So, should you put in a cash offer on a house? Just because you have the means doesn’t necessarily mean it’s the right move. Though there can be advantages to making an all-cash bid, there can be downsides too.

Here are some pros and cons you should keep in mind as you make your decision:

Pros of making a cash offer:

  • They give sellers more confidence
  • They can offer a faster closing period
  • Your credit score doesn’t factor into the process
  • You don’t need a home appraisal
  • You can save money over time (no interest payments)
  • You reduce the paperwork and documentation required

Cons of making a cash offer:

  • It takes a significant amount of money
  • You’ll limit your liquidity and tie up your wealth in one, hard-to-move asset
  • You won’t be able to use mortgage-related tax deductions

You may also want to take into account the overall competitiveness of the market — and the exact house you’re vying for. If the market’s hot and there are lots of other interested buyers, a cash offer may help you jump to the front of the line.

Cash offer considerations if you’re selling a house

If you’re selling a house, you’ll probably encounter a cash offer or two along the way — especially if you’re in an affluent market or a place that’s attractive to investors.

Generally, these are the types of buyers who will offer cash:

  • Investors looking to fix and flip properties or buy them and hold them as rentals
  • Retirees tapping their savings to avoid mortgage financing costs
  • Previous homeowners using their sale proceeds to purchase a new property
  • Wealthy buyers who can afford to put down large amounts of cash
  • iBuying companies that buy your home directly

Pros of accepting a cash offer:

  • There is no risk of buyer financing fall-through
  • The closing process is usually faster
  • There typically won’t be an appraisal
  • You might avoid some contingencies

Cons of accepting a cash offer:

  • It might be lower than other offers
  • The buyer usually isn’t vetted as thoroughly

If you do sell to an all-cash buyer, it’s important to understand the pros and cons and ensure you’re making the best decision for your situation.

Venture One Realty has recognized that Connecticut Homeowners need and want a way to keep more of their hard earned equity when selling their home. Our Clients save Thousands of Dollars without sacrificing the services that are critical to maximizing the sale price of their home. We offer all the same MLS exposure, marketing tools, technology, quality of service, expertise, and personal attention as the Other Realty Companies but without the costly Real Estate Commission. You pay only 1%. We are a full-service Real Estate Agency that will manage the entire home selling process from listing to closing. You get everything you would expect from a traditional Real Estate Agent but with the added benefit of working with a technology-enabled and customer-focused team of Agents. Our results speak for themselves.