Are All-Cash Offers Always Best?

Are All-Cash Offers Always Best - The Tuttle Group

The weather in Dallas/Fort-Worth is heating up, but the housing market has been hot for quite some time, and it doesn’t show any signs of slowing down. According the Realtor.com, Dallas area homes are selling much faster than the national average. Dallas homes are, on average, on the market for 38 days compared to the 66 days for the national average.

So those looking to buy in this seller’s market need to find a way to stand out of the crowd, and some turn to purchasing with full-cash offers. True, an all-cash offer is appealing to a seller, and will stand out amid other offers, but is it always the best option even if you can afford it? Below are the pros and cons:


  • You pay less overall: Without a loan, you are paying the true value of the home, and not more over time like you would with a 15-year or 30-year fixed rate mortgage.
  • Attractive to sellers: Like mentioned previously, putting a cash-offer on the table is very attractive to sellers. This kind of offer means that the sellers don’t have to wait on your finances, and the deal goes through pretty quickly.
  • No mortgage: Buying the house in total up front means there are no monthly mortgage payments, and the additional money you don’t spend per month can be re-allocated.
  • Security: If you pay cash for you house, you can forget about foreclosure. Should you fall on hard times financially, you can at least have home security. Additionally, market fluctuations don’t have as big of an impact on those that outright own their home. You can’t get upside down on a mortgage loan, and you have more options should the market take a negative turn.


  • Tight funds: Paying cash for a house is a great option, but for many it is an option that comes with a huge financial strain. If you won’t still have a good emergency fund for cushion after you purchase your home, an all-cash offer may not be for you.
  • No tax deductions: One of the biggest incentives for homebuyers is the tax breaks that come along with having a monthly mortgage payment. However, if you buy a home upfront with cash, you won’t be eligible for tax deductions.

All blog information is of the opinion of the Loan Officer and is not supported by Fairway Independent Mortgage Corporation

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