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Why Cash Offers Are Better When Buying a Home

Who doesn’t want to own a house nowadays?

The real estate market has been at a high for a while now and the chances of owning one’s own home have become slimmer. This means that it is important to be vigilant when looking for that perfect house, as well as being prepared to take advantage of opportunities that present themselves. One may assume that this is something that only the rich and affluent can do, but this is not necessarily true. All it takes is some dedication, research, and sometimes even the willingness to walk away from what you really want.

In this article, we will examine how making a cash offer is beneficial when you plan to buy a house in Corpus Christi Tx.

Benefits of cash offers for buyers

In general circumstances, it is not easy to save enough cash to buy a house if you are working on a salary. This is because most of your income goes to paying for your monthly expenses, leaving you with very little spare cash for anything else. However, if you are someone with liquid assets that can be converted to cash then making a cash offer is always advantageous. Let us see how.

You can Close the Deal Faster

close the deal faster

When you have the cash to offer, it is possible to close the deal faster because you do not need to go through the tedious process of securing a loan, and then the subsequent wait that goes with it. You can pay in full at once or within a certain period of time. In some cases, you may even be able to close before 30 days.

Negotiation Advantage

This is another key advantage of making a cash offer. If you are buying at the full asking price, then the seller has no room to bargain with your agent because he already has the selling price settled. If you are lucky, he may even knock off some figures that can be used to improve the look of the property.

No Paying Extra on Mortgage Loans  

When buying a house in Corpus Christi with a loan, you also have to pay money on loan interest. However, if you use a cash offer, then the funds that you will use to buy it are yours and not from a bank or financial institution. This means that there is no extra expense for the mortgage lender’s interests.

Save on closing cost  

Sellers always add closing costs to make sure that they get the amount for which the house was initially priced. However, when you make a cash offer this is not necessary because you can simply close and pay. Most Realtors in Corpus Christi Texas only charge 2% of the selling price so with a cash offer there are no closing costs to pay.

Choose Your Own Closing Date  

Another advantage of making a cash offer is that you can choose the closing date. In most cases, the standard period for accepting an offer from a buyer is 30 days through which he or she can back out if they change their minds. However, with cash offers, the contract only has to be signed. This means that the closing is quick, and therefore you can immediately move in, if necessary.

No Hidden Fees 

You may encounter some real estate agents who will charge their clients extra fees for inspections or even for bringing in another agent during negotiations. However, with cash offers, everything is straightforward so you do not have to worry about paying extra fees.

Cheaper Tax Deductions  

When filing taxes, most taxpayers use mortgage interest to deduct their income. However, if you are closing using cash, there is no mortgage interest to deduct.  This means that you will definitely incur fewer charges on your federal tax returns.

So far making a cash offer to buy your dream home sounds quite good and practical but does have a few downsides that you should be aware of. Let’s keep reading to know more:

Downsides of a Cash offer

You will have Less Cash on Hand

Owning a house often comes with unexpected expenses in form of repair and maintenance. This means that you need to have enough money to take care of this kind of expense. Although the cash offer reduces the amount that you may spend on interest, it still leaves you with no extra cash for emergencies.

You can be Taken for a Ride  

 Offers made with cash are often much higher when compared to conventional loans for a similar property. This means that you may end up paying much more than the actual value of the house. It is therefore important to make sure that your agent finds out all relevant information about the home before making an offer. In most cases, sellers will be willing to sell at a much lower price but you may not be able to negotiate that amount if the cash offer is too high.

You may Pay a Higher Sales Tax Rate  

In most states, you will need to file for a sales tax certificate if you plan to buy a house that is worth more than $1,000.  This certificate ensures that your state gets its share of the revenues generated from selling or buying real estate in your area.    If you are using cash to make an offer, then this certificate will be almost 2 percent of the selling price.  Therefore, you may need to negotiate with your buyer or get someone else to pay for it on your behalf.

You may Lose the Property if there is Another Cash Offer  

When searching for a home in Corpus Christi, it is almost impossible to know if someone is making a cash offer or not.  If you are competing with another cash buyer who will close the deal in 48 hours without any contingencies, then chances are that they will have more bargaining power in the negotiating process.

But why does a seller prefer a cash offer over a financed one?

Let us learn some valid reasons why a seller would prefer to sell houses for cash offer over a loan:

Seller Wants to Sell Fast  

seller wants to sell fast

If you have a property listed for sale and you want to get it sold in the shortest possible time, then going with a cash offer can definitely help. In such situations, sellers also look for direct buyers with a “we buy houses for cash” offer.

Seller Feels Safer

In a real estate market that is going through a decline, sellers may want to take advantage of the market as quickly as possible. The only way they can do this is by attracting buyers who are ready to make a cash offer.  In addition, some sellers may feel a lot safer in a cash deal as it keeps everyone honest.

Seller Wants to Avoid the Cost of Foreclosure 

If you are in need of cash and your times are difficult, then chances are that your home may be in foreclosure. This means that even if someone is willing to buy your property at a discounted price, you still have to pay for the costs associated with the foreclosure. When a buyer offers cash, this problem can be avoided because no one needs to go through the tedious paperwork required for obtaining financing.

No Appraisal and Inspection  

In a cash deal, there is no need for an appraisal or inspection as the buyer doesn’t need to take out a loan. Sellers may not want to spend money hiring a professional inspector who will offer a report that details all the defects of your home. This means that you can avoid any problems with regard to structural issues and the overall condition of the home. In addition, you get to negotiate the final price with the buyer and make a deal that you feel is fair.

Simpler Closing Process for Seller

If you are selling your house, then there is no need for having a realtor or broker. The only thing that needs to be done for this deal to close is to make sure that the money gets transferred into the seller’s bank account. This will eliminate all of the stress associated with hiring an agent and can save you time as well.

Final Takeaway

Cash offers may appear more lucrative than other forms of payment because they take away the need to go through all the hassles that come with making an offer with a loan. However, it is important to know what you are getting into before making a final decision.

For buyers with liquid assets who want to buy a house in Corpus Christi Texas making an offer with cash is the most efficient option. And for sellers who want to make a quick deal and avoid the hassles of foreclosure, a cash offer is definitely better. If getting a cash offer seems difficult simply look for direct buyers with we buy houses in Corpus Christi tag line and get done with the house selling process quickly.
For more informative articles keep visiting Emu Article.

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