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Should You Accept a Cash Offer on Your Home? What You Need to Know

Are you wondering whether or not it is a good idea to accept a cash offer on your home? Here’s everything you need to know about selling for cash.

Keyword(s): cash offer

Did you know that cash home sales increased from 16 to 23 percent of existing home sales between 2021 and 2022 alone?

With the entry of online buyers and a larger amount of fin-tech companies, seeing these increases is to be expected, but what does it mean for your home sale? Is accepting a cash offer the smart thing to do, or should you stick with traditional methods? What does the home-buying process look like this in case anyway?

Luckily, we’re here to guide you through the entire process. Read on to learn everything you need to know.

What Is an All-Cash Offer?

An all-cash offer is exactly what it sounds like. Instead of utilizing financing, the buyer offers the seller the entire cost of their home upfront. This takes away the need for financing, like a mortgage. When a buyer chooses this approach, you get to skip a lot of time-consuming steps.

While the end result is the same with or without financing, it’s about the speed at which the process is completed. There’s no risk when the home is purchased outrightly, and there are fewer hoops to jump through as a result. Also, neither party has to worry about whether or not financing fails or succeeds.

For this ease alone, cash offers are becoming a lot more common, but how often do they actually happen?

Are These Offers Common?

Did you know that as much as 24 percent of US single-family and condo sales were done in cash in the last two years? In some parts of the country, that number is up to over 40 percent. There are a few different scenarios in which these types of offers become more likely:

  • A real estate investor or company makes an offer
  • A buyer has sold their home and needs to invest sales money into a different property
  • A buyer wants to show a competitive edge
  • A home flipper makes an offer
  • The seller contacts an iBuyer to make the process easier

Remember, cash offers happen everywhere, anytime. You’re not necessarily getting scammed if you receive an offer like this, but it’s important to make sure you understand every detail that’s going into the sale.

It’s also essential to consider the current state of the market in your home’s location. Things like interest rates, refinancing possibilities, and home availability all play a big part in whether or not your home receives a cash offer, and these things are important to keep in mind.

Typical Uses

While you can receive a cash offer at any time, there are situations where they might be more acceptable. In fact, there are some scenarios where accepting cash simply makes sense. Here are a few of the most common:

At Risk of Foreclosure

For homeowners facing potential foreclosure, buying options might feel limited. Their circumstances mean they’re unable to make payments on their home, but a lot of scenarios — like eviction or bankruptcy — can have a big impact on their credit scores.

Instead of making a decision that could impact their lives for years, they choose a quick cash sale. In some scenarios, accepting a cash offer means avoiding an eviction, a saved credit score, and the ability to move with their life.

Sudden Life Changes

Whether it’s sudden illness or death, marriage, divorce, or even a new job, sometimes homeowners just need to move quickly. Sometimes, there’s a sudden to downsize or move closer to a certain location, and waiting for a traditional sale to go through simply isn’t an option.

Instead, a cash sale offers them a simple yet quick solution.

In Need of Repair

In other scenarios, the cost that some homeowners face for keeping a home well-maintained is simply too much. The bills for major home repairs like a roof needing to be replaced, water or electrical system issues, or even a cracked foundation can add up quickly, and it can mean a lot of stress for homeowners — especially if they’re unable to obtain a loan they need to pay for it all.

Selling the traditional way is always an option, but many lenders won’t approve these types of loans, making it almost impossible to move forward with the sale. That’s where a cash sale comes into play.

This way, sellers don’t have to worry about placing time and money into repairs, and the selling process is much less stressful than it would’ve originally been.

Who Buys a Home with Cash?

While anyone can buy a home with cash, there are a few types of buyers you can typically expect:

  • Investors
  • iBuyers
  • Home shoppers

You can usually expect investors and iBuyers more often than traditional home shoppers, but all three can buy your home for cash. Here’s what you need to know.

Investors and Flippers

Home flippers and real estate investors are about one thing — profit.

They’ll reach out about your home, but they’re not typically planning on living in it. The great thing is that they’re likely to waive any inspections since they expect repairs and renovations to be part of the budget. Since this is the case, though, they’re more likely to haggle on prices and make a lowball offer.

When selling to investors, you’re likely accepting their offers knowing this is the tradeoff. Often, the relief that comes with a quick sale is worth the lower sale price. It’s also a great way to know that your home is going to be in great hands once you’re out of it.

Investors and flippers aren’t the only ones who buy homes to fix them up and sell them, though.


iBuyers differ from investors and flippers because their process is about speed. Sellers that turn to this option are typically in a pinch, need a quick way out of their homes, and see this opportunity as an easy way out. They see it as easy because it is.

In most scenarios, you simply have to fill out a form or tell the iBuyer about your property to see if it fits their buying criteria. If it does, they’ll contact you to set up an appointment and make an offer. There’s usually a bit of negotiation room if you’d like to discuss alternatives.

Once a deal is reached, you’ll close with a reputable title company and have cash in your hands in as little as a week!

These time frames are going to differ between iBuyers, as well as the overall process, but they’re all fairly simple and straightforward. If you’re looking for a fast sale, this is definitely your best bet.

Home Shoppers

In a heated seller’s market, many home shoppers will make cash offers to give themselves an advantage during bidding wars. Typically, these home buyers are bidding on more expensive properties, as they simply don’t need a mortgage.

This can be because they have equity from a home sale, they received a gift or loan from a family member, or they’re simply wealthy and can afford to make that kind of purchase outrightly. Either way, home sellers are placed at a great advantage if these types of homebuyers approach them.

Benefits of Accepting a Cash Offer

Just because you can sell your home for cash doesn’t mean you should, though, right? Actually, there are other benefits that you can take advantage of. Here are a few of the best.

Quick Closing

The closing process on a home can take anywhere from 30 to 45 days, though it could take longer. That might not seem like a long time, but that waiting period feels like living in limbo, and there’s always a chance that the mortgage lending process can fall through.

During the traditional buying process, if a buyer’s financial situation changes at all, the entire process can be thrown off. In fact, this is usually why mortgage deals and offers often fall through.

In contrast, you don’t have to wait on mortgage underwriting when selling in cash. Buying with cash takes less time and is a lot more secure. 

Less Risk

These offers are also usually stronger than traditional financing, and they’re more likely to be chosen by home sellers. As a seller, you’re a lot more likely to look at a cash purchase and see financial safety than you would with someone who needs to finance. And if you need to sell your home quickly, they’re obviously going to seem like the best option.

This even goes for cash offers that are lower than the asking price. Sellers know that the deal is going to close faster, and they know they’ll be paid sooner than they would with other financing options. 

No Appraisal Needed

You also don’t need to obtain an appraisal for these types of home sales. The buyer doesn’t need to be approved for a loan, so there’s no need to reassure a mortgage lender of the home’s value. 

Great for Selling As-Is

If your home needs a lot of work done, selling as-is is a great way to get it out of your hair. It’s especially beneficial if your home has turned into a money pit that you feel like you’re constantly pouring into.

Whether your home is older or has just gone neglected, you’ll be able to stop wasting money when you accept a cash offer.

Quick Solution to Complex Problems

We covered a few reasons that homeowners might need to move quickly earlier, but sometimes those problems can become quite complex. In fact, they usually are.

With a divorce, you might need to split the equity in the home. You might need to relocate immediately without having to worry about little details. You might even be attempting to quickly avert foreclosure or collect cash to help pay down your debt.

Whatever the reason you have for moving, quickly accepting a cash offer for your home could be the easiest answer.

No Negotiations or Paperwork

A lot of people find negotiations stressful. The constant haggling and nitpicking over the smallest details of a home sale can be unpleasant to deal with, but a cash sale can take that stress away.

While you can negotiate with a cash buyer, you also have the choice to simply accept their offer on the spot. You get to move out on and move out, and they get their new home quickly. Overall, the process can be a lot more efficient than traditional home-selling methods.

Reduce Stress

It’s no secret that selling a home the traditional way is stressful, but you might not realize the difference a cash sale can make until you know what’s needed for a traditional home sale.

You won’t have to find a real estate agent, deal with the appraisal or any inspection, and you won’t have to deal with showings or open houses. You don’t have to spend money on repairs or renovations and, the best part, you don’t have to keep your home clean throughout the entire process. 

Is a Cash Buyer Right for You?

When it comes to receiving a cash offer for your home, it can feel like a daunting thing to take on, but you’re likely to find that it’s actually a lot easier than you thought. It quickens the entire process for you, and you won’t have to face the uncertainty that comes with your buyer’s loan approval process. With cash, it’s all laid out clearly and you can move forward with little to no worries.

Whether you’re selling to buyers that simply don’t need financing, or you’re looking to do business with an iBuying company, the process will look the same, and you’re going to have the benefit of a fast sale. If you’re curious about how our process works, you can learn more here and then reach out risk-free whenever you’re ready.