Well this year I would to buy my house with cash I live in Philadelphia so where do I start. Can I still go through real esate agenies, with paying to much
ELOY
Comments
you can go anywhere. It doesn’t matter if it’s cash or not. In fact if you make an offer and tell them it’s cash, you might get a better deal cause the seller will be able to sell it quicker.
Real estate commissions have nothing to do with paying cash. You should be paying a realtor somewhere between 3 and 6 percent commission (only if you use a buyer’s agent. If you just go in and buy from the seller’s agent there should be NO costs to you besides the closing documents). You can also usually get a seller to cover some of the closing costs to help you out.
By paying cash, all you are saving is the need to get a mortgage.
yes, pay in cash.
in fact this gives you a VERY important advantage: buying power!
you but in a bid for the same amount as the next guy but say youll pay in cash and you have the place, no competition.
go tell a realtor you want to buy a house, tell them how much, and say youre buying in cash and they are instantly youre best friend.
I would guess that it would still be beneficial to use a real estate agent. They work for you on your behalf and do not directly cost the buyer anything.
You will still have costs associated with the purchase of the home, just a lot fewer than if you needed a mortgage. A realtor can advise you on all the steps necessary to protect your interests.
If you are buying cheap investment properties, then it may be worth it to look around without a realtor, but not unless you know exactly what to do. The seller could have liens or judgments against a property and try to talk you out of a title search to have the sale quickly. Don’t believe this. Always have the title searched!!
With cash your should be able to get a good deal any where you go.
The seller pays the real estate agent(s) not the buyer. Only if you buy a For Sale by Owners house can you expect to save anything and even then the sellers are going to try to get that “extra” 6% for themselves.
To most sellers the fact that you have cash means very little. It may speed up the process a bit but not much.
Remember that all of that money will be tied up until you sell the house. That is money that might be earning 5% or better and you will not be getting the interest on the mortgage as a tax break.
Having said all of that, we were in position to pay cash for our current house and did. It feels really nice to not have to worry about payments every month except for insurance and taxes.
Paying cash might not be the best route to take and it definitely does not give you more buying power. It gives you an advantage versus a person that will ask for a mortgage contingency. But think of it in this aspect.
If you and another person start bidding on a home valued at 500,000 dollars, and you’re paying cash versus a person pre-approved for a loan, you might be at a disadvantage. You might have 500K to work with, but that’s it. The other person might have 200K to work with, but he/she will be able to out bid you in a heart beat. The seller will always go with the higher bid…not the person paying cash.
Secondly, why would you want to place all your cash into a home? If you get normal financing you can save your money and invest it into another financial vehicle and build your net worth at the same time. Also, if you ever need to get access to cash, and all of it is in your home, then you would still have to refinance to cash out that equity. While having your money available would be better for you (my thoughts). I know a few people that decided to pay cash again my recommendation, and now they are coming to me for a refinance to pull the cash out for something that they did not expect to happen. The interest rates are higher now than 1 year ago, so they missed out on the ability of saving money in the long run.
