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The Pros and Cons of an All Cash Offer


Offering an all cash deal when buying a new house certainly has its appeal. Theres no doubt in the sellers mind that you won’t actually have the money and your chances of the seller accepting your offer increases. As competition continues to heat up in the Orange County real estate market, all cash offers are becoming increasingly common. Even if you have the cash and can offer it right then and there, it’s not always in your best interest to pay it all immediately. There is no one size fits all formula for real estate which is why it’s always best to work with the Orange County real estate experts at Balboa Realty.

Thinking about buying a new home? Contact Balboa Realty today: (949) 386-8310 

Let’s take a look at the pros of an all cash offer:

The Orange County real estate market has been hot lately, so when there's steep competition on the home you're looking to buy, an all cash offer can really help seal the deal. Because you’re paying cash you might even be able to negotiate the price lower and get a good deal. The entire home buying process becomes much shorter and the house becomes yours in no time. You’ll never have to even think about making monthly mortgage payments or stress about defaulting on your payments.  


Learn more about buying a new home in Orange County 

Now let's look at the cons of an all cash offer:

After pulling the trigger and buying a new house you deserve to feel on cloud nine, and not like you're savings is totally drained. Buying a home is a huge committment, and the last thing you want is to all of a sudden have to change your lifestyle and feel constantly strained about money. In addition to the cost of the house there’s other bills you can’t forget about and have to be able to afford such as the home inspection, insurance, taxes and monthly bills. If offering an all cash deal puts you in a potentially stressful situation, it might not be best for you. Getting home loan is more common than offering all cash, and with a mortgage you will be eligable to tax deductions that can really add up. The final con is that many financial advisors suggest the key to investing is diversifying your portfolio and putting your money in many different areas in the market - not just one. With less cash available to invest you could potentially miss out on other (and possibly better) investment opportunities.   

Published on Friday, June 29, 2018