Tag Archives: all-cash offer

Money Monday: Reasons Not to Purchase a Home with All-Cash

Even if you have the financial means to put in an all-cash offer, you may not want to do so.

All-cash offers can be more appealing to home-sellers, but you also need to take into consideration the other aspects of paying so much cash upfront.

All-cash offers in today's real estate market

  1. Will you have enough liquidity left? At least a few thousand dollars left in your pocket is ideal. You may have repairs, upgrades you desire to make, and increased utility and maintenance costs for your new house — not to mention your typical costs and unexpected financial needs (such as medical bills or suddenly losing employment).
  2. What if you easily qualify for a mortgage? Interest rates are still on the low-side, and by obtaining a mortgage to purchase a house, you would be able to keep a large chunk of your finances.
  3. Paying all-cash means you miss out on a tax break. When you have a mortgage, you are able to receive a tax break on the interest paid to the mortgage lender.
  4. & 5. reasons are available to read at Finance.Yahoo.com: “5 Reasons Not to Purchase Your Home With Cash.”