Should You Pay Cash for a House?

Added: 2026-05-25

[00:00:00]Cash is king, but I want to throw out there that like what's the downside of paying cash? Well, the downside, depending on where you are with your overall asset profile, is just you're tying up that amount of cash in a property that essentially, once you pay cash for it, it's not working for you.

[00:00:17]Now, does real estate appreciate and grow? It does, but it's not liquid. So, if you pay cash for a home today and you ever want to go back and then access any of that cash, then you're talking about putting a loan on the home, which is going to have interest rate and cost associated with it. Now, the cool thing about paying cash is sometimes we have buyers that have the cash, but they don't ultimately want to just have a free and clear property. There's something called a delayed financing approach here. So, to allow that buyer who has the cash to win on the negotiation to do a fast close, and then they can come in within a period of time after closing and put that ultimate lien, that mortgage on the property and get some of that cash back.