Tips & Advice
Which Option is Best for You?
When it comes to selling your home, one big decision you'll face is whether to accept a cash offer or a financed offer from a buyer. While both options have their pros and cons, understanding these differences can help you make the right decision based on your needs.
Cash offers are typically much faster. Since cash buyers don’t need to secure a mortgage, you can close the sale in as little as seven days. In contrast, financed buyers need to go through the loan approval process, which can take 30 to 60 days or more. If you’re in a situation where speed is critical—like relocating for a job or needing funds quickly—cash might be your best bet (Opendoor)(RealtyHop).
Cash offers reduce the risk of a deal falling through. A financed buyer might have their loan denied last minute, or issues could arise with appraisals. Cash buyers, on the other hand, have the money ready upfront, providing a more secure transaction(Revel Real Estate)(Opendoor). However, you should still verify the buyer’s funds to ensure they can cover the offer(RealtyHop).
Dealing with a cash buyer usually involves fewer steps, as there’s no lender requiring an appraisal or extra paperwork. The sale is often smoother and involves fewer people, making the process less stressful for you as a seller(Opendoor)(RealtyHop).
While cash buyers can close faster, they often offer less than financed buyers. Many cash buyers, especially investors, may aim to purchase below market value, knowing they can close quickly and with fewer contingencies. If getting the highest price is your top priority, a financed buyer may be willing to offer more(TaxProfessionals.com).
In a hot market, you might receive multiple offers. If speed and certainty are your main concerns, a cash offer could be the way to go. But if you're willing to wait for a higher price, you might consider a buyer who needs financing.
At Frontdoor, we understand that selling a home can be stressful and full of decisions. As a veteran-owned, family-operated company, we aim to simplify this process by submitting a cash offer within 24 hours and closing the sale in as little as 7 business days. Whether you need to sell quickly or you're just looking for a straightforward transaction, we’re here to help you navigate the process.
