Should You Make an All-Cash Offer on a Home?


Cash offers are an increasingly popular way for buyers to get a foot in the door on real estate deals. They allow buyers to sidestep the appraisal requirement that often holds back financed bids, and they can offer a faster home sale with fewer obstacles.

In a hot seller’s market, cash offers have become more common than ever before, making them attractive to home sellers who are ready to move on quickly. But they’re not for everyone, and you might have to weigh your options carefully before you decide whether to make an all-cash offer on a house.

The key is to consider how the monetary value of an all-cash deal compares with the monetary value of a financed bid, says veteran real estate coach Jeff House. If a cash offer is significantly lower than market value, you should think twice before accepting it.

If you have a good cash offer, but it isn’t enough to cover the cost of the property and other expenses, don’t be afraid to add escalation clauses. These clauses allow you to raise your offer by a certain amount if a competing buyer makes a higher bid. Must visit


For example, if you’re offering $210,000 on a house and another buyer is making an offer for $125,000, you might add an escalation clause that allows you to raise your bid by $2,000 if the other buyer beats it.

You can also include an earnest money deposit in your offer, which can help you prove to the seller that you have the funds to complete the transaction. This is important because a seller won’t sign a contract that includes a deposit unless they know you have the money in hand to complete the transaction.

While a cash offer is easier to close on than a financed deal, it’s still a complicated process that can be filled with pitfalls. For one, most cash offers require a financial institution to verify your income and bank account. This can help the seller see that you’re serious about purchasing the home and will make the transaction more believable.

In addition, there are many other complexities that can go wrong during the process of a home purchase. Especially if you’re buying in a city like Chicago, you may need to receive zoning survey certification, water certification, association documents and other formalized information about the property.


These steps can add time to the process and cause delays, says Bernhardt. That’s why it’s best to avoid putting your home up for sale until you have an offer in place that shows the potential buyer that you’re committed to closing.

Some people might prefer to sell their homes for less than open market value and then use the proceeds of the sale to finance a down payment on another property. This strategy can be particularly attractive for homeowners who have been struggling to pay off their mortgages and want to free up the money they need to buy their next home.


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