Paying cash for a house makes the whole process faster, easier, and less expensive. Partly because there are fewer protections. An appraisal is not required and neither is any kind of an inspection. To be eligible for most types of financing a house has to be “livable”.
Mortgage lenders protect themselves and by extension the home buyer.
Having a complete home inspection is important. Cash buyers rarely have the property appraised but they could.
The financing addendum will usually give buyers an out if they can not get the loan to pay for the house. They get their earnest money returned. Cash buyers may end up having to forfeit their earnest money if something goes wrong and they can not close.
Cash buyers should make sure there is a title company involved in the purchase and buy title insurance. Working with an experienced real estate agent is recommended.
All cash sales are becoming more common and account for at least 25% of purchases.
