Some of you may be thinking that this could never be an option for you. However, there are a few ways you might find yourself in a position where buying a house with cash is an option. Maybe you have saved up your money for a long time, or you have come into a large sum of money through an inheritance or prize winnings (somebody has to win the lottery, right?), or you may have built up enough equity with another home to be in a position to buy another house outright. Whatever the reason, if you have the cash to do it, you may be wondering what the advantages are of buying a home with cash.

1.    No mortgage payments

dollar-1009324_1280When you pay for your house upfront, you can enjoy more spendable income each month since you will not be making a mortgage payment. This can provide you with more financial freedom, particularly if you are on a limited income.

2.    Save money on interest

Even when interest rates are at an extreme low, interest paid on mortgage loans adds up to a large sum of money. And if you run into a tight financial spot and find yourself unable to make payments on time, those interest payments can surge even higher. Buying a house outright with cash saves you these additional costs.

3.    Sellers favor cash homebuyers

Everything becomes easier on the seller’s end when you chand-710663_1920an offer to pay for their house in cash. This can give you an edge if another buyer is interested in the property, or if you want to negotiate a better price. Sellers feel more comfortable with cash buyers because they do not have to worry about last-minute problems with loan funding, nor are there a lot of contingencies involved.

4.    You can save money on closing costs

Those who purchase their homes with cash can avoid many of the expenses typically associated with closing on a mortgage. These expenses can include –

  • Loan origination fees
  • Property appraisal costs
  • Various closing costs typically required by lenders

Avoiding these expenses can equate to thousands of dollars in savings.

5.    You can close on your new home faster

If you are buying your home through a mortgage, you typically have to wait between 30 and 45 days for the paperwork to finalize before you can close on the purchase. When you buy a home with cash, the transaction can take place in about one week. Talk about a fast transaction!

6.    Fluctuations in the housing market will not affect you

This is a big one! Fluctuations in the housing market can leave many homeowners in a tight spot with their mortgage payments – meaning that if their home decreases in value, they will owe more than it is worth. When you purchase your home with cash, these fluctuations will be far easier for you to weather – until the next fluctuation goes back in your favor.

7.    Homeowners insurance is optionaldirectory-396264_1280

Those who purchase their homes with a mortgage are required to carry homeowners insurance, and possibly even flood or earthquake insurance. When you purchase with cash, this coverage becomes optional. Of course, a house is a huge investment and insurance coverage plays a big part in protecting that investment, but the choice is yours with a cash transaction.


Are you considering buying a home in South Walton?  Melissa Clements is a seasoned real estate agent with experience buying and selling homes in and around South Walton and 30A. Contact her today and begin your journey to finding your dream home!