Buying a Home with Cash
You’ve probably heard the phrase, “cash is king,” at some point in your life. It’s an old phrase that has been around for ages, and has slowly made its way into the real estate market. Over the past few years, with the increase in foreign investments and the rebound of the real estate market, buying with cash is becoming more and more common. This trend has buyers and sellers seeing the benefits that come from an all cash purchase. If you have the money to pay for your home outright, here are some benefits to buying your next home with cash.
The Benefits
You’re a More Attractive Buyer – Many times, sellers prefer working with buyers who are offering a cash only deal. The reason is simple: the closing process is a lot easier in all cash process. Similarly, in a multi-offer scenario, buyers could get a better deal by putting in an all cash offer. Sellers are looking for the best return on their investment that will take the least amount of time. So, if it comes down to it, they may be willing to take a cash offer at market value rather than a mortgage offer above asking price.
Save Time and Money – For buyers, there’s less cost involved over the life of the loan, and for sellers, it usually means a faster closing process. Buyers can also avoid the hassle of getting a mortgage and will not have to undergo the looming stress of monthly mortgage payments. Mortgages represent the largest single bill people have to pay each month, so avoiding that bill altogether can save buyers a lot of money. While an all cash deal negotiation can save sellers a lot of time, allowing them to reinvest in the market at a much faster rate.
Skip the Appraisal Process – The ability to skip the appraisal process is a huge burden lifted off a real estate transaction. Appraisals are highly subjective, and can often derail a deal, making them a major hassle in the home buying process. With a cash purchase, the stress and potential drama of an appraisal process can be skipped entirely. Which means no time is lost in closing or losing the potential sale.
Security – Peace of mind is priceless. There’s nothing like owning your home outright with no mortgage to worry about. If peace of mind is important to you, paying cash for your home upfront can be a smart move. Especially if you are approaching retirement. Without the worry of a mortgage payment you will have a higher sense of security knowing that whatever happens, you have a roof over your head. This also means you won’t have to worry about market fluctuations that may cause you to go upside down on your mortgage, and you can sell at any time.
Buying in Orange County
Are you ready to buy a home in Orange County? Whether you’re prepared to pay cash or are seeking mortgage pre-approval, there is inventory becoming more readily available on the market every day. Inventory throughout Orange County is currently predicted to continue rising as we enter the Spring season, but it’s never too early to start looking. I can help you find the right home in the best Orange County neighborhood that fits both your budget and your lifestyle. You can begin your home search here, or call me at 949-500-9714 to get started.