How to sell your house for cash

Cash sales made up 39% of home purchases across the U.S., according to the 2024 Home Sales Report from ATTOM. That’s a staggering number of buyers, both individual and institutional, making cash offers for homes in a competitive real estate market. 

Cash offers can be appealing to sellers because they ensure the deal will close quickly. Yet, cash offers for homes often come from investors or homebuying companies who may not pay top dollar for your property. Make sure you understand the available options if you need to sell your home fast but don’t want to get taken advantage of. 

Learn what a cash sale is, when it makes sense, how to find a reliable cash buyer, the benefits and drawbacks, and what the process is when you’re selling your home for cash.

What does it mean to sell your house for cash?

Selling your house for cash means there’s no loan recorded when the home is purchased. The buyer can pay for the property in full without getting financing from traditional mortgage providers, such as a bank, credit union or mortgage broker. Usually, homebuyers use actual cash (as the name implies), but some might use cash-offer companies that loan prospective buyers the funds upfront. 

You can typically close faster with a cash sale, but the house might sell for less than it would to homebuyers using traditional financing. This is usually the case if the buyer is an investor who wants to fix up the house to sell, or to compensate the new homeowner for repairs that they’ll have to make later. 

When does it make sense to sell your house for cash?

If your selling your home to a homebuyer who’s using traditional financing, it can take longer and there might be additional requirements you have to meet. If you’re hoping to sell your home quickly while making minimal fixes to the property, selling for cash might be the way to go.

“For many people, it makes sense to sell your house for cash if you need to sell quickly, you are selling a property that needs significant repairs, or you want more peace of mind that the sale will go through,” said Nick Disney, a cash investor and owner of Sell My San Antonio House. 

“Selling your house for cash can be much faster because you can skip much of the underwriting process buyers must go through when getting a loan,” Disney added. 

He said sellers can also avoid concerns about the house appraising for enough or making repairs required by the lender. These can slow or derail a traditional sale. 

“Cash offers are also much less likely to fall through because the buyer has all the money upfront and is not dependent on anyone else approving the sale.”

How do you find a reliable cash buyer?

Not all cash buyers are the same, but there are a few tips you can use to find a reliable cash buyer:

• Ask for proof of funds: “If the buyer cannot show you that they have the cash available, then you should look for someone else,” Disney said. 
• Look for reviews of homebuying companies: If you’re looking at selling to a homebuying company, look for reviews on Google, the Better Business Bureau, Trustpilot, and forums like Reddit. What has the experience been like for other sellers?
• Ask for earnest money: Disney recommended asking for at least 1% of the sale price in earnest money. “A serious cash buyer will be willing to put up significant earnest money to show that they are serious about following through with the sale,” he said. 

What are the benefits of selling for cash?

If you’re in a position where selling to a cash homebuyer makes sense, these are the kind of benefits you can expect: 

• Quick house sale: Cash buyers don’t have to meet the underwriting requirements that buyers with a loan do. Closing on a conventional loan takes 43 days on average, according to ICE Mortgage Technology. Selling for cash can take weeks off the time it takes to close. 
• May save money: Selling your home for cash to an investor or iBuyer can help you avoid real estate agent commissions, but you may end up paying a service fee to an iBuyer 
• May avoid appraisal issues: When you sell your home for cash, you don’t have to depend on a lender to approve the loan. For example, the sale will go through, whether or not the appraisal comes in low. 
• As is: You can avoid repairs and other costs if you sell the home for cash. 
• No open house or selling hassles. If you sell to an investor or iBuyer, you may be able to avoid the process of selling your home: no open houses, no cleaning, no decluttering, just negotiation and a contract. 

What are the drawbacks of selling for cash?

Before deciding to sell your home for cash, make sure you weigh some of the drawbacks: 

• Lower offer: Cash offers are typically lower to help the buyer mitigate the risk of buying your property without contingencies. If the home needs repairs and you’re unwilling to make them, you’ll likely sell at a lower price. 
• Scammers abound: When selling to a cash buyer, it’s also possible to get taken advantage of by a scammer or opportunist. A recent ProPublica investigation found cash homebuying companies took advantage of homeowners who needed to sell quickly by offering far below market value and using deceptive tactics. 
• Fees can be high: If you sell to an iBuyer, you’ll pay between 8% and 12% in fees, which can eat into your profits. For a $250,000 house, the fees could cost between $20,000 and $30,000. You can avoid these fees if you find a cash buyer yourself.
• You could bypass buyers: You can sell to an iBuyer or an investor, but your pool of buyers will be limited. Some buyers might not find a cash-only home purchase appealing or feasible if they need to finance the purchase.

What is the process of selling a house for cash? 

The process for selling a home for cash is a little different than a traditional real estate transaction. Here’s how to go about it:

Step 1: Decide how you’re going to sell it

At this stage, you’ll want to figure out who you’re trying to sell your home to, and whether you’ll need a listing agent. Some options you have include:

• Sell directly to an iBuyer for cash
• Sell directly to a real estate investors for cash
• Sell directly to a private buyer for cash
• Sell on the open market via a listing agent and ask for cash offers

There are some steps you can skip if you decide to sell it directly to an investor or iBuyer, but the tradeoff may come with lower profits from the sale of your house. 

Step 2: Estimate the fair market value of your home

If you know how much your home is worth, it can help you come out ahead in negotiations, even if it needs repairs or you need to sell the house fast.

The best estimates for the market value of your home will come from a formal appraisal. If you don’t want to do that, you can also ask for a comparative market analysis (CMA) from a real estate agent, or find an online tool on homebuying websites like Zillow, Realtor.com or Trulia.

Step 3: Find a buyer

Finding a buyer starts with marketing, which helps get your property seen by as many buyers as possible. If you’re working with a real estate agent, they can market the property for you. Real estate agents and REALTORS® typically handle taking pictures, video, posting on a multiple listing service (MLS) and scheduling open houses. They should also advertise that you’re looking for cash offers to attract the right buyers. 

If you’re selling it yourself, you’ll need to find prospective homebuyers on your own. Some techniques to reach more buyers include:

• List on a homebuying website
• Pay a flat fee to list on the MLS
• Hold an open house
• List on a for sale by owner website 
• List on an online investor marketplace
• Go to investor conferences or forums

Step 4: Review the offer and verify funds

Once you receive a promising offer, review the details carefully. The proposed sale contract should have the terms spelled out, including sale price, earnest money, contingencies (if any) and closing date. You should also verify the funds before taking your property off the market. 

“As a seller, you want to verify proof of funds for cash buyers in order to avoid taking your property off the market, losing out on other offers and then find out toward closing that your buyer does not actually have the cash to close,” said real estate investor Grant Cardone.

Step 5: Buyer completes due diligence

The buyer may complete an inspection and order a title search on the home. If you’re selling the home as is, you typically aren’t required to make repairs, but you can decide if you’re willing to negotiate based on the inspection results. 

Step 6: Close on the loan and receive funds

After the buyer has performed their due diligence and the title company has cleared you to close, you’re ready to receive your funds. A cash buyer can wire you the funds directly or bring a cashier’s check to closing. Any costs you need to cover — such as transfer fees or agent commissions — will be taken from the proceeds of the sale before the funds are deposited in your bank account. 

Sell your house for cash FAQ

How do I verify a cash buyer’s legitimacy?

Sellers can ask for proof of funds, negotiate for a substantial amount of earnest money, and look for online reviews of homebuying companies to verify a cash buyer’s legitimacy. If the buyer is an investment company, make sure it’s professional and has references from past deals you can verify. If the buyer is an individual, make sure they’re not overly pushy or eager (such as sending a copy of their bank statement before they’ve made an offer).

Can I sell my house for cash if it needs repairs?

Yes, you can sell your home for cash if it needs repairs. Cash offers are often made as is, which means the seller doesn’t need to make repairs or alterations to the home. They’re often made by investors or iBuyers who offer a lower price to account for potential repairs that need to be made. This is one of the appeals of selling for cash compared to traditional mortgage options. The Federal Housing Administration (FHA), for example, sets standards for the condition of homes that can be purchased with an FHA loan. If a home doesn’t meet the agency’s requirements for safety, security and soundness, the loan won’t be approved. 

Are there any fees when selling my house for cash?

There are fees when selling your home for cash. In addition to closing costs, you’ll have selling fees, which are different depending on the method in which you sell your home. If you list with an agent, you’ll likely pay between a 5% and 6% commission. If you sell to an iBuyer, fees are usually around 8% and 12%. Selling to a cash buyer yourself (such as when you sell to a family member) doesn’t come with selling fees. 

How quickly can I close when selling for cash?

Selling your home for cash will ensure the fastest closing time — but only if your buyer is fully vetted and there are no title or property issues. Cash transactions with a full title search and recording can take as little as a week.