What are the advantages of cash purchases?

Answer 1

Actually, there are several advantages to selling your house to a cash buyer that you probably should consider. I might just suit your situation better than going with a bank-funded buyer when selling your home.

No Banks

I know I just said that, but this is an important thing to keep in mind as it influences just about every aspect of your deal. You see the banks aren’t just loaning the buyer money, they are also taking partial control of the deal, so they get a say-so in how the whole transaction goes down.

Faster Closing

Since there are no banks involved to review, complain, or set a timetable for the deal, most cash buyers can close on a deal very quickly. Cash buyer also usually have the entire system streamlined with people in place that can typically close a deal in just weeks.

Fewer Contingencies

While it’s perfectly normal to have contingencies placed on any real estate transaction, the more people that put in their two cents, the more complicated these contingencies get. If you have the buyer and his lender both chiming in, you may not ever get a real idea of when and how you will actually close on the deal. Dealing with just the buyer and his cash makes things much easier to manage.

Home Repairs May Not Be Required

In most cases, a cash investor will pay cash for a home in as-is condition. They are actually looking for a deal and are perfectly happy with buying your home and putting in their own time and money to fix up your house to add value to the property.

It can be a win/win situation. You can skip fixing sockets, pipes, and broken tile, and the buyer gets a little better price on the house.

No Sudden Cancellations

While banks lending money make it possible for more people to actually afford your house, these same banks have the potential to kill a deal at any time. It could be for any reason. They might suddenly dislike the deal, the loan officer could be replaced, bank policy could change. You just never know.

Cash buyers aren’t relying on banks for the cash, so they aren’t in danger of suddenly losing funding and having to kill the deal at the last second, forcing you to start from scratch and find a new buyer.

You Might Save on Fees and Closing Costs

If you are selling on the traditional market with a broker or real estate agent, you will be paying them a commission and fee. This is usually 5-6% of the closing price for your house. It can be a substantial amount of money that you will save by selling directly to a cash investor.

In addition to that savings, some investors are also keen on paying all closing costs associated with the deal, saving you even more money.

No Marketing Headaches

You might think that since an agent is making so much money by selling your house that they would take care of all the costs associated with listing your home and marketing the property. This is not always the case.

The seller is sometimes responsible for covering the costs of photographers, videographers, Website fees, and just about anything else.

You also have to be on hand for showings at any time.

If you are interested in selling to an investor you can just give them a call or visit their website, and they can probably get you an offer within a day or two. It doesn’t get easier than that.

Selling your house for cash can not only move the deal along faster, but it can take most of the stress out of the entire process. Selling your home for cash means you are more likely to see the deal go through quickly. You can get cash offers, sell your house fast, close quickly, and get money in your account so you can get on with your life.

Answer 2

The advantages of using cash to purchase would be that you would have no debt adding up. You will most definitely learn to budget.