The Pros and Cons of Buying a Home With All Cash

Close up of hands giving house model to other hands with money.Carefully weigh ever aspect before committing to a cash purchase.

While many homeowners struggle to place a down payment on a home that they are interested in, a new fad has emerged in the home buying world – paying with cash. There have been increasing numbers of buyers purchasing homes with all cash, and that number is only going to increase in the upcoming years. Now, there are numerous pros and cons to purchasing with cash. Here are some of the most common reasons.


When you pay with cash, you’re going to essentially be a more attractive buyer all-around. For one, the seller will favor you over the other buyers, being that you have your finances in order. When inventory and the market is tight, you’ll want every edge that you can get in order to receive the property that you’ve been longing for. Additionally, paying with cash also gives you more leverage when it comes to slightly reducing the price.


If purchasing a home with all cash is tying up your assets, you may run into long-term financial trouble in the future. It’s always important that you maintain a solid savings account so that you can afford all the additional fees and costs that are going to come after the purchase of your home. If you look at the property as an investment, you could potentially find yourself in a huge financial mess versus taking out a mortgage. Now, it may not seem like there are any advantages financially when it comes to taking out a mortgage, but you must consider the fact that home values can appreciate and depreciate rapidly.

Kuba Jewgieniew is the head of Realty ONE Group, a real estate brokerage firm that has nearly 5,000 associates.