Best of luck to you! Hope that helps:)
Shayla Twit, Sarasota FL Relator, specializing in luxury properties, c 941.544.7690, firstname.lastname@example.org
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-PROÂ®: Certification Internet Professionalism
Coldwell Banker Downtown
100 N. Tamiami Trail, Sarasota, FL 34236
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
Chat wtih me on"
Tammy Hayes, Realtor
Green Lion Realty, Port Charlotte, FL
Pamela LeVine, Broker/Owner
Dockside Group Real Estate
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.
Jim Sweat, ABR, CRS, CDPE, GRI, e-PRO, ILHM
A Proven Professional Working for You!
17 Years Experience
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.
Licensed Mortgage Broker
Ameritrust Mortgage Associates LLC
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.
Licensed Real Estate Broker
Key Solutions Real Estate Group