In 2016, the National Association of REALTORS® conducted a study that found that on average 12% of American home buyers purchased their home in cash. While saving up for the payment can be tough, being a Boca Raton cash buyer can have some major advantages.
Cash Appeals To Sellers
The Boca Raton real estate market is competitive, so it's important to make your offer stand out amongst contending bids. For a seller, cash is appealing because it not only sets you apart from the crowd as a serious home buyer, it also means a faster closing time. Without the rigamarole of applying for a mortgage and the waiting period preceding approval, the time it takes to close the deal can shrink from 4 to 7 weeks to 1 to 3 weeks. Additionally, most cash deals mean the home is sold "as is" which is great for sellers because it means no last minute painting or repairs are required.
Save Money On Interest Payments
If you're planning to use the house as an investment property, perhaps you don't mind paying a monthly mortgage payment. In many cases, if you do a bit of math and price appropriately, the money you collect each month from your tenant will cover the mortgage. If you hire a property manager, it doesn't even take effort from your day-to-day. However, depending on the reason you want to purchase a home for sale in Boca Raton, not having to pay interest on a mortgage can be particularly appealing.
If this will be your primary residence, purchasing the home outright can save you a substantial amount in interest payments. According to a study done by Credit.com, the average American will pay almost $300,000 dollars in interest over the course of their lifetime. That's the price of a modest home! A cash purchase means that you pay the exact listing price of the home and not a penny more. Any extra cash you put into your home will be for updates and renovations that benefit the overall equity of your property.
Negotiate A Lower Price
Money talks, and when the cash is there and ready to change hands, sellers are often more inclined to barter. Even the most serious of buyers can be rejected for a home loan at the last minute or come up short on cash. Offering the seller a cash deal below asking price can save a discerning home buyer tens of thousands of dollars.
You Own Your Boca Raton Home
Owning your own Boca Raton home not only comes with the freedom to renovate and update as you please, it also means you have the freedom to sell your home without worrying about the remaining balance you owe the bank. It also means that you can sign the title of the property over to another person at any time without having to resolve the issue of who assumes the last of the debt. And of the course, the biggest benefit is the peace of mind that accompanies knowing that your home is 100% your own.