How to Sell a House for Cash

What "selling for cash" actually means

A cash sale is one where the buyer pays the full purchase price without a mortgage. The buyer\'s funds come from personal capital, partnerships, hard money loans, or institutional capital — but the seller doesn\'t care which: there\'s no bank in the transaction, so there\'s no mortgage underwriting, no appraisal contingency, no lender delays, and no risk of the deal falling through because the buyer\'s loan was denied at the last minute.

That\'s the speed and certainty homeowners are paying for when they accept a cash offer below retail. Specifically:

• Speed: typical cash close is 7-30 days vs 30-60+ days for a financed sale.
• Certainty: ~90%+ of cash deals close once contracted vs ~80% of financed deals (financing is the #1 reason traditional sales fall through).
• No repairs required: cash buyers typically buy as-is. Traditional buyers expect the home in show-ready condition.
• No showings or open houses: usually one walk-through with the buyer.
• No agent commissions: cash buyers are typically the principal, not represented by an agent expecting a commission.

Who buys houses for cash

Not all cash buyers are the same. The four broad types each have different economics, target properties, and homeowner experiences:

1. iBuyers (Opendoor, Offerpad)

Public companies using algorithmic pricing to make fast offers, then resell the property. They charge a 5-14% service fee on top of the offer. They cherry-pick: newer construction (post-1990 typically), good condition, in core metros they actively buy in. They commonly send inspection-period repair-credit demands that lower the original offer by thousands. Best for sellers with newer well-maintained homes who value brand familiarity. See our Opendoor comparison.

2. Franchise networks (HomeVestors / We Buy Ugly Houses)

National brand with 1,100+ independent franchisees. Each franchisee runs their own playbook — quality and offers vary dramatically by who covers your zip code. They typically pay 50-70% of after-repair value (ARV), reserving wide margin for the franchisee. Buy any condition, including distressed properties. Best for sellers who value brand recognition over offer strength. See our HomeVestors comparison.

3. Direct buyers (Oxbow Home Solutions and similar)

Smaller direct-buyer businesses that operate as principals — buying with their own (or partner) capital, holding or reselling. No service fees. Typically pay 75-85% of ARV, leaving more equity to the seller. Buy any condition. Customer experience depends on the specific buyer\'s reputation. Best for sellers wanting maximum cash with no service-fee deduction. (We\'re in this category — TREC-registered, BBB-accredited, headquartered in DFW.)

4. Real estate brokerages with cash-offer arms (Mark Spain, etc.)

Brokerages that present sellers with two options — a cash offer or a traditional listing comparison — through a licensed real estate agent. Useful if you\'re undecided. Adds complexity and brokerage involvement vs working with a direct buyer. See our Mark Spain comparison.

The step-by-step process

The cash-sale process from a homeowner\'s perspective is typically 5 steps:

1. Initial contact. You reach out (form, phone) or the buyer reaches you (direct mail, online lead). Share basic property info — address, condition summary, your situation, ideal timeline.
2. Property assessment. The buyer walks the property (in person or via video) and pulls comps to estimate after-repair value. Strong buyers will tell you what they\'re estimating and how. Weak buyers will give you a number with no context.
3. Cash offer. Within 24-72 hours, the buyer presents a written offer with closing date options. Compare it to other offers — get at least 2-3 if you have time. Confirm whether closing costs are paid by the buyer or coming out of your proceeds.
4. Contract. If you accept, sign the purchase agreement. The buyer typically posts an earnest money deposit (EMD) at a title company or escrow agent — usually $500-5,000. The contract specifies closing date, due diligence period, and any contingencies.
5. Close. The title company verifies clear title, prepares closing documents, and coordinates final wire transfer. Closing happens at the title company or attorney\'s office. You sign deed transfer, you receive the proceeds via wire or check, the buyer takes possession per the agreed schedule.

Pricing reality — what to actually expect

The honest math: a cash buyer needs room for either rehab + resale profit (flip), or rehab + rental cash-flow margin (hold), or wholesale assignment fee. That margin comes out of the offer to the seller. The math is roughly:

Cash offer ≈ ARV − (rehab cost + buyer\'s margin)

Where buyer\'s margin needs to cover holding costs (taxes, insurance, utilities while owned), selling costs at exit (5-9% of sale price for resale), capital cost, risk premium, and profit. On a $300,000 ARV home needing $40,000 of rehab, a typical direct-buyer offer might be:

$300,000 × 0.78 − $40,000 = $194,000

That\'s using a 78% multiplier (mid-range for direct buyers). iBuyers typically use 95-98% multipliers but charge a 5-14% service fee, so net to the seller is often similar. Franchise buyers typically use 60-70% multipliers, so on the same property they might offer $140-170k.

Use our cash offer estimator for a directional number on your specific property, or our sell or rent calculator if you\'re weighing the cash sale against holding and renting.

Tax considerations

The IRS treats cash and financed sales identically. The same capital gains rules apply, the same Section 121 primary-residence exclusion ($250k single / $500k married joint), the same 1099-S reporting from the title company.

The key tax facts for most cash sellers:

• Primary residence owned 2+ of last 5 years: gain up to $250k (single) / $500k (joint) is excluded from federal capital gains tax under Section 121.
• Inherited property: tax basis steps up to fair market value on the date of death — selling soon after often results in near-zero taxable gain.
• Rental property: no Section 121 exclusion; depreciation recaptured at up to 25%; consider a 1031 exchange if reinvesting in another investment property.
• Foreclosure / short sale: can produce cancellation-of-debt income that\'s taxable in some situations — talk to a CPA before closing.

Full breakdown: Tax implications of selling your house for cash.

Common situations and matched paths

Specific homeowner situations often map cleanly to a particular path:

• Facing foreclosure: sell before the auction date to preserve credit and remaining equity. Direct buyers can typically close in 7-14 days. Foreclosure help · Timeline by state
• Inherited a property: particularly with multiple heirs or out-of-state location — cash sale during probate can simplify the estate. Inherited property · Probate timeline by state
• Going through divorce: a fast, equitable, discrete cash sale (no public listing, no contested showings) often beats a traditional sale. Divorce sale
• Tired landlord: tenants in place, repairs piling up, cash flow negative — direct buyers can purchase with tenants in place. Tired landlord
• Property has tax liens: we can buy with liens in place and settle them at closing from proceeds. Tax liens
• House in poor condition: fire damage, hoarder situation, code violations, foundation issues. iBuyers will decline these. Direct buyers buy as-is. Sell as-is
• Job relocation: tight closing timeline with the new employer. Cash sales can match aggressive timelines. Job relocation

State-specific considerations

Some elements of the cash-sale process vary by state — particularly for sellers in distress (foreclosure) or working through an estate (probate). Our state-by-state references:

• Foreclosure timeline by state — judicial vs non-judicial, typical duration, redemption period, deficiency rules
• Probate timeline by state — probate framework, typical duration, small-estate threshold, court resource
• Tax implications — federal rules apply uniformly, but state inheritance taxes vary (KY, MD, NE, NJ, PA have inheritance tax)

Red flags + scam avoidance

The cash-buyer space attracts both legitimate operators and bad actors. Watch for:

Frequently asked