Buying a home with cash has definite advantages in today’s market. National Association of Realtors® research on cash sales shows that about 30 percent of residential sales are cash transactions. Among investors and international buyers, more than 70 percent of properties are bought outright. If you can afford to buy up front, the advantages are many:
- Sellers are likely to favor buyers who can pay in cash.
- The home price may be reduced for those who pay in full up front.
- All-cash purchases streamline the home-buying process: No loans means less paperwork and no delays for mortgage approval.
- Cash buyers can save money on closing costs, bank appraisals, mortgage applications and fees, title insurance, and so on.
- Cash purchases eliminate the risk of loan denial.
- Cash buyers pay much less for their homes in the long run: No loans means no interest.
- Cash buyers never have to worry about losing their homes because they can’t afford to repay their mortgage loans.
- Cash buyers gain full, immediate equity in their home.
Financially and emotionally, paying with cash benefits the home buyer.
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