Is a Cash Offer King? Part 1: The Pros

Is a Cash Offer King? Part 1: The Pros

In an increasingly competitive market, buyers are offering more all cash offers to sellers in an attempt to set themselves apart from the herd. As a seller, this may seem like a no-brainer. There are many benefits to an all cash offer, but there are also drawbacks you need to be aware of in the process that could change your mind as a seller. In this two-part blog series, we’ll discuss both the pros and cons of an all cash offer. First, we will begin with why you would want to choose an all cash buyer.

Fewer Contingencies

The majority of buyers require a mortgage with a financial institution. Because this institution wants to protect its own interests, it will require contingencies like appraisals and insurance. They may also have separate requirements for particular loans such as an FHA or VA. All these contingencies come with their own stack of time-consuming paperwork and more parties coming in and out of the home. With an all cash offer, all you need is proof of funds, making this part of the process go smoother. This means no need to gather tax returns, income statements, proof of employment, asset lists, and credit scores.

You Can Waive Inspections

In order to get ahead of the competition, cash buyers will often waive inspections that are required for buyers working with a financial institution. This saves time and money for the seller. The inspection process, also, creates more disruption in the seller’s home and to their schedule. Typically, with each hurdle, the seller tends to become more invested. This investment of time and energy makes it more difficult to walk away from an offer that may no longer be the best for the seller. With an all cash offer, the time and effort involved does not always create the same frustration.

The Process is Quicker

With fewer contingencies to work through and terms to establish, a cash offer moves as quickly as the parties choose. A lender with various requirements would slow down the process. The less time spent waiting for settlement means fewer mortgage payments for the seller, and less opportunity for things to go wrong. With a cash offer, a closing can be done in as little as two weeks as opposed to the normal one or two months.


Though cash offers can save time and money, they are not the only ones worth considering. There’s more you need to know and will find out in the second part of this series. Can’t wait for the next part of the blog, or need immediate guidance on selling? Contact us at 949-392-6400. We can easily guide you through all the difficult questions that arise in the process of buying and selling a home.