Should I Sell My House for Cash or Wait for a Better Deal?

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  Written by Amy Beardsley

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  Edited by Galina Velgach

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  Reviewed by Steve Nicastro

Cash offers typically come with faster closing times, but it could mean sacrificing profit. If you’re weighing accepting a cash offer, you can:

• Sell for cash if you need to offload your house ASAP and aren’t planning to sink resources to do so
• Wait for a better deal if you have the time and willingness to attract a higher offer that you trust

» Need to sell now? Compare the top companies that buy houses for cash

💰 Consider selling your house for cash if:

You need to sell ASAP 

Cash sales can close in 7–14 days — much faster than traditional real estate sales, which can take up to 85 days (50 days to get an offer and another 35 days to close).

Real estate investors and companies that buy houses for cash and don’t apply for mortgage financing, go through the underwriting process, or ask for inspections and appraisals. Since cash sales typically involve less paperwork, you can also get a shorter escrow period.

Your house hasn’t received many offers (or likely won’t)

Cash home buying companies are often willing to buy types of properties that traditional buyers tend to avoid, such as:

• Areas with high crime, noise, and traffic
• Fixer-uppers or homes that need significant work
• Homes that have already sat on the market for longer than 3 months (because they think something’s wrong with them)

You want to avoid making any repairs

The idea of buying a home that needs large repairs — such as to a leaky roof or old HVAC system — can scare away traditional buyers. However, cash buyers often take homes in as-is condition. They factor repair costs into their offer, though, so you’ll get a lower payout as a result.

Convenience and certainty is more important to you than profit

With fewer steps to closing, cash buyers often streamline the home selling process and are less likely to fall through.

Reasons a cash offer has less risk:

• House buying companies and experienced investors are more confident in closing purchases and rarely renegotiate after signing an agreement.
• Investors usually price necessary repairs and improvements into their offers
• “We buy houses” companies and iBuyers usually accept homes in as-is condition and waive appraisals and inspections — though traditional buyers likely will ask for inspection contingencies.

⏲ Consider waiting for a better deal if:

You already received a lowball offer and aren’t in a rush to sell

Cash buyers might only offer 50–75% of a home’s value. If you think you can get a higher offer, some extra time could improve your odds. Keep in mind that you’ll typically pay 5–6% commission to a real estate agent, plus up to 4% in additional closing costs.

For a chance at selling at (or above) fair market value, you can:

• Make some repairs and improvements before listing.
• Stage your home so buyers can picture the house as their own.
• Take advantage of peak buying seasons for listing and holding open houses.

You can’t verify the buyer’s financing ability 

If you don’t know where your buyer’s money is coming from, you risk delays in closing or liens on the property. You can protect yourself by asking the buyer for a few assurances:

• Proof of funds, such as a bank statement or letter from a legitimate financial institution
• A signed contract with an estimated closing date if your buyer is selling their current home before purchasing yours
• An owner’s title insurance for them to handle any issues after closing — added peace of mind for you and them.

If they refuse, you might be better off waiting for another offer.

Related reading

Are Cash Offers Really Better? Here’s What Realtors Have to Say. In a bidding war, cash is considered king. But do cash offers come with a downside? We asked more than a dozen realtors and investors to weigh in.

Selling a House to an Investor. Selling a house to an investor is a good idea in certain situations, like if you need to sell ASAP. Learn more about the pros and cons.