There are some circumstances where you may need to sell your home to a cash buyer—for instance, if your house is distressed or in need of major repairs, your lenders have started the foreclosure process, you need a quick exit strategy, or you simply don’t have the time and resources to worry about staging and selling your house on the traditional real estate market. In these cases, getting an offer from a local cash home buyer is a fast and easy way to sell your property.
However, selling your house for cash means you will likely not receive market value on your home. Instead, you will benefit from the quick, stress-free process and enjoy the reduced fees associated with cash buyers.
- What Is a Cash Offer for a House?
- What Is a Cash Home Buying Company?
- How Do Cash Offers on Homes Work?
- What Are the Benefits of Selling Your House for Cash?
- How Much Do Cash Home Buyers Pay?
- Cash Offer Calculator: A Starting Place for Homeowners
- How to Determine a Fair Cash Offer for Your Home: A Closer Look
What Is a Cash Offer for a House?
A cash offer refers to the type of payment a buyer proposes—paying the full purchase price upfront without relying on a lender. For the seller, it means the sale isn’t tied to mortgage approval or loan processing timelines. Because the funds are ready to transfer at closing, cash offers often give sellers greater certainty and a quicker path to completing the sale.
What Is a Cash Home Buying Company?
A cash buyer is an individual or company with the funds to make an all-cash offer on your house without going through the financing process. Cash home buying companies purchase houses directly from homeowners instead of through the competitive real estate market, so there are fewer contingencies, no appraisals, and less risk of a deal falling through due to financing.
There are, unfortunately, many predatory cash buying companies looking to scam homeowners. To avoid working with an unreliable or dishonest company, find a local, trustworthy cash buyer that wants to invest in your community.
How Do Cash Offers on Homes Work?
When you accept a cash offer, the buyer provides proof of funds and skips the lengthy loan process. After a walkthrough or quick inspection, the buyer makes a written offer, which you can review and accept without dealing with appraisals or financing contingencies. Once both parties sign the purchase agreement, the sale can close in as little as a week—far quicker than a traditional sale—because there’s no waiting for mortgage underwriting or bank approval. This streamlined approach is what makes cash offers attractive for sellers seeking speed and simplicity.
What Are the Benefits of a Cash Home Offer?
Cash home buying companies streamline the selling process for homeowners. If you sell your house for cash, you can expect several benefits:
- A fast closing process (as little as a week)
- Fewer contingencies
- Sell in any condition
- No cleaning, staging, repairing, or upgrading required
- Less stringent inspections
- Guaranteed timing
- No appraisals
- Simple, low-stress process
- No obligation offer
- Can help prevent foreclosure
- Save money on repairs
Sell your house as-is to a cash buyer and get a fair offer on your home.
“One of the benefits of selling your house for cash is there are no contingencies or surprises in the sales process. Offers contingent on financing include dependencies on home inspections, appraisals, and the lender underwriting process. Home inspections may reveal thousands of dollars in repairs that need to be completed or repair allowances that need to be granted for the deal to go through. If the property appraisal comes in lower than expected, the selling price may need to be lowered or the buyer may need to be willing and able to come up with extra cash to purchase the home. Even if the inspection and appraisal processes go smoothly, there are still a myriad of things outside the seller’s control that can cause a deal to fall apart in the lender underwriting process. By selling your house for cash, you can eliminate all these variables.”
"Convenience, ease of transaction, no realtors, no appraisers, no inspections, quick close."
How Much Do Cash Home Buyers Pay?
The offer a cash home buyer will make on your house depends on several factors, including the buyer you work with, the neighborhood you live in, the current real estate market, and details of your property.
Keep in mind that an all-cash offer will likely be less than what you could receive after selling on the open market. However, cash home buyers can offer a fast, easy selling process with reduced fees, which is worth a slightly reduced offer in many circumstances.
Cash Offer Calculator: A Starting Place for Homeowners
It’s difficult to calculate the offer you can expect on your home from a cash buyer because there are so many factors at play. Some cash home buying companies will pay as little as 50% of the after-repair value (ARV) of your home, while others may offer up to 85%. Use the 70% ARV formula (estimated sales price x 70% - repair costs = max offer) to see what you might expect.
How to Determine a Fair Cash Offer for Your Home: A Closer Look
Use the 70% Rule
Selling your house for cash is the easiest way to turn your equity into cash. Selling your home for cash, however, means you're not going to get the full market value for your home. The point of selling your home for cash is that the investor buying the home will also be investing their time and money into repairing the home. They are not going to give you a full market price offer for your home. Instead, they will likely give you some variation of the "70% rule". Here is the formula that a real estate investor typically uses:
ESTIMATED SALES PRICE X 70% – REHAB COSTS = MAX OFFER
Typically with this calculation, the real estate investor will gross 30% in additional income. This money will go toward holding costs, insurance, overhead, and other expenses. Their maximum offer will typically yield around an 8-15% profit after all other expenses are taken care of.
Using the formula above, assume you are selling a house that needs $40,000 in rehab to be able to sell it for $100,000. The maximum offer you should expect would be:
100,000 X 70% – 40,000 = $30,000
You would end up receiving a $30,000 cash offer for your home. This may seem low, but the real estate investor needs to have the funds to remodel the home and sell it for a modest profit.
The benefit of this arrangement is that you get cash pretty quickly, but if you have put some time and money into remodeling the home, you may want to get the home valued by a home appraisal service. They can determine the full market value for your home, which is likely higher than what a cash offer would be. From there, you can consider selling your home on the market or selling your home for cash.
Manage Your Expectations When Determining a Fair Cash Offer
It is very common for home sellers to overestimate the value of their home based on their own sentimental attachments to the home. It's important, however, to keep in mind that location is a big factor that will determine a fair cash offer for your home. If your home is in a good and highly-coveted neighborhood, you're more likely to receive a higher cash offer for the home.
The real estate investor must also take into consideration some other factors, such as the estimated renovation costs, to determine a fair cash offer for your home. Even if you replaced your carpet just a few years ago, that doesn't mean you're going to get a better cash offer for your home. Certain systems, such as heat pumps and electrical systems, don't last forever and need to be replaced every 12-15 years.
Closing Costs on a Cash Sale: What to Expect
When you sell a home for cash, the process is typically simpler—and that includes the closing costs. While you won’t completely avoid fees, most sellers find the expenses far lower than with a traditional mortgage-backed sale.
"Can close quickly with no home repairs, no closing cost, and no agent fees."
Why Closing Costs Are Lower
Without a lender involved, many of the charges tied to a mortgage simply disappear. There’s no need for loan origination fees, underwriting, or mortgage insurance. That alone can save thousands of dollars.
"The speed and efficiency of the transaction. When you sell a home for cash, you can often bypass the lengthy process involved in traditional real estate transactions."
Common Closing Costs in a Cash Transaction
Even with a streamlined process, a few costs remain. These may include:
- Title search and insurance – Ensures the property’s title is clear of liens or disputes.
- Recording fees – Paid to the county to officially record the sale.
- Attorney or escrow fees – For managing contracts and ensuring funds are properly transferred.
- Prorated taxes or utilities – Covers any outstanding amounts up to the closing date.
Who Pays the Fees
Cash buyers often cover most—sometimes all—of these expenses as part of their offer. Others may split the costs with the seller. Always request a detailed breakdown from each buyer so you can compare offers on a true “net to seller” basis.
Tips to Reduce Your Costs
- Get written estimates of all fees in advance.
- Work with a reputable title company or real estate attorney to avoid surprise charges.
- Compare multiple offers to see which buyer covers the most expenses.
By understanding which costs are negotiable and who is responsible for paying them, you’ll know exactly what to expect when closing day arrives.
How Much Lower Are Cash Offers on Homes?
Cash offers tend to be lower than traditional financed offers, but the tradeoff is speed and certainty.
Typical Price Range
In many markets, cash offers are about 15–30% below market value. This range varies depending on:
- Local housing demand
- The property’s condition
- The cost of needed repairs or updates
- How quickly the buyer wants to close
Why Cash Buyers Pay Less
Investors and companies that buy for cash often factor in:
- Repair and renovation costs to bring the property up to market standards.
- Holding costs such as taxes, insurance, and utilities while they own the property.
- Risk of market shifts while preparing the home for resale or rental.
"Selling your home for cash eliminates a lot of the headaches leading up to closing, and shortens the time to get to closing."
When a Lower Offer Might Make Sense
A discounted offer may be worth accepting if:
- You need to relocate quickly.
- You want to avoid the uncertainty of a buyer’s financing falling through.
- The house needs major repairs you’d rather not handle.
Balancing Price & Convenience
While you won’t get full market value, the fast, guaranteed sale can be worth more than a higher price once you factor in agent commissions, months of waiting, and repair expenses.
How to Get a Cash Offer on Your House Fast
If you’re ready to move quickly, a few simple steps can help you secure a cash offer in days rather than weeks.
1. Identify Reputable Buyers
Start with local cash home buyers or well-reviewed investment companies. Check online reviews, ask for references, and verify they have proof of funds.
2. Share Property Details
Provide basic information about your home—square footage, condition, and recent upgrades. The more details you give, the more accurate their initial offer will be.
3. Schedule a Walkthrough
Most cash buyers will want to see the property in person. This helps them estimate any repair costs and finalize their offer.
4. Review the Written Offer
A legitimate cash buyer can often give you a written offer within 24 hours of the walkthrough. Compare multiple offers to find the best fit.
5. Close on Your Timeline
If you accept, you can typically close in as little as 7 to 10 days. A title company or attorney will handle the paperwork and transfer of funds.
Extra Tips for Speed
- Gather key documents like your deed and recent tax bills ahead of time.
- Make sure utilities and property taxes are current.
- Be ready to negotiate closing dates to fit your schedule.
By preparing in advance and working with trustworthy buyers, you can move from initial contact to closing with minimal stress—often in under two weeks.
The Bottom Line of a Fair Cash Home Offer
The bottom line is that if you're considering selling your home for cash, location and estimated rehab costs will be the main factors that will determine the cash offer you'll receive. If you have completed additional renovations and your home is in a coveted location, you will likely receive a higher cash offer for your home.
The best way to determine a fair cash offer is to contact an experienced cash home buyer and ask for an estimate.
Cash Offers for Your House: FAQs
Why would a seller choose a cash offer if it’s lower?
Speed and certainty. Cash sales often close in days instead of months and avoid financing fall-throughs, appraisals, and lender delays.
Are cash sales always “as-is”?
Usually, yes. Cash buyers expect to handle repairs themselves.
Can a cash buyer back out before closing?
Yes, just like any buyer. That’s why a signed purchase agreement with a clear earnest money deposit is essential.
Do I still need a real estate agent for a cash sale?
Not necessarily. Many owners work directly with investors or home-buying companies, but an agent or attorney can help review paperwork.
How quickly can closing happen with cash?
If the title is clear, it can be as fast as 7–10 days.
Will I pay capital gains tax after a cash sale?
Tax rules don’t change because the buyer pays cash. Capital gains depend on your profit and how long you’ve owned the property.
What proof of funds should I request?
Ask for a recent bank statement or a letter from the buyer’s financial institution verifying available funds.
Can I negotiate closing costs in a cash transaction?
Absolutely. Although cash buyers typically cover them, you can request a breakdown and negotiate who pays each line item.
What if I have a mortgage balance
Your lender is paid off from the sale proceeds at closing. Any remaining cash after the payoff is yours.
Do cash offers affect my credit score?
No. The transaction doesn’t involve new credit or loan applications, so your score remains unchanged.
Get a Fair Cash Offer & Sell Your Home for Cash at New Again Houses
At New Again Houses, we buy, fully remodel, and sell homes to new families to enjoy for years to come. Unlike other cash buyers, we will never sell your contract or your information—so you can trust us to restore your old home and give it the love it needs.
We’ve been in the business of helping local homeowners sell their homes since 2008. Based in Bristol, TN, and serving homeowners nationwide, the New Again Houses team would love the opportunity to invest in the community by making your older home new again.
Together, we transform not only houses but also the lives of our clients.
Are you ready to sell your house, get a cash offer, and close in a matter of days? Contact us today to get started.
