It’s a tempting scenario: having accumulated a considerable amount of cash, you find your Costa Mesa dream house, agree that the asking price is within reason—and prepare to sit down to make an all-cash offer. By buying it outright with cash, the future looks like ultra-smooth sailing, financially speaking. No mortgage payment. No interest. No monthly insurance set-aside or property tax pre-payment impounded into some escrow account the mortgage company insists upon. And you really own the place yourself—with no strings attached!
Although there are undeniable plusses to buying your Costa Mesa dream house with cash, there are at least three opposing reasons why it would be prudent to at least think twice before writing that all-cash offer:
- Diversification. Investment counselors never fail to preach the advantages of diversification. To the extent that buying your Costa Mesa property with cash means you will be funneling the lion’s share of your liquid assets into a single investment, it limits your freedom to explore other avenues. If a business opportunity beckons, you might wind up borrowing against your home equity—in which case you could have saved the trouble (and extra expense) by taking a home loan in the first place.
- Leveraging your position. You needn’t make an all-cash offer for your solid bank balance to contribute to the way you will be viewed by lenders. The home loan terms you are offered should reflect your substantial financial standing. When lowered interest rates are offered, the financial consequences are worth factoring into the big picture.
- Taxes. The federal tax reform passed in 2017 may have limited the interest tax deduction to $10,000, but that’s still a five-figure lightening of the load come tax time—one which reduces a home loan’s bottom line cost.
Of course, there are also some considerable advantages to buying your Costa Mesa home via an all-cash offer. Chief among them is the obvious: many Costa Mesa sellers choose cash offers over competing bids that require lender approval. Whether you are looking to buy or sell, one aspect of what we offer clients is my professional experience in helping structure or evaluate offers to purchase. Call!
We are built on a philosophy of Heritage & Hustle. The L3 is a full service real estate agency with a regional office located in the heart of #CostaMesa, offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976. It’s L3 mission is to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. The L3 was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, The L3 has grown to a full staff of 25 serving over 300 clients a year. The L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has The L3 donated hundreds of hours to many area charities, they have also received the prestige of being named one of the #toprealestatecompaniesinCostaMesa If you’re interested in #buyingorsellinginOrangeCounty, turn to the experts. Turn to The L3 and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact The L3 today at 714-444-4663 or email us at firstname.lastname@example.org
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