Are you thinking about buying a home in Las Vegas, paying cash for it, and looking to get a great deal in the process?
If you have never purchased a home or cash in Las Vegas, here are a few specific things that need to be considered.
Just like anything else, there are always pros and cons alike and hopefully, some of these hints will help you to be a little better-informed and ready to make the most of your cash purchase.
Cash Home Purchases
It may seem far-fetched for many home buyers to pay cash for a home, however, it’s actually becoming more and more common these days.
In fact, according to The National Association of Realtors, cash home purchases have increased to a whopping 32 percent in just one year.
Even in the Southern California real estate market, they’re around 30 percent of all of the monthly sales.
And, in some of the more popular places for homebuying, like Phoenix and Las Vegas, cash home buying made up a whopping half of the annual sales of homes!
Related: Is This A Good Time To Buy?
Pros and Cons of Paying Cash for Buying a Home in Las Vegas
So, if your future plans include paying cash for your home in place of a traditional bank or finance company mortgage, then you need to be aware of the specific pros and cons of paying cash for a home in Las Vegas.
Pros of Paying Cash for a Home in Las Vegas
Expedited Buying and Selling
Removing the mortgage company from the transaction means no feelings of uncertainty during the loan process.
During the loan process, there is a chance that something comes up on your credit report, or interest rates may affect how much home you can purchase.
Paying cash means less stress and a much faster buying process.
Paying cash doesn’t always get buyers a lower price, but often it actually does. Negotiating with a seller seems to be considerably easier when you’re offering cold hard cash.
Therefore, you most certainly could end up paying a lower price since the seller is well aware that he or she is going to get cash for the home in a quicker and easier transaction.
Money talks, so making a cash offer often carries a great deal more weight than one that has all of the ins and outs of financing involved.
As you probably know, the value of a home minus the amount owed on the mortgage gives you the amount of your equity.
When you pay cash, it’s all equity, so in the event that the need would ever arise for some substantial cash for an emergency you have that equity to lean on.
No More Payments!
For the average American, whether a homeowner or even a renter, housing costs can cost a large percentage of their monthly income.
But, when you pay cash for your home, you have no monthly payments, of course.
This can mean freeing up that money for other investments that could certainly be used to make you even more money.
Feeling More Secure
In the face of job loss or some other financial hardship, you won’t ever have to worry about dealing with foreclosure since you own your home outright.
Say Good-Bye to Market Fluctuations
There’s never any possibility of being upside down on the mortgage when you simply don’t have one.
So, it doesn’t matter what happens with the real estate market until you’re ready to sell again and considering your overall return on investment.
Related: Rent Vs Own?
Cons of Paying Cash for a Home in Las Vegas
Zero Tax Advantages
Many financial experts will argue that mortgage interest provides a wealth of favorable tax write-offs in the tax code. And, it’s true that paying cash for your home won’t provide any tax deductions at all.
Paying cash for your home might not take all of your liquid assets, but probably a good chunk of it.
Be sure to leave yourself a comfortable cash amount to cover you in the face of any emergencies.
You may also no longer have the option of taking advantage of some other excellent investment opportunities if all (or most) of your cash is tied in a home.
Setting a Spending Limit
Be sure to set a spending limit so that you don’t spend more money than what is comfortable for you.
That means that you can spend a certain amount while still having enough cash set aside. And, be sure to factor in the closing costs, too.
Count on Your Real Estate Agent
It’s a good idea to make a relationship with a real estate agent as he or she can guide you through the entire process, from locating the perfect home in a great neighborhood to making a purchase offer and negotiating on your behalf.
Straight through to the final closing, a real estate agent is your ally for a successful transaction.
Choose the Perfect Neighborhood
You may already have a neighborhood picked out, but consulting your real estate agent about other options is a good idea.
Seasoned agents usually have the inside track on many things that you may have overlooked or not even thought about, so don’t forget to make good use of his or her expertise.
|North Las Vegas||Summerlin|
|Desert Shores||Seven Hills / Anthem|
|South West Las Vegas|
Follow Your Must-Have List
Let’s face it, nobody knows what you like as much as you do. It could be an open floor plan that’s at the top of your must-have list. Or, perhaps it’s vaulted ceilings, a swimming pool, spacious chef’s kitchen, or a water view.
No matter what you love in a home, be sure you’re getting exactly that before making a huge financial decision. Remember, there are plenty of amazing homes out there so be patient in your purchase.
Make That Offer With Confidence
Cash buyers often find their offers are more quickly accepted (or maybe favorably countered).
Just be sure to consult your real estate agent to decide on what would be a good offer.
Related: Buying Home Process
A Final Word (or Two)
Although buying a home in Las Vegas with cash is a pretty common occurrence these days, it’s definitely not for everyone.
Even if it’s affordable for you, it’s a pretty big financial commitment and will tie up a big portion of your liquid assets.
If you can swing it, however, while still being able to hold onto enough cash to cover an emergency if it were to arise, then it can be a great option with your next home purchase.
Give The Urban Nest Team a call at 702-580-9198 to learn more about local areas, discuss selling a house, or tour available homes for sale.