Today’s real estate market is seeing a growing number of buyers purchasing homes with cash arrangements. It’s believed that this trend is due to new documentation and disclosure rules that are seeing more foreign cash buyers finding save haven in the US. If you’re in the market for a new home and are considering paying cash, here are some of the advantages.
Cash Buyers Are More Appealing
If a seller knows that a buyer is paying in cash, they tend to take them more seriously. Because the mortgage process is essentially time-consuming and there’s always the chance of an applicant getting denied, sellers like the security of straight cash. This also works in the favor of the buyer as cash is favorable when it comes to competing against others.
Position to Bargain
Paying with cash not only makes you more appealing to sellers, but it also puts you in a good position to bargain. Sellers want to get rid of their homes for the highest value that they can possibly get. However, what’s even more enticing is the fact that they’ll get their money sooner with cash payments.
No Mortgage Payments
Mortgage payments can easily cause financial distress. By paying with cash, not only will you have to deal with the hassles of paying off your mortgage, but you’ll be able to stay financially secure in the case of job loss or other misfortune. This is especially the case with homeowners that have suffered from bad credit and stuck with high interest rates. These payments can add up relatively quickly.
Bio: Kuba Jewgieniew is the CEO of Realty ONE Group, a real estate brokerage firm that has been ranked as one of the fastest growing companies in the nation by Inc. 500.