Buying a Home with Cash: The Pros and Cons

Buying a Home with Cash: The Pros and ConsBuying a home with cash is not a new trend, but it is one that is growing in popularity. Studies and research surveys are showing a shocking revelation: as many as 30% or more homes are bought outright with cash. In the home-buying market we are faced with in today’s world, buying a home with cash offers the purchaser many benefits that wouldn’t have otherwise been presented to them.

Using cash to purchase your home is smart, and will help keep you and your family out of debt. By buying upfront there won’t be a hefty mortgage payment to stress over every month. This method of home buying leaves your finances strung less tight so you can relax and enjoy life.

Though it’s certainly worth noting, the absence of a mortgage isn’t the only reason you should use cash if you have the means necessary. Paying upfront means more money in your pocket in the long haul, even if you don’t feel this way when you fork over that huge chunk of change. Part of the reason home payments are so high is due to skyrocketing interest rates, a popular trend in the current Southern California real estate market. These interest rates add on more than you think, and you can end up paying almost as much in interest as you do in principal.

Buying in cash makes owning a home more accessible to the general population. It’s a well-known fact that not everyone has perfect credit scores, or even near perfect for that matter. Due to this saddening situation, many people are left denied for home loans time and time again, forced into renting a home or apartment when all they really want is a home of their own. Using cash eliminates this, as the money is already available.

Lastly, paying in cash makes you a more favorable home-buyer. Sellers are more likely to chose you over another potential buyer, and the price of the home may even be lowered in your favor.

However, it is important to note the large commitment it takes to buy a home this particular way. You will need to work hard and persevere for a long period of time, always being careful not to spend extra money, if you want to save a sum of cash this large. In the end, it’s worth it in the California real estate market, just ask any Los Angeles real estate agent.

Elizabeth Marquart is Southern California’s real estate expert and home improvement project manager of choice. She always provides reliable  and diligent real estate representation-all with the highest degree of integrity. Visit or contact her for any real estate and home improvement questions by calling (310)246-0888 or at


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