Did you know buying a home with cash could save you an average of around $100,000 on interest fees alone? While everyone has unique reasons for buying in cash, the savings are no joke. If you want in, you need to go about it in the right way.
If you’ve decided that buying a home with cash is right for you, don’t proceed without reading these five helpful tips!
1. Always Negotiate
A cash buyer is always more attractive to sellers. If you’re paying cash for a home, you have a lot of power at the negotiation table! Use it to your advantage to get what you can.
Some sellers will take a lower offer in cash, or they might even cover closing costs. Want to learn from the best? Discover more about cash buyers.
2. Include Contingencies
You need to protect yourself during negotiations. You don’t want to make promises, and then realize your dream home wasn’t worth the cost. You can make your offer contingent on certain things checking out.
While a financing contingency is unimportant to you, be sure to include inspection and appraisal contingencies. Your offer will be official, but it’s clear that you’ll only buy the house if the inspection proves it’s in the expected condition.
3. Remember the Fees
Even without a mortgage loan, there’s a lot more to buying a house than the price tag indicates. When you’re getting your assets and savings in order, remember that you have fees to cover as well.
Some fees that you could end up paying include:
- Partial or full closing costs
- Homeowners’ association fees
- Property taxes
- Real estate and settlement agent fees
4. Know What You’re Getting
Do your research! Go beyond the usual appraisals and inspections to get title information from your settlement agent as well. You need to know if there are any claims or liens before going all in on a new house.
You may also want to consider getting a land survey, especially if property lines are unclear. This will let you know what’s yours, but it also gives invaluable information about the property itself, such as the flood risk.
5. Protect Your Investment
The last thing you want is to invest your savings into a property only to have the unthinkable happen. Make sure you don’t lose anything by getting homeowner’s insurance. It’s not mandatory, but it will give you peace of mind.
An insurance agent can help you find the type of coverage that’s right for you. You may be able to save money by bundling it with your other insurance as well.
Learn More About Buying a Home with Cash
Armed with these tips, you’re ready to take on the home-buying process and save some money! Start your research today to find out just how to do it. From finding the right house all the way through to the closing process, there are plenty of resources to help you out every step of the way!
Want to read more helpful articles like this one? Check out the household and real estate section of this site for all the tips and tricks you need about buying a home with cash and beyond!