Buying a home is perhaps the most crucial achievement that one can ever make considering that this is where you retire with your family. Two common ways of buying a home are cash and mortgage. Each method of acquiring a home comes with its own merits and demerits. Buying a home with cash has numerous benefits in today’s real estate market. A survey by the National Association of Realtors has shown that 30 percent of all property sales involve cash transactions. While the mortgage is the easiest way of buying a home it is not always the cheapest method. Here are some of the benefits of buying a home with cash:
People who want to sell their property often look to do so quickly and smoothly and cash selling is the way they can use to achieve this. Ideally, mortgage companies often deny preapproved buyers on the last day. For this reason, sellers want to be certain that their listed homes will be bought fast. Therefore, where possible, sellers will consider cash buyers. If you are considering buying a home, you stand a chance of enjoying higher bargaining power when it comes to closing time, the price, and repairs. Sellers are always willing to reduce the price of a property where the buyer wishes to pay with cash.
Home appraisals are very tricky and many variables are used when trying to make up the value of the property. For example, the price of a home will depend on the prices of the homes in the neighborhood, the amount of repairs needed and whether the home is being sold for a short sale. Cash buyers usually bypass the mortgage application, which reduces the amount of the loan that a lender would be willing to give a homebuyer. This means that when the appraisals bring down the amount of the loan hence may make the buyer not to be able to afford to pay the home.
Arguably, buying in cash comes with lower costs. For instance, the mortgage interest on a long-term loan can be double the original market value. The closing costs are to a greater extent lower when transactions are made in cash. Therefore, the cash purchases save the buyers the amount of time, helping them to avoid the elusive and often cumbersome procedures involved in buying a home using mortgage loans.
Cash transactions come with a greater amount of security. By working out your property in cash means that you do not have to worry about the pain of thinking about meeting your loan obligations. In the face of serious issues such as a loss of job or disability, you run the risk of losing your property through foreclosure. In addition, if you buy with cash you get your full equity whenever you want to sell your home. If you need more information about buying homes, visit Fairfax County Virginia Cash Home Buyers for more information and help.