Benefits of Buying a Home with Cash

How Buying a Home with Cash benefits Buyers & Sellers

Buying a home with cash has lots of benefits for both buyers and sellers, and can make the home buying process easier & less stressful for all parties involved. Sellers benefit from smoother closings, and avoid the stress of a buyer being denied a loan at the last minute. On the other hand, buyers benefit by paying less long-term for their home (no loan = no interest!) and gaining full, immediate equity in their home.

According to the National Association of Realtors about 30 percent of residential sales are cash transactions.

Still not convinced? has compiled a list of advantages to buying a home with cash that we’ve listed here, and some tips on how you can save in order to afford to pay in cash:

  • 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.

Figure out how to pay in cash 
Buying your house with cash might seem like an impossible dream. Here are some tips to help you achieve it:

  • Set aside unexpected windfalls, such as work bonuses or inheritances.
  • Lock money in a long-term CD to earn interest.
  • Once you have accrued cash, look for a house you can afford without borrowing extra money.
  • Consider moving to a less populated area, further from a big city, where home prices are likely to be lower.
  • Avoid the temptation to waste money. Tell your friends and family about your goal of buying a home; they will help keep your spending on track.
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