The Rise of the Cash Buyer: Should You Try to Purchase a Home with Cash?

All Cash Offers are on the rise nationwide according to a recent Washington Post Article.  
As All Cash offers become more common here in Hampton Roads you may be wondering, Is a Cash Offer Better for a Seller in Today's Market Conditions? We will address this from both Buyer and Seller positions. Today lets take a look at the buyer's side of the transaction.
Cash Buyer Considerations:
Pro: A faster closing and move in may be possible since underwriting a loan is not needed. 
Pro: Under the right conditions a cash offer may motivate a seller to accept less for a home. 
Pro: Paying cash may broaden the choices for available homes since mortgage condition guidelines will not be a factor.
Con: Be Sure your finds are liquid or disclose any third party approval of involvement in funding when tendering a cash offer.
Con: Don't pay too much, have your Realtor protect you by making the purchase agreement subject to a professional appraisal.
Con: Condition issues that affect value or marketability. Work with a Realtor that understands conforming mortgage condition guidelines in order to know what repairs to ask for since a lender will not be involved and this safety net is not in place.
Con: Consider having such a large amount of your liquid assets tied up in static equity. Consult a certified financial adviser to calculate how does this fit into your overall financial plan and the risk vs. reward of investing a percentage of the cash. Remember later you will have to qualify and even pay interest to use your own money when it is all tied up in equity. 


It Always Pays to interview more than one Realtor to compare experience and knowledge. A full time professional Realtor with experience should be able to guide a Buyer through all of the potential "What If" scenarios.  Ask a lot of questions before and during the offer/negotiations in order to make good decisions that make is wise to go Cash vs. obtain a mortgage.

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