A cash buyer made an offer on your house. No mortgage contingency. No appraisal. Closing in 21 days. It sounds perfect until you realize you don’t know what you’re signing up for.

Cash offers move fast. That speed comes with tradeoffs you need to understand before you accept anything.

The Price Is Always Lower

Cash buyers don’t offer market value. They offer what the property is worth to them as an investment. If your house would sell for $350,000 to a traditional buyer, a cash offer lands at $280,000 to $310,000.

The discount pays for their risk. They’re betting the house will appreciate or produce rental income. They’re factoring in holding costs, potential repairs, and the hassle of finding tenants. You’re paying for their convenience and speed.

That’s the trade. Fast sale, lower price. Pick one or pick the other, but understand you’re choosing between them.

What That Price Includes and What It Doesn’t

Cash buyers purchase the property as-is. The price reflects current condition. If the roof leaks, the price drops. If the foundation cracks, the price drops more.

They typically don’t ask you to fix anything. They don’t request repairs. They don’t demand a new roof or foundation work. They buy it broken and fix it themselves.

What they do include: purchase price, closing costs they pay, and sometimes a small amount toward your realtor commission if you have one. What they don’t include: your costs to prepare the home, any repairs, or staging.

Review the offer letter carefully. Some cash buyers charge document fees, title fees, or recording fees. Ask who pays what before you sign.

They Don’t Need an Inspection, But You Should Still Do One

Cash buyers skip inspections. They assess the property themselves and factor repairs into their offer. You don’t owe them anything.

That doesn’t mean you should skip one. Hire an independent inspector for $300 to $500. You need to know what’s actually wrong with the house. A major foundation issue isn’t something you want to discover after closing.

The inspection protects you. It gives you documentation of the property’s condition. If disputes arise later, you have proof of what was there when you sold.

Walk through with the inspector. Listen to what they say. Ask questions. Write down everything they flag.

The Timeline Is Real

Cash offers close fast. 21 days is standard. Some close in 14. A few stretch to 30.

This speed requires action from you. You can’t sit on the offer for a week thinking about it. You need to move now.

Title work happens immediately. The buyer’s attorney orders a title search right away. If liens exist, they surface fast. You need to address those immediately.

Funds verification happens upfront too. A reputable cash buyer provides proof of funds before making an offer. If they don’t, walk away. Empty promises delay closings by weeks.

Your timeline for packing and moving compresses. If you have 21 days to close, you have 21 days to be out of the house. Plan accordingly. Hire movers early. Don’t wait until day 19.

Beware of Contingencies Hidden in the Language

Cash offers say “no contingencies.” Read the fine print anyway.

Some cash buyers include inspection contingencies. They reserve the right to renegotiate if they find problems during their walk-through. That’s not a cash offer. That’s a lowball offer with room to negotiate down further.

Others include title contingencies. If a lien emerges, they want a price reduction. Again, not truly cash.

True cash offers come with no outs. The buyer commits to the price regardless of what inspections reveal. Ensure that’s what you’re getting.

Ask your attorney to review the offer letter before you sign. That’s not paranoia. That’s due diligence. They spot language that protects the buyer and leaves you exposed.

The Earnest Money Deposit Tells You Something

Earnest money is the deposit the buyer puts down to show they’re serious. Cash buyers typically deposit 1 to 3 percent of the purchase price.

A $300,000 offer with a $3,000 deposit signals a serious buyer. A $300,000 offer with a $500 deposit signals someone testing the waters without commitment.

Larger deposits mean they’re committed. They lose that money if they walk away. It motivates them to close.

Ask what happens to earnest money if they don’t close. Does it go toward your closing costs or theirs. Does it disappear if they back out. These details matter.

The Buyer’s Ability to Close Matters More Than Anything

Not all cash buyers have liquid funds. Some get money from investment partners. Some borrow against other properties. Some promise funds from loans not yet approved.

Proof of funds matters. Ask for bank statements showing the cash in their account. Ask for letters from their lender if they borrowed. Verify everything.

A buyer who can’t actually close isn’t a buyer. They’re a time waster. You lose weeks only to learn their funding fell through. You’re back on the market with fewer days left in the season.

Call their bank if necessary. Request verification directly from the financial institution. Most banks accommodate this request when funds are large enough.

You Still Need a Real Estate Attorney

Some cash buyers tell you an attorney isn’t necessary. They handle everything. You just sign.

That’s a warning sign. You need separate legal representation. An attorney protects your interests, not theirs.

Your attorney reviews the purchase agreement. They ensure title transfers properly. They confirm all liens are cleared. They coordinate the closing. They make sure you actually get paid.

This costs $500 to $1,500 depending on complexity. Spend it. It prevents costly mistakes.

Know Your Capital Gains Tax Situation

Selling fast doesn’t mean ignoring taxes. If you’re selling an investment property or inherited house, you might owe capital gains taxes.

A stepped-up basis applies to inherited properties. The property’s value resets to market value on the date of death. If your parent bought it for $50,000 and it’s worth $300,000 when they die, your basis is $300,000. You owe taxes only on appreciation above that.

An investment property you’ve owned long-term gets long-term capital gains treatment. Your tax rate is lower than short-term rates. If you’ve owned it less than a year, short-term rates apply. That hurts.

Talk to a tax professional before you accept the offer. Know your liability. It changes whether accepting the cash offer makes financial sense.

Get Everything in Writing

Verbal agreements mean nothing. The offer letter is your contract. Every condition goes in that document.

Walk away if the buyer resists writing things down. Professional investors document everything. If they balk at committing terms to paper, they’re not professional.

The written offer includes: purchase price, closing date, inspection contingencies if any, who pays which fees, what’s included in the sale, and remedies if someone breaches the contract.

You don’t sign anything you haven’t read. You don’t agree to terms you don’t understand. You get an attorney to explain anything confusing.

The Bottom Line

Cash offers close faster. The price is lower. The tradeoff is worth it if you need to sell quickly. It’s a bad deal if you have time to wait for traditional buyers.

Know the numbers. Verify the funds. Get an attorney. Read everything twice. Then decide.

Speed is valuable only when it aligns with your situation. Don’t let it push you into a bad decision.