Cash Sale Guide

What is a cash home sale?

A cash home sale is a real estate transaction where the buyer purchases the property outright without mortgage financing.

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Because there is no lender involved, cash sales can close faster than traditional financed sales.

Without a mortgage, there's no loan approval process to wait on. That's the main reason cash sales often close in one to two weeks.

Cash sales usually do not require a lender appraisal and carry less financing-contingency risk.

Lenders require appraisals and can back out if financing falls through. Cash buyers skip both, which makes the deal more certain once it's signed.

Cash buyers may include institutional investors, iBuyers, local investment companies, and private investors.

Each buyer type values homes differently, which is why comparing several cash offers usually produces a better result than taking the first one.

Quick answer

A cash home sale is a sale where the buyer pays without a mortgage. It usually means a faster closing, no lender appraisal and less risk of the deal falling through, often in exchange for a lower price.