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Why All Cash Makes You an Attractive Buyer?

Written by Posted On Thursday, 14 July 2016 07:24

At a time, when in most of the countries buyers invest in real estate sector after scraping up a mere 10% down payment but all-cash investment trend still prevails in Pakistan real estate. It is not wrong to state that almost all home sales are all-cash deals in Pakistan. And this is the reason that majority of oversees Pakistanis entered their hometown real estate sector after seeing the Dubai property debacle, which was mostly backed by mortgage deals. Moreover, the global instability also drove majority of oversees Pakistanis back to the relatively safe Pakistan real estate market.

Experts state that if you are out in market for property shopping, be it for an investment or residence, and can afford to pay cash for it, you must. It makes you an attractive and sellers consider you a serious buyer.

Why Does All-Cash Make Sense?

It makes you an attractive buyer

Definitely, a seller who knows that you have cash with you and do not need to apply for a bank loan is likely to take you more seriously. Otherwise, after liking the property buyers will apply for mortgage that can be time consuming and there is possibility that bank will turn down the applicant. After which, sellers will have to start all over again. On the contrary, being ready to pay cash not only gives you an edge to close the deal on your terms but makes you confident to move ahead.

It helps you get a better deal

Being ready to pay all cash makes you an appealing buyer and puts you in a position where you can bargain to get a better deal. Savvy buyers understand the importance of bargaining as it helps you get a deal on your terms. Moreover, sellers also prefer cash buyers because the sooner they receive the money, the sooner they can make use of it.

It saves you from the hassle of applying for mortgage

Since the property bubble burst after the global financial crunch of 2007-08, banks and lenders have tightened their standards for deciding who to give loan and who to refuse. Now they are likely to have stringent check on applicant’s income, impeccable credit record and demand more documentation. Lenders have become more prudent but it means strict rules for mortgage applicants. In this situation, all the serious buyers are left with no option but to pay cash.

It keeps you from mortgage payments pressure

Mortgage payments become the largest single bill that people have to pay each month and it suddenly becomes the biggest burden, in case they lose job or face any other misfortune. There was time when people did not have worldly wishes and they could pay the mortgage payments for some 20 or 30 years but now it is unlikely to stay in the same place for long let alone pay the mortgage amount for 2 or 3 decades. Therefore, for the peace of mind, a smart move will either be to pay mortgage payments as early as possible or pay full cash for your home.


Seeing all the benefits, it is easy to say that paying all cash for a home can make more sense than applying for mortgage.

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Khadija Aslam

Khadija Aslam is a marketing analyst at and she writes on a variety of subjects including business, real estate, travel etc. Check her blog and find her on twitter, facebook, google+.

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