What Are the Pros and Cons of Buying a House in Cash?

If you ever watch real estate shows, you’ve probably heard the term “all-cash buyer.” It’s usually thrown out as a way to sweeten a deal, but what’s the reality about buying a house in cash? The world isn’t a TV show, and there are pros and cons to buying a house with cash as opposed to getting a mortgage.

Buying a House with Cash Is Increasingly Uncommon

If you’re in a position where you could buy a house with cash, you’re in the minority. With the median home sales price in the mid-300,000s, it’s not realistic for most people. Around 87% of home buyers finance according to the National Association of Realtors’ 2020 Profile of Home Buyers and Sellers.

If you do have enough saved to buy a home outright, that doesn’t mean you’re necessarily showing up with a suitcase full of cash.

What it does mean is that you’re not getting a loan. You might have savings, you may sell another property, or you could have investments you’re going to use.

The Upsides of Paying Cash

If you can pay cash for a home, there are undoubtedly some benefits, including:

The Downsides of Paying Cash

There are a few cons of paying cash for a home that you do have to think about as well.

If you’re weighing whether or not to buy a house in cash, it can be a good idea to talk to a financial professional first. They can go over all the different scenarios and how that choice could affect you for better or worse.

Of course, if you’d still have money in savings or investments after buying a house with cash, then it might make the decision easier.