If you are considering purchasing a plot of land or some real estate and you’re not sure what the best way to go about it is, we are here to help! There are many benefits of buying land with cash. Obviously everyone doesn’t have this luxury to be able purchase land or real estate with cash but if this is something that is available to you and you are just simply unsure of what the advantages and disadvantages may be of doing this then hopefully this blog post will help inform you.
#1 Gives the Buyer A Negotiating Advantage
The first major benefit is that If you are in a bidding war for a particular plot of land that you want to purchase, having the ability to pay cash will put you at the top of the queue when compared to other prospective buyers. The seller will be more likely to accept an offer from a cash buyer rather than someone who is paying through loans. They will also be a lot more likely to budge on the asking price if you offer a cash payment.
#2 Gets the Contract Completed Faster
As the old saying goes, time is money, and this is never more true than when purchasing a plot of land. The quicker that a deal can be done the better it is for both parties involved. Having the ability to pay by cash will incentivise the seller to get the deal done faster so that the deal can be complete.
#3 No Mortgage Payments
The third and probably the most obvious benefit of buying land with cash is that you will not have to be paying mortgage payments on a monthly basis. Once the deal has been agreed, the contracts signed, and the cash has been paid the land will be officially yours!
Those are just some of the benefits of buying land with cash. Be sure to check out our great blog post that goes into detail on the benefits of actually owning land, be sure to check it out! An important thing to note is that in order to make the buying process as smooth as possible having proof of funds can be an important step. If you do make a cash offer for a particular property the seller will ask for proof of funds before signing the contract so it is vital that you have this proof on hand.