Listing and selling your home requires a lot of effort from you. With repairs and cleaning, finding a reputable real estate agent, negotiating the price, and who will pay for closing costs, the list never seems to end!

But, what if someone has presented you with a cash offer on your home? Maybe a few years ago, you would have treated an all-cash offer with mistrust and apprehension. But, what about now?

There are several factors why accepting a cash offer for your home is preferable to a traditional sale. Cost savings, a shorter time to close, and fewer stress factors are a few of the clear benefits. Cash offers are no longer allocated for distressed properties sold “as is” or desperate sellers that prioritize the sale of their home fast over receiving market value.

What you may not know is that cash offers are on the rise in today’s hot real estate market. Cash offers account for over one-third of property purchases, the highest percentage since 2014. And, should you think instant buyers, or iBuyers, are driving the surge in cash transactions, they account for only 2% of the market share in recent years.

If you’re still not convinced that a cash offer is preferable to a traditional sale, consider the following:

First of All, What Is a Cash Offer?

It’s not always someone carrying a large money bag that wants to present you with a cash offer. Instead, the term “cash offer” refers to a situation where a buyer has enough funds to buy your home without the need for loans or financing.

This means a faster sale with fewer issues like contingent offer failures and bank appraisals. It often means the agreement is “as is,” which also means you won’t have to worry about making any repairs or improvements before closing.

If you don’t think a monetary offer is likely, think again. It happens more often than you might expect. Cash offers account for 20 to 40% of all single-family and condo sales, depending on where you reside and what the current market conditions are.

In other words, an all-cash offer is one made by a prospective homebuyer who has sufficient cash on hand to acquire the property without the need for further financing.

A key point to remember about a cash offer is that it is often much easier, quicker, and less prone to falling through because it does not require a mortgage. Cash offers appeal to sellers since they often close faster because there are fewer contingencies and there is no underwriting.

Is It Common to Sell for Cash in Residential Real Estate?

You’d think that having enough cash on hand to purchase a property outright would be uncommon. Hundreds of thousands, if not millions, of dollars, are at stake! However, as per the 2021 Realtors® Confidence Index (RCI) study, all-cash transactions grew by 42% from 2019 to 2021.

All-cash offers make up such a large part of the market because of real estate investors, who can be small-scale business owners or a conglomerate that buys houses. Second-time home purchasers and investors now account for a bigger fraction of the market, while first-time buyers’ proportion of the market fell by 18% from 2020 to 2021.

Many buyers can offer you an all-cash price, that is fair, and yet make a profit because they may be able to negotiate lower rates on everything from house repairs to title company costs. Making all-cash offers also helps investors since it allows them to close on property sales faster, reducing the amount of time it takes for them to see a return on investment.

When Are Cash Offers Used in Real Estate Transactions?

Bear in mind that there are different scenarios, as there are different cash buyers, when you are considering a cash offer on your property. Some are seasoned investors who will have a structure in place to enable an all-cash transaction.

Others may be first-time purchasers who expect typical safeguards such as an appraisal or inspection contingency, which states that the deal is contingent on a successful appraisal or inspection identifying the anticipated level of value. Here are the kinds of buyers that most often make an all-cash offer:

Home Flippers

These are seasoned investors who renovate and sell properties for a profit on a regular basis and are less inclined to need contingencies.

Buy-And-Hold Rental Investors

These are expert investors who purchase properties intending to convert them to rentals and are less likely to demand contingencies.


These are also known as instant buyers are tech-savvy, all-cash buyers in online real estate agencies that employ algorithms to determine a fair price for your home.

Retired or Wealthy Buyers

These are buyers who have enough money to buy a second property and/or invest in real estate. Because these are often first-time all-cash buyers, contingencies are more likely to be requested.

Homeowners With a Lot of Equity

Those who have sold their previous house and turned their equity into cash. These are usually first-time, all-cash buyers who are likely to ask for some contingencies. Regardless of which kind of buyer presents you with an all-cash offer, you must ensure that they have sufficient funds to complete the transaction.

The Differences Between Mortgage Offers vs Cash Offers

The key distinction between these two proposals is the origin of the money used to buy the property. Cash offers imply that the buyer has sufficient funds in a bank account or other form of equivalent to meet the total purchase price.

Mortgage proposals suggest that the prospective buyer will need a loan to meet the purchase price. The house sale transaction process differs a lot based on if the buyer is paying cash or applying for a mortgage.

Length of the Transaction

It takes time to sell a home. However, the length of time it takes is often determined by the buyer’s financing options. A mortgage transaction process can take two to three months to complete, whereas all-cash deals might take anywhere from five to seven days.

Steps in the Transaction Process

The process of selling a home includes several steps. In a traditional mortgage transaction, the lender must complete several additional steps before releasing funds to the seller for the home purchase.

These include a thorough underwriting and buyer application process, a lender-commissioned appraisal of the property’s value, and the inclusion of due diligence, financing contingency, and appraisal in the contract.

There are fewer procedures involved in completing a cash transaction. There will not likely be any stages involving underwriting or a mortgage application. While many cash purchasers will still be doing some due diligence and visiting the property, they will not want an appraisal.


A title and escrow company will be involved in both a traditional mortgage and a cash offer transaction to verify proof of money and other relevant documentation, obtain title insurance, guarantee the home has no outstanding liens and set up the escrow.

Depending on how fast the lender delivers funds after closing, monies from a cash transaction may post a little sooner than funds from a mortgage transaction.

The Benefits of Cash Offers

An all-cash home sale might be very different from a typical home sale in a variety of ways. Here’s a rundown of some of the noteworthy differences:

A Quicker Closing

A cash offer requires less time to complete from start to finish. Furthermore, without the involvement of a mortgage lender, the entire process becomes much quicker.

For one thing, there isn’t an underwriting process—which can take a few months. You are still required to have escrow services and a title search if you’re selling a house for cash.

However, because there isn’t a mortgage involved, you could have more freedom to browse around for low-cost escrow services. You might not need to do that if you’re selling to a seasoned cash buyer.

Less Risk for You

You may be receiving many offers as a seller. Unfortunately, some financing deals may fall through, leaving you with your unsold property for longer than you expected, costing you money.

A cash offer ensures immediate payment. It may be a smaller offer, but there’s less likelihood of issues due to a third party, which means you’ll be able to close the transaction faster and for less personal expense.

No Appraisal Needed

When it comes to traditional home sales, someone will need to do an official appraisal of your home and determine its value. If a lender refuses to finance the sale of the property based on the appraisal, you’ll be put in a world of pain.

A cash sale eliminates the need for an appraisal. There is no need for an appraisal if you don’t have a mortgage lender.

You Can Sell “As Is”

A house inspection may reveal the need for a variety of repairs, some of which are expensive. Cash sales, on the other hand, are usually “as is,” which means the buyer has promised to purchase the house as-is, without requiring you to make any renovations or repairs.

You’ll also be able to bypass the staging and cleaning processes. Selling “as is” is perfect if you want the sale completed fast.

A Solution to Your Problems

You may want to sell your property as soon as possible for a variety of reasons. For instance, you may be required to divide the equity after a divorce, or you might be seeking to avoid a foreclosure’s negative impact on your credit.

Perhaps you need to relocate for work and must get there as soon as possible. Perhaps you want the money. Whatever your motive, a cash offer might help you get out of some tough circumstances.

Skip Tedious Negotiating and Paperwork

Do you remember when you first purchased your home? You most likely had a lot of back-and-forth with the seller through the real estate agent over what repairs would be required, who would pay closing fees, and so on. With a cash offer, you might bypass the entire ordeal.

Repairs are not required if selling “as is.” As a result, closing costs are significantly reduced. You can receive the cash payment and call it a day.

No More Dealing With Contingencies

You won’t need to deal with a finance contingency, which allows a buyer to back out if their mortgage isn’t completed. Your all-cash buyer won’t require an appraisal contingency because there won’t be one.

If your cash buyer still wants an inspection as part of their due diligence, the process will be much easier for you. The buyer isn’t going to get an inspection to meet any mortgage criteria, and they’re not going to use it to nickel and dime you either.

Finally, because an investor’s purchase isn’t contingent on the sale of another property, the buyer won’t need to use the home sale contingency which is a safety net that allows the buyer to back out if their present home doesn’t sell within a certain timeframe.

A Quick and Less Stressful Way to Sell Your Home

A cash offer can be the best alternative for homeowners wishing to avoid many of the difficulties of traditional property selling, as it requires no underwriting or haggling, as well as no repairs, cleaning, or staging.

It’s also a good option to get out of a bind, whether it’s a potential foreclosure, a divorce, or a sudden relocation.

Interested in Receiving a Cash Offer for Your Home?

In today’s market, receiving a cash offer on your home is more realistic than in times past. We can help you with your listing and selling needs. We are both local real estate agents and buyers.

This allows you to sell your home quickly and at top dollar when you sell or list with us. You’ll have a variety of options available to you that conventional real estate agents and all-cash home purchasers cannot provide for you.

We’ll be there to help you during every step of the selling process. Contact us, or check out our Compare section to learn more about the benefits of an all-cash sale.