Is an All Cash Offer Right For You?


An all cash offer is when a buyer offers to buy a home outright without financing. This is a common option for both individual buyers (who plan to live in the home themselves) and real estate investors, also known as iBuyers.

All-Cash Purchases Are More Attractive to Home Sellers

A cash sale is less risky for both buyers and sellers. It allows buyers to avoid several steps in the buying process that can prolong the length of time a home is on the market. It also enables sellers to receive more money from the sale of their property.

Often, all-cash buyers will save several hundred thousand dollars that they could invest elsewhere instead of paying mortgage payments on their new home. This can be a major financial benefit for both buyers and sellers, especially as interest rates are expected to increase in 2023. Learn more


In a strong seller’s market, all-cash offers can catapult you to the top of the list and help you get your home sold quickly. But it’s important to know if an all cash offer is right for you and to consider all of the pros and cons before making one.

You Will Have a Much Smoother Closing Process

A typical mortgage transaction is complicated by many contingencies that need to be addressed before the purchase can be finalized. These include inspections, appraisals, and mortgage approvals. By avoiding these, a buyer can avoid these stumbling blocks and streamline the closing process.

You Will Save Thousands in Closing Costs

Another big advantage of making an all-cash offer is that you will save on closing costs. In addition to avoiding the lender’s application review and loan origination fees, you will also save on a home appraisal.

You will Have Less Liquid Assets

Unless you have extensive wealth reserves, an all-cash offer can drain your liquid assets, limiting your ability to meet unforeseen expenses. This is a risk for any type of buyer, but it’s even more of a concern for a first-time buyer.

You Will Have to Show Proof of Your Personal Finances

As a cash buyer, you will need to prove that you have the funds necessary to pay for the property and all the associated costs. This isn’t as easy as it sounds, so be prepared to provide documents to the seller showing how you can afford the home.


You Will Have to Wait for a While Before Closing the Deal

As with any type of real estate purchase, a cash offer can take a bit longer than a traditional mortgage deal. However, this isn’t always the case and there are a number of ways to speed up the process.

The quickest way to do this is by using a real estate technology company that makes all cash offers on behalf of the buyers. Companies like HomeLight, for example, can underwrite and approve a buyer’s offer and then buy the property on their behalf. They can close in as little as eight days and hold the title while the buyer secures financing.

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