing your next big real estate transaction with cash, there are many advantages to doing this. Here are some of the ways buying a house with cash is beneficial to you as well as the seller.
Cash Offers Are More Likely To Be Accepted
If a seller has a home that's been sitting on the market for some time, an all-cash offer is almost a guaranteed way to ensure that you can sell your house quickly. When buyers haggle with a home seller over the price, they usually have a mortgage pre-approved that's waiting to be activated. This can be time-consuming since the buyer has to go to the bank to finalize the paperwork. Buying in cash is extremely enticing to sellers who want to get out of the home quickly and avoid all of the excess closing paperwork and other related fees. Cash purchases streamline the process so it's much more likely the seller will accept your offer, even if it's lower than the original asking price.
Appraisals Are Not An Issue
When a seller puts their home on the market, it must be appraised by a professional who determines the current market value of the home. Sometimes this means that the home's value increases or decreases depending on the appraisal, causing issues for both the buyer and seller. When you make an offer with cash, no appraisal is needed since it's only related to the bank determining the final mortgage cost. Cash purchases eliminate this process which means less stress on you as well as the buyer.
Cash Gives Peace Of Mind
As a buyer, paying in cash means you won't have to worry about monthly mortgage payments. You will still have to pay property taxes on the home, but you'll no longer need to worry about possible foreclosure in the event of a job loss or other problem. You will also have more income to do things like remodeling or make home improvements. These changes can add equity to the home if you ever plan to sell it in the future. You'll also be able to draw on the equity you've earned if you ever need extra money in the future. Buying in cash is something that not everyone can do, but for those who can, it's a desirable option for the buyer and seller.