What Is a Cash Offer on a House? How It Works

With a financed offer, the buyer’s lender reviews the borrower and the property. An appraisal, underwriting or property-condition requirements can affect the purchase, and a financing contingency may allow the buyer to cancel under specified circumstances. Not every financed sale is delayed or falls through.

With a cash offer, mortgage underwriting is not required. However, a buyer may still arrange an inspection or appraisal, and the contract may include contingencies or cancellation rights. Title work, liens, estate approvals and other issues can also affect closing. Check the written agreement rather than assuming that cash means an unconditional purchase.

A renovation investor may estimate what the home could sell for after repairs, then allow for repair costs, holding and selling costs, risk and profit. Other cash buyers may price differently. Ask how the buyer assessed your property instead of assuming that every cash offer uses the same formula.

A renovation investor’s offer may be below an estimated move-in-ready sale price because it accounts for the work and costs the buyer expects to take on. Compare the written offer with realistic net proceeds from listing, including repairs you choose to make, commissions, closing costs and ownership costs. Cash alone does not guarantee a better financial result or a completed sale.

Get it in writing. A real offer is a written document with a price, a closing timeframe and clear terms — not a number said over the phone.

Check costs and payment requests. Read the agreement for fees, deposits and the allocation of closing costs. Be cautious of unexpected upfront charges or promises of a guaranteed purchase. Independently verify payment instructions with your attorney or title company before sending money.

Local and reachable. A local buyer who will meet you at the property and answer their own phone is accountable in a way an out-of-state call center isn't.

No pressure. A legitimate buyer gives you time to think, compare and talk to family or an attorney. Anyone pushing you to sign today should raise questions.

You call or submit the form, and we discuss the property and arrange a visit. If we make an offer, it will be provided in writing for you to review. If you accept, a title company coordinates closing on a date agreed in the purchase agreement. Timing depends on title clearance, any required approvals and the agreement’s conditions.

If we look at your situation and think listing with an agent would put more money in your pocket, we'll say so. We'd rather give you honest advice than buy a house you shouldn't sell to us.

This guide provides general educational information, not legal, tax or financial advice. Your obligations and rights depend on the property, transaction and written agreement. Consult an Illinois real estate attorney and other qualified advisers about your circumstances.