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BUY HOUSES FOR CASH

Purchasing a home with cash entails purchasing a home without the assistance of a mortgage or loan. The notion of a cash buyer is sometimes misunderstood: they must have cash on hand when making a bid. As a result, in order to be a cash buyer, you must be able to afford the new home without relying on the proceeds from the sale of your previous one.

What is a cash buyer?

When an estate agent promotes a home as "cash buyers only," it signifies the buyer does not want anyone to make an offer if they will need a mortgage to close the deal.


This could be due to a variety of factors. It's possible that they simply want the sale to be completed as soon as possible - they may have located their dream home and are terrified of it falling through, or they may be wanting to fast release equity from the property.

BENEFITS OF BUYING A HOUSE WITH CASH

  • It's less likely that the deal will fall through- The process of applying for a mortgage can be fraught with problems, ranging from getting turned down by the lender to taking much too long. By removing the bank from the equation, the sale is more likely to go through.
  • It is less demanding- The buyer does not need to be concerned about the mortgage process, and the seller is confident that the buyer will be able to raise the funds.
  • You’re appealing to sellers- Cash buyers are more desirable to sellers than those who purchase with a mortgage. This not only increases your chances of getting the property you want, but it also puts you in a strong negotiating position: because selling a property to cash buyers is often faster, safer, and easier than selling to someone who needs a mortgage, you're much more likely to get a lower offer accepted.

BENEFITS OF BUYING A HOUSE WITH CASH

  • There is no downward chain- Because a cash buyer can afford to buy a new house regardless of whether or not they've sold their previous one, there's no risk of the sale being disrupted by other sales falling through. According to HomeOwners Alliance study, one out of every five failed purchases was due to a sale falling through at another point in the chain.
  • Process can be a lot faster- If a person needs to obtain a loan or mortgage from a bank, they should receive a response within a month after submitting their application. A cash buyer, on the other hand, already has all of the monies they require, so there is no need to wait. In addition, surveys and legal checks on the property are frequently required by a mortgage lender. While the buyer will almost certainly want a survey in any case, If the house is brand new and they are convinced there are no difficulties, they may elect not to, speeding up the process even further.
  • It saves you money. Because you won't be paying interest on a huge loan, you'll spend less for the home in the long run. You're also avoiding the costs of the mortgage application process.
  • There is more security in the long run. You own the property from the beginning as a cash buyer. If you run into financial difficulties down the road, you won't have to worry about falling behind on your mortgage payments, and you'll always have a roof over your head until you decide to sell it.
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