Cash Offer For House

Get A Cash Offer For Your House Now!

It is quite enticing to get a cash offer for your house. Cold cash means quick money and less difficulty attending to legal documents that go with the process of buying and selling. Also, the processing time is shorter compared to regular house selling transactions.

The basics of a Cash Offer

If a house buyer can pay in cash, house selling is more convenient for the seller because there is no need for approval on the mortgage or any other financing type. Cash transactions are usually completed in a very short time.

When buying a mortgaged property, the buyer goes into a 'microscope' to complete the legal documents before closing the deal. Sellers are more interested in buyers with cash on hand than those who need a mortgage to close because of the uncertainties in the underwriting process. A cash offer is merely buying in cold cash. Buying a property in cash can be done from the buyer's bank or cash in hand.

Get a Good Deal from a Cash Offer

In the seller's opinion, it doesn't matter where the cash comes from. Whether it is from a personal bank account or a mortgage loan no longer matters. The crucial thing here is that cash offers take away most of the risks of home selling.

Critical distinctions between cash offers and backed up mortgaged bids are the risk factors that a seller faces. Among the risks involved are the various contingencies included in a mortgage loan.

Finance Contingency

This contingency is entered as a clause in the "intention to sell" agreement signed by the buyer. In a finance contingency, the buyer can reverse the transaction if financing is not approved without risking his security deposit.

Inspection Contingency

In an inspection contingency, the buyer is given enough time while in escrow. During this time, they can inspect the property for any issues not declared by the seller during the negotiation stage. Also known as "due diligence," this contingency looks into possible issues like unpaid taxes, probate or possible foreclosure, land disputes, and actual conditions of the property. They could reverse the agreement without risking their deposit if the property did not meet the due diligence process.

Sale Contingency

The sale contingency is a clause in the agreement wherein the sale is entirely reliant on the buyer's current home. This condition is entered in the contract if the house's down payment will come from the sale proceeds of the buyer's property. Like the other contingencies, the buyer will not risk his deposit if the deal falls through. The risk will all be on the seller.

Why get cash offers for your house? 

Cash buyers don't need to follow contingencies or need any appraisal. In retrospect, cash buyers try to avoid an appraisal because they usually make a lower cash offer than the property's current market value. The cash buyer has the option to waive appraisal and inspections if they choose to do so.

In a mortgage loan, the seller needs to wait for the buyers' guarantee of payment. This guarantee depends on whether their loan is approved or not. A cash offer is more enticing as it minimizes the extra cost and the risk of the deal getting reversed.

Finding a cash buyer

Real estate transactions on a cash basis consist of only 15 - 20 % of the market. The four main groups of cash buyers are only limited and not easy to find. Among them are the following:

  • Investors

Real estate investors and companies offer cash for properties they want or will need for their business. They usually only care about the location or the land that the house is currently built-in, and will not care about the current conditions of the house

  • Retirees

Retirees usually use their funds to buy in cash to avoid mortgage loans and interest. The property will then be used as a retirement home or possibly a form of inheritance.

  • Prior owners

Homeowners who have paid up their loans can now provide cash to buy another property. Intentions vary, but usually, it's a form of personal investment. Some buyers may already have owned the specific property in the past and want to buy it for sentimental reasons.

  • Very wealthy Individuals

When you are rich or have money to spend, you can buy a property just for the whims - a summer home, a getaway place, or even a place to party.

Advantages of a Cash Offer

There are various reasons why sellers prefer a Cash offer compared to loan financing. Let’s take a closer look at them.

  • Deal Closes quickly

A cash offer is preferred rather than the long wait period of a traditional home sale. If all requirements are met, the parties can immediately close the transaction in ten days. 

As compared to loan financing, the proceeding may take longer than a month. This period is spent to check if the buyer is creditworthy. There is also the possibility that the lender will decline the loan derailing the loan process.

  • Cash for a house as a security option

Homebuyers typically buy a property through financing or mortgage. This process requires a home inspection, appraisal, and documents for mortgage or financing. The process slows down the early payment for the property. 

In a cash offer, the buyer may choose not to follow the process and eliminate property purchase problems.

Disadvantages of a cash offer 

A cash offer has its share of disadvantages. You must understand and consider each one before offering to buy a house in cash.

  • Face shortage of funds

Offering to pay in cash for the property may pose problems in terms of funding. Instead of buying a house and paying for it upfront, you can use the money to invest in other assets.

  • Missed tax deduction

Buying real estate property through a mortgage gives you a chance to enjoy tax breaks on mortgage interest payments. When purchasing a home on a cash sale basis, you'll miss out on tax deductions.

How to Buy a House Through Cash Offers?

Although buying a house through cash offers is more comfortable, and closing the deal is faster, there are many steps that you need to do. You must get the help of experienced realtors to lessen the stress of navigating through the process.

Express your intent to buy and the offer

An interested buyer should send an offer to buy immediately after finding out that the house is on sale. Then if the deal is right, the seller will acknowledge the bid.

Committing the Money to the Seller

This action will demonstrate your strong interest in buying the property. Putting in a deposit while all the documentations are underway will assuage a seller's feelings and lessen the seller's risk of changing his mind about selling his house.

Get Legal Team to Handle the legal documents

Once all documents are fulfilled, a title company can set up a transaction day and date. What follows is signing the paperwork, handing the check, getting the key to your new house, and processing the title transfer. Without a legal team to handle all the legal documents for you, the sale risks are higher.

Consider other factors in a Cash Sale 

Other factors may also arise during the negotiations that can cause the deal to fall through. One is if there's the feeling of being emotionally attached to the house's structural design, which may cause the seller to change his mind. Another is how the seller responds to the needs of the would-be buyer matters.

Sometimes, being emotionally attached to the house makes a buyer very interested in the property and thus results in a cash offer. However, the main reason for a cash offer to be reversed is either the house's conditions or if the bid is too low.

Bringing the deal to a close

Be sure to have the following documents with you for a signing appointment.

  • Government-issued I.D.
  • The Deed to the House
  • House keys, remote for the garage door, and codes to an alarm for a keyless entry
  • Cashier check, certified for other incremental costs not covered by the proceeds (lien, property tax, prorated utilities). The escrow company handling the deal should inform you if you need to bring additional funds.


Before you consider acquiring property in cash, analyze and study all the pros and cons. If you are buying a house in cash, think long and hard before plunging into it. Be sure that you see the full picture before offering an all-cash bid.