Wellesley, MA Real Estate Review, Cash Vs. Mortgage
Often people considering investing in real estate weigh the option of cash vs. mortgage. There are some great deals in today’s market and often offering a cash deal can make a deal even sweeter. When cash is involved there is no mortgage, therefore no chance of a financial contingency getting in the way of closing. Cash is king, but is cash the best avenue for you and your real estate transaction?
Cash is great for:
- negotiating power
- negating a financing contingency
- speeding up a closing date
- eliminating a monthly loan payment
BUT cash has its downside as well, a cash deal:
- ties up assets
- eliminates a mortgage interest tax deduction
Buying a property with cash to get the best deal possible could be a smart move, after all you could always finance the property later. As with any investment deal, knowing your financial position is instrumental to making the wisest decision. Owning a home outright allows for equity if needed in the future for the buyer, and allows a seller peace of mind in knowing a home will close after inspection and appraisal contingencies are met. Buying in cash is great in a bargain hunting situation but should be approached with caution and evaluation.
Click here to read an article from Realty Times regarding all-cash deals and the potential tax implications.
Call me if you want help with your home purchase. We have a team, Christine Norcross & Partners, at William Raveis and we can help you find your dream home in the Wellesley Real Estate market – Natick, Newton, Needham, Wellesley, Wayland, Weston and more.