Home Buying in 34236>Question Details

Rojo, Home Seller in Arlington County, VA

What are the advantages of paying cash vs mortage for 55 residence in Lido Key area of Sarasota, FL?

Asked by Rojo, Arlington County, VA Thu Jul 19, 2012

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Shayla Twit, Sarasota Realtor’s answer
Rates are very low at the moment so it depends on your financial status. The major benefit to paying cash versus financing is saving on lender fees at closing. And a quicker more seamless closing.

Best of luck to you! Hope that helps:)

Shayla Twit, Sarasota FL Relator, specializing in luxury properties, c 941.544.7690, shaylatwit@gmail.com
0 votes Thank Flag Link Thu Mar 13, 2014
Hello Rojo,
This is a question which could be based upon your personal fiscal philosophy of debt vs no debt. Some of the pros and cons might be, interest rate of the purchase is the purchase a second home or primary residence. Is the property a condo in a "fundable" community if the property is an investment property you may want to inquire if the interest on the loan is deductable? And then there is the adage "Cash is King". Negotiating a cash transaction can be a massive motivating factor for a lower accepted offer. If you have specific questions please contact me directly, however I always suggest any buyer asking this type of question consult with their CPA. If you do not have one I can direct you to one here in Sarasota who can provide you guidance.


Faye Doyle, LLC
GRI: Graduate Real Estate Institute
CDPE: Certified Distressed Property Expert
ABR: Accredited Buyer's Representative
WCR: Woman's Council of Realtors
TRC: Transnational Referral Certification
e-PRO®: Certification Internet Professionalism
Coldwell Banker Downtown
100 N. Tamiami Trail, Sarasota, FL 34236
Cell: 941-504-7496
Fax: 941-364-8740
Email: fayedoylellc@gmail.com
Website: http://www.FayeDoyle.com
0 votes Thank Flag Link Thu Jul 19, 2012
It depends on your situation.
It depends on the situation of the real estate you are buying.
It depends on your investment or purchase goals.
It depends on the opportunity costs.

Your response(s) to any of those conditions can tip the scale in favor of of one vs the other.
We simply do not know enough to render anything besides foggy talk.

Borrowed money is quite cheap right now. Your investment counselor may have a few suggestions that will make your cash work harder for you than the anticipated appreciation of real estate for owner occupied, residence purposes.

Best of success to you,
Annette Lawrence, Broker/Associate
ReMax Realtec Group, Palm Harbor, FL
727.420.4041

Chat wtih me on"
http://www.RealEsateMadeEZ.us
0 votes Thank Flag Link Thu Jul 19, 2012
Just a few thoughts in addition to what you have already received. Cash offers can get you a faster closing and you may be able to negotiate a lower price, plus your closing costs are less. Your credit has no factor in paying cash. No finance charges when paying cash. No risk of foreclosure. If you pay cash for a home, that leaves you without money for an emergency fund or other investments. There are tax benefits when financing a mortgage. You can deduct 100% of the mortgage interest paid.

Tammy Hayes, Realtor
Green Lion Realty, Port Charlotte, FL
tammyhayesre@gmail.com
0 votes Thank Flag Link Thu Jul 19, 2012
Rates are so low now, it would be great to have a mortgage at 3.5%! It would depend what you are making on the funds you would use to pay cash or any penalty for withdrawing them. If you are qualified for the lowest interest rate, I would go for it! I can put you in touch with a couple of great mortgage people and you can negotiate for the best rate. I specialize in investment condos on Siesta Key and Longboat Key so I always look at any purchase as an investment and an investor wants to use as much of the bank's money they possibly can. Call me! Pam LeVine

Pamela LeVine, Broker/Owner
Dockside Group Real Estate
941-724-4787
0 votes Thank Flag Link Thu Jul 19, 2012
Rojo,

Keith is right, there are several advantages and he hit on two main ones.

If the buyer is able to obtain financing is a concern for sellers who want to lock in a strong agreement. Cash eliminates a major potential pitfall.

Even though the seller receives the full amount at closing no matter the source, they may be more flexible on price or terms if that worry can be removed.

You will be expected to submit proof of funds with your offer to verify that the cash does exist, or you risk the element of the unknown take away your advantage.

Respectfully,

Jim Sweat, ABR, CRS, CDPE, GRI, e-PRO, ILHM
REALTOR
Sandals Realty
Mobile: 941-306-7384
http://www.JimSweat.com
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0 votes Thank Flag Link Thu Jul 19, 2012
Hello Rojo,

You will most likely receive a variety of answers to this question. Much depends on your overall financial situation. Paying cash will help you save some closing costs. Keep in mind that interest rates are at all time lows and there are many loans that do not carry a prepayment penalty. This option would give you the flexibility of holding on to your cash now but still be able to pay off the loan at any time in the future.

I am located in the Sarasota/Bradenton area and work with buyers all over the State of Florida. If you would like to contact me I will be happy to provide you with some realistic numbers for both scenerios. I can also assist you with a preapproval letter for when you are ready to sign a contract should you decide to obtain a mortgage.

Thanks.
Alice Barker
Licensed Mortgage Broker
Ameritrust Mortgage Associates LLC
Cell: 904-614-7312
Email: AliceB@ameritrustmortgage.info
0 votes Thank Flag Link Thu Jul 19, 2012
There are several advantages to paying cash in the current market. The first is based on the type of property that you are considering. Most lenders currently do not lend in many condos and villas in this area. By paying cash you'll be able to consider all possible properties on the market, not just the ones lenders will provide mortgages on.

Another advantage is that many sellers view cash offers as stronger than financing offers and may consider terms that are better for the buyer.

If you would like more information on these benefits as well as others, please feel free to contact me any time.

Keith Redding
Licensed Real Estate Broker
Key Solutions Real Estate Group
C: 941-894-4216
E: redding.keith@gmail.com
0 votes Thank Flag Link Thu Jul 19, 2012
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