Selling Your House to a Cash Buyer: What Does it Mean, and What are the Benefits?

Is it better to get a cash offer or should you go the traditional route that involves a lender?

Find out here what a cash offer looks like and what all is involved when you are selling your house to a cash buyer and what it looks like when you work with a real estate agent… all the details you need are here!

What is an all cash offer?

An all cash offer is when a buyer doesn’t have to borrow money from a lender to purchase a home. 

Cash offer is often more attractive to sellers because they don’t have to worry about buyer financing fall-through risk. It also means a faster closing time.

When buyers make an all cash offer, it means they’re not filling out a mortgage application, documentation, underwriting, or appraisal, which can all slow down the process to sell your house. 

How does an all cash offer differ from a mortgage offer?

Here are ways the home buying process can differ with a cash offer:

Contingencies

In many cases, there aren’t contingencies when selling to a cash buyer. Buyers don’t need the financing contingency and there may be no need for a sale contingency either. However, some buyers may still want a sale contingency. 

Home sale

A home sale contingency means the buyer must sell their current home first before making a cash offer on another house. This can stall the process to sell your house. While this can happen with some cash buyers, it’s not a requirement. 

Financing

FInancing contingencies state that the home sale is dependent on the buyer securing a mortgage. This can be a lengthy process. And if it falls through, buyers can retract their offer without facing any penalties.

But you don’t have to worry about this contingency in a cash buy.

Inspection

Most, if not all, mortgage lenders require an inspection to make sure the home is in shape and inhabitable. However, this step doesn’t apply to cash buyers, unless they specifically request it. 

This could be especially helpful for you as the seller. That’s because if your house has issues, and you either can’t or don’t want to fix them, it won’t cause issues when it comes to selling the home.

Appraisal 

When it comes to selling to a cash buyer, you won’t need an appraisal, which can be great for you. That’s because you’re less likely to lose the sale if your home doesn’t appraise high enough.

And even though cash offers don’t typically require an appraisal, some buyers may still request one, especially if they’re an investor looking to guarantee returns. 

So it’s a good idea to talk with your real estate agent and do research to make sure you’re not pricing your home too high.

Closing

The closing process on a cash offer is much more simple. The buyer signs the settlement statement, title, and deed. 

Then they either pay a cashier’s check or wire over the money. After that, they receive their keys. It’s really that simple. Unlike with financing, they don’t have to fill out a whole lot of paperwork with a cash offer.

Why choose getting a cash offer and selling your house to a cash buyer?

Sell a house fast: there are many reasons you might consider getting a cash offer and selling your house to a cash buyer.

1. Fast home offers

With selling your house to a cash buyer, you can find out how much you can get for your property right away. 

While some cash buyers might provide rapid offers, others may want to speak on the phone or set up a time to go check out the property. 

So, keep in mind that you may not get a final offer until they perform a home inspection (if they request one). But nevertheless, getting a cash offer is a lot fast than selling the traditional way.

2. Fast home sales

If your buyer has to borrow money, you’re on the lender’s timeline, which can take weeks. But with lenders out of the picture, home cash buyers can close within a few days. 

But the length of time it can take to close on a cash offer really depends on the buyer. 

So, if the buyer can quickly complete the title work, insurance, appraisals, and inspections, then expect to have a faster closing process. 

And even if the buyer takes a bit longer to get all the paperwork done, the process can still be a lot faster than if they were to go to a lender. 

3. No repairs or home staging

When you sell your home to a cash buyer, you likely won’t have to make repairs or updates to the home. 

This can be especially helpful to if you’re a homeowner who’s in a pinch and need to sell a house fast. For example, you may be tight on money or risk losing your home to foreclosure. 

4. Fewer contingencies

When selling to a cash buyer, you likely don’t have to worry about an appraisal, a home inspection, and other contingencies.

5. Simpler closing

Cash buyers might get with a title and escrow company, and a real estate agent.to make sure their paperwork is complete and correct. 

But still, without a lender, there’s a lot less paperwork to review and sign off on to close the deal. 

6. Flexible move out

Whether you’re trying to move in ASAP or planning to wait until the sale goes through, selling to a cash buyer usually gives you more flexibility. 

That’s because you won’t have to wait on a lender to approve things like a loan or appraisal. So, your closing date is a lot more flexible.

7. Lower-maintenance sale

When selling to a cash buyer, you can sell your home “as is”. How much work put in is up to you with a cash sale. But with traditional buyers, there will be higher expectations for how your home should look. 

8. Fewer expenses 

There are a slew of home selling expenses, including home repairs, inspections, staging, and closing costs.

But with cash buying, you can choose to forego these projects, which means more money in your pocket in the long run.

9. More certainty

When it comes to selling to a cash buyer, the buyer either has money or they don’t. If you’ve verified proof of funds, you know you’ll be able to close..

How long can it take to sell your home to a cash buyer?

While every situation is different, buyers can complete a cash sale in 1 to 2 weeks. 

That’s because — like we mentioned above — you can omit certain steps in the usual closing process, which means you can sell a house fast!

Let’s look at a more detailed timeline of the cash buying process.

Offer:

Once the buyer writes up an offer, it can take about a day for the seller to accept it.

Funds verification

It can take the seller 1 to 2 days to make sure the buyer has the money to purchase the house.

Title and escrow services

It can take about a day for the buyer to secure title and escrow services.

Title search

It can take about 3 days to complete a title search. This process could be longer if the house has been through a foreclosure or short sale.

Inspections

If a cash buyer requests an inspection, it can take up to 7 days to book the inspection. Once the inspection is underway, it can take a few hours to complete.

Appraisal

While you typically don’t need an appraisal in a cash deal, some buyers may ask for it. If they do, an appraisal can take a few minutes to several hours. Then, the appraiser could take a few days to write the report. 

Walkthrough

It can take about a day for you and your agent to do a final walkthrough of the house to ensure it’s ready for you to move in. 

Closing

Finally, closing on a property can take about 1 and a half hours to 2 hours.

According to this timeline, a cash offer can take about 2 weeks to sell your home to a cash buyer. That is, if there aren’t issues that slow the process down, such as:

  • Not being honest with the buyer
  • Option periods
  • Low appraisal
  • A deceased person on the title
  • Additional liens aside from the mortgage
  • A divorce
  • Bankruptcy

Working with a real estate agent can facilitate the process to sell your house and possibly make things go a bit faster. 

What does the process consist of when selling your house to a cash buyer?

Now that you know how long it can take to sell your home to a cash buyer, you’re ready to learn what the entire process to sell your house is like. 

Here’s a more thorough overview of the process to sell a house fast for cash, from start to finish..

1. Make contact with the cash buyer

When selling to a cash buyer, you might set up an appointment with them, whether that’s through phone or in person. During this appointment is when the buyer typically makes an offer.

2. Accept the cash offer

During the appointment, you and the buyer will negotiate the term  of the contract. These negotiations might revolve around certain factors such as the:

  • Sale price
  • Closing date
  • Earnest money
  • Possible contingencies

Once you negotiate the terms of the sale that are acceptable to you and the buyer, you accept the cash offer. 

3. Sign the contract

Complete a Purchase and Sale agreement contract, which is also known as the “going under contract”.

4. Verify funds

Since the buyer is using their own cash, it’s important to make sure they have the money available. 

In this case, you’ll ask for earnest money up front, which is usually 1-2 percent of the sales price. You can also ask for proof of funds through bank or investment statements. This proof might also be in the form of an approval letter from a private lender. A real estate agent can help with this process.

5. Wait for the buyer to hire title and escrow companies

Depending on the state you live in, you might choose the title and escrow companies or they buyer will. 

A title company will make sure the property lines are correct and that there aren’t any liens on the property. 

A property lien is a legal notice related to an unpaid debt. This debt might include taxes, child support, the settlement for a court case against you, or a contractor who has done work for you. 

Debtors can place a lien on your property due to your failure to pay. You won’t be able to sell a house fast until you clear your liens. So, the title company must make sure there are no outstanding liens on your property before closing. 

Title companies are also responsible for providing title insurance and ensuring the property ownership transfers from you to your buyer on closing day.

The escrow company manages all closing documents, facilitates the transfer of funds, and completes the legal paperwork that records the sale. In some cases, the same company can handle both title and escrow tasks.


The sale can go as fast (or as slow) as the title and escrow company does.

6. Wait for the buyer to deliver earnest money to title

After signing the contract and opening title, the buyer will put down earnest money as a promise to follow through with the contract. This is like insurance to the seller. 

If the sale falls through down the line and the buyer fails to complete their responsibilities in the contract, the earnest money goes to you as “damages”.

7. Pass the home inspection and complete appraisal

Some buyers might request an inspection and appraisal before completing the sale. Once these are complete, you’re ready for closing.

8. Review and sign closing documents

Closing is when you sign all the documents that transfer the home from your name into the buyer’s name. 

Once you complete the closing paperwork, the title company verifies that they have all the required documents. 

This is when they transfer the money for the buyer to you, pay off any liens on the house, and give you any remaining proceeds from the sale via wire or check.

Is getting a cash offer the right choice for you?

Getting a cash offer and selling your house to a cash buyer may be right for you if want:

  • Confidence in the deal going through
  • A faster process
  • Fewer contingencies
  • Simpler closing
  • No appraisal stress
  • No closing costs
  • No home inspections
  • No commissions to a real estate agent

If you’re looking to sell a house fast, you can reap a wide range of benefits. Consider Mrs. Property Solutions. Contact us now and an agent will give you a quick cash offer the same day you call. Getting a cash offer and selling your house to a cash buyer can take out all your stress quicker than you know

Get a cash offer and sell a house fast >>>

Hannah Ray

Hana is in charge of our social media, marketing, and online presence! She manages our Facebook, YouTube, and Google my Business posting. She is also in charge of creating helpful blog content that provides educational information concerning home sellers in a bind that needs to sell their house fast. When she is not working, she enjoys being a new mom and spending time with her two little ones.

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