Home Buying in Scarborough>Question Details

Catherine Pa…, Home Buyer in Scarborough, ME

When I decide on the location in Maine to buy a single family home or condo, it will be a cash purchase. Would a cash purchase be to my advantage?

Asked by Catherine Pahigian, Scarborough, ME Sun Feb 21, 2010

If a cash purchase would be advantageous, how? Thanks! Catherine

Help the community by answering this question:



As it was answered already, when a typical buyer buys a home, he/she "rents" money from a bank and the bank charges them a fee (Interest rate). At closing you do pay the seller with cash, either coming from your own account (cash) or your banks' account (mortgage).
It all depends in your situation, and every person has a unique set of circumstances, it advantageous to borrow some money instead of using your own cash. Your financial consultant is the best person to answer this question for you.
When banks "rent" you their money they want to make sure the house will appraise for the price you negotiate it or they will not give you their money, and you want to make sure it is in good condition (inspections). So you pay for an appraiser and you should pay for an inspector.

If you use your own money, you don't have to appraise it or inspect it but it is prudent to do the same due diligence and the bank wants you to do.

I live and focus in the Scarborough area and would be more than happy to work with you to find you your best home in your unique situation. I also can recommend a team of experts for you to assist you in the transaction.

Please don't hesitate to call me or email me at your convenience.

George Spatoulas
Google Voice: (413) MaineRE (624-6373)
0 votes Thank Flag Link Sun Feb 21, 2010
Hi Catherine,

All great advice! I work in the Scarborough area and would be delighted to represent you when you decide to move to Maine. We can weigh the pros and cons once you find the right home for you.

Feel free to contact me at: CJ Dubois-Cote, Prudential Prime Properties, 207-615-1663 or cindy@prubay.com
0 votes Thank Flag Link Sun Feb 21, 2010
Even when buying with cash be sure to have an appraisal and inspection contingency on your contract. You do not want to overpay just because you can. A house inspection can save you from buying a house with expensive defects.
0 votes Thank Flag Link Sun Feb 21, 2010
Hi Catherine,
In real estate jargon, cash is King! Certainly an offer with no finance contingencies has some merit over one with financing. Many deals fall at the last minute due to buyer's financing not being solid enough. Having said that however….many sellers do not seem to see this as a strong advantage because in their mind, they are getting cash anyway, whether it comes from your pocket or the banks.
Ultimately, it depends on the viewpoint of the seller (and their agent who is presenting the offer) as to much stronger a cash offer would be and if it was worth an additional “discount” off the price.
Linda Gardiner
Town & Country, REALTORS
Bangor Maine
0 votes Thank Flag Link Sun Feb 21, 2010
Some mortgages come with certain restrictions on the type or condition of the home you want to buy. A seller would like a cash offer because they wouldn't have to worry about any glitches with the financing and because it usually can close faster. Still, the best offer is usually the one they accept.
If you are planning a move in the near future I'd be happy to send you some listings that would match your criteria. That would let you get a good idea of what's available in the area and the price range where you want to be.
0 votes Thank Flag Link Sun Feb 21, 2010
Is this a duplicate question? It depends, most sellers will accept the best offer, even if it involves a mortgage. Do speak to your tax consultant, will paying cash be beneficial to you when it comes to taxes.
0 votes Thank Flag Link Sun Feb 21, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer