It’s no secret that real estate owners and agents love when clients purchase property with cash rather than with a bank loan. However, are there any benefits to the cash home buyer? Yes, there are. Let’s explore some of the advantages of buying real with cash.
Firstly, you will be saving yourself from the additional expenses of closing costs that banks charge. Most banks charge 3% of the property’s purchase price as closing costs. If you buy a $1 million property with a bank loan, you will pay $30,000 in closing costs. Moreover, you can also avoid appraisal costs if you buy real estate with cash. Appraisals are necessary when securing a bank loan to purchase property; the appraisal cost of about $6,000 will be on you.
Moreover, as a cash home buyer, you don’t have to worry about missing a good real estate deal because the bank rejected your loan request. Since you will have no bank loan, you won’t have any interest payments digging a hole in your finances. Interest payment for home loans can be very expensive, up to $700,000 on a $1 million home loan. Additionally, real estate deals involving cash purchases tend to close quickly, saving you lots of hassle and time.
To learn more, consult the video we have linked above.