- So buying a house with all-cash, what's up with that?
Good idea or not?
Let's talk about that next.
Dave Edwards, Treasure Valley Dave
and today we're gonna talk about
buying a house with all-cash.
Is that something you should do?
Just because you can does that mean you should?
Let's find out.
So with the all-cash purchase,
I have a lot of clients that come in
and they say, well, I'm gonna go with a low-ball offer
'cause I am paying all cash.
Well, you know, you're not the only one out there
that sold their house in California,
have big, big pockets full of cash right now.
There's a lot of people like that,
but does that really carry weight?
You have all this cash,
it really mean something to a seller?
In most cases, it doesn't really at all.
And the reason for that is in most cases,
people are buying normal houses, right?
Those are the kind of houses
that lenders are great at financing.
So if you come in with all cash,
with the express purpose of getting it at a steal,
the sellers, they're not stupid.
They're gonna say, well, why would I go all cash?
Just maybe, I could close two weeks earlier?
Or I could go full cash offer, multiple offers,
maybe I'll get over asking price
and they're gonna be financing it.
So it's like, you know, no big mystery,
let's go that route.
I mean, wouldn't you do the same
if you were a seller?
All-cash, there are times when it is the right thing to do.
There's some houses that can't go financing very easily.
Maybe it's a house that is partially under construction
and you need to finish the job.
Or maybe, it's a house that's kind of really beat up
and you're gonna come in and fix it up
and live in it or flip it or something like that.
Or manufactured homes
and manufactured homes are great houses.
I mean, you know, in the past few decades
they're very nice sturdy houses,
but if the house has been moved a couple of times,
or if it's not on a foundation,
getting financing on it is very, very tricky.
So, that's where you could come in with an all-cash
and buy the house.
But typically, the seller already knows
that financing options are very limited
and they've reflected that all-cash offer
into the price already.
And that's probably what caught your attention.
I mean, you're thinking, wow,
I could live in this house for, like,
a $100,000 less than any place else.
That's because they've already calculated
that all-cash price into what they're asking.
Wait just a second.
Hey, you know, this is a great informational thing
going on right here and we have more details
in our monthly magazine that we put out,
"The Good to Know" series.
So if you want to know more about today's subject
or subjects we've covered in the past,
make sure you go to our website
and check out the "Good to Know".
Now back to you.
- So let's say you come up here
with big pockets full of cash,
and you're just gonna go buy a regular house.
Obviously, you could probably get financing on that,
but should you pay the whole thing with cash?
And that's kind of up to you, really.
A lot of people like to have their house
completely paid off, it gives them a great peace of mind.
You know, if something happens in the world economy
and there's all this questioning going on of, you know,
what's gonna happen next.
Well, if your house is all paid off, you might have a real,
sense of comfort in that.
But alternatively, if your comfort level
is something different, maybe you could finance
half of your house and put the rest of the money
on another house and use that as a rental.
They have some rental income coming in.
So, it's really kind of up to you,
on what you would want to do and what your comfort level is.
But a great way of going through this process
is talking with some professionals.
Obviously, you want to be talking with
a great real estate agent like myself
to find out what kind of houses you could get,
maybe for yourself or for a rental.
Maybe you want to talk to a lender
that does this all the time
and I can certainly help you with that.
Maybe you want to talk with a financial planner
to see what your really long-term financial goals are,
even outside of real estate.
Getting all this information, I think,
is gonna be a very big help to making your financial future,
you know, something that is working for you.
So is cash king?
No, you are.
Cash is just a tool and you need to know how to use that,
to get what it is that you really want to get.
So if you liked this video, if you got anything out of it,
please go ahead and share, like and subscribe
And Treasure Valley Dave,
as always, looking forward to helping you get home.