Have you considered making an all-cash offer on your next home? If you’re looking to purchase real estate in Downtown San Diego, learn why buyers are brining cash to the table when purchasing condos, lofts, and penthouses.
- Shorter Escrow – With an all-cash offer, you won’t have to bide your time waiting for a lender to check into your history, confer with the credit reporting agencies, check with your employer, and so forth. Putting the entire asking price into escrow avoids all the time and headache of financing. There are some sellers who may even lower the price for an all-cash transaction.
- Equity Loans – Another excellent but rarely-mentioned benefit to purchasing with cash is the opportunity to take out an equity loan or line of credit after your home is transferred into your name and you’ve already moved in and gotten settled. Equity loans, especially when there is no existing mortgage on the property, are relatively straightforward and simple to get. Be sure to check with your tax advisor for the particulars in your individual situation.
- Appeal to Sellers – Individuals selling lofts and condos in Little Italy, the Marina District, Core Columbia, and other downtown neighborhoods are generally more amenable to buyers who will pay all cash. There is no chance that the bank will turn down the loan, there is very little chance that the buyer will have a change of heart, and again, quicker and smoother escrow.
- Closing Costs – You can also save on closing costs when paying with cash. It’s also possible to avoid having the property appraised if you don’t need an appraisal; the mortgage lender is usually the prime reason for getting an appraisal in a real estate transaction. Title insurance is another area to save on. Most of the expense in title insurance is for coverage that only benefits the lender. Since you will have no lender, you don’t need that extraneous coverage. Title insurance for only the buyer is significantly cheaper.
- Peace of Mind – Last but not least, not having a mortgage can bring inestimable peace of mind throughout your life. You’ll never have to worry about loss of employment, disability, or the like in terms of having to come up with a mortgage payment each month.
If you’re interested in making an all-cash offer or you’re still trying to find the perfect penthouse or loft space in Downtown San Diego, call (619) 649-0368 and speak with one of the experienced and professional real estate agents from 92101 Urban Living. We specialize in luxury real estate in Downtown San Diego and can help you find the perfect home for your budget and lifestyle. Call us today, we’re here to help! ')}