Is It Illegal To Sell a House For Cash?

Some people consider using all cash to make a large purpose comes across as shady or, quite possibly, criminal. You might picture the buyer walking into the house for sale with duffel bags stuffed with cash. If this happened, of course, it would raise some eyebrows. In what crooked and nefarious way did the buyer get that kind of cash? Truth be told, this is not how an all-cash sale of a house goes down. Odds are, in most instances, these sentiments are way off base. Typically, an all-cash sale is when a buyer does not need to secure financing to purchase a house. So, how does this all cash purchase of a house work?

“Within hours after submitting my home information on their site I got a call back and an offer to my house. I ended up selling the house 2 weeks later. Thanks for taking the time to listen to my concerns and guiding me through this stressful time in my life.”


Aurora, CO

How Can You Purchase A House For Cash Legally?

If you are looking to pay cash for a house, you will need to have the funds in your bank account. In other words, you can not pull out your credit card and use it to buy a $300,000 house! With today’s technology, there is also no need to withdrawal the cash and carry it to the purchase of the house–perhaps in those duffel bags. Most cash purchases for houses involve wiring the amount needed from the buyers account to the sellers account. Now, you’re probably wondering, where does someone buying with all cash get those kinds of funds? Again, in almost all cases, the money is not obtained illegally, but through legitimate ways.


Here are the top reasons why many people are flush with cash:

  • Equity built up from the sale of other real estate.
  • The cashing in of investments, such as stocks and bonds.
  • Entrepreneurs and business owners liquidating their companies for cash.
  • Business owners winning big through an IPO, or initial public offering for stock in their company.
  • Cryptocurrency cash-outs.
  • Combinations of all of the above.

There are many more ways people can legally gain access to large amounts of cash, but the above ways are the most common.

“Fantastic Company, they were there to answer my many questions and they work quickly to resolve some lien issues that came up before closing. I will continue to use them in the future and also refer my friends and family to them.“


Centennial, CO

What If You Don’t Have That Kind Of Cash?

Another way home buyers have been making all cash offers without actually having the cash is hand, is by using real estate technology firms and lenders to make the offer on their behalf. These companies will evaluate the property and the buyers to see if they are a good fit. If so, they will basically play the middle man, purchase the house for cash, and allow time for the actual buyers to get a loan for the house.


Should You Accept An Offer That Is All Cash?

As a seller, there are a lot of positives to accepting a cash offer. The odds of the buyer falling through and the sale not moving forward are slim to none. Usually, an all cash buyer needs to prove enough funds to move forward with the purchase. As a seller, if you know the buyer has the money, you can feel completely comfortable selling your property for all-cash.

Potential Positives
  1. Savings on fees. A buyer won’t have to deal with loan origination fees, lender fees, and other closing costs associated with a traditional loan.
  2. Quicker to the close. Cash purchase tend to happen much faster than with those needing to seek financing.
  3. The big one – No interest fees. Over the length of a 30 year mortgage, the homeowner ends up paying potentially hundreds of thousands of dollars. This is the cost of doing business without cash–but only for the buyer. The seller will get the cash, and the only headache will be taxes, but that’s another article.
  4. Better pricing? It is quite possible a seller will be willing to lower the price of the house if the buyer is bringing all cash to the table.


Potential Negatives
  1. Lower pricing. As mentioned earlier, one negative for the seller is that your buyer may be looking for a better price if paying cash.
  2. Investment money stuck in the house. As a cash buyer, you will have a large amount of money tied up in the house. If the housing market goes down, so does your “investment.”
  3. Missing out on tax breaks. There are a lot of tax advantages when buying with a mortgage, but with the 2017 tax overhaul, these plusses have been reduced a bit.

“I honestly never thought that selling a fire damaged house would’ve been so easy, fast and stress free..”


Denver, CO

Cash Is And Always Will Be King

With all of the advantages for both the buyer and the seller, it is obvious why both sides prefer completing an all-cash deal for their real estate transactions. If you have the funds and don’t mind tying up those funds in your home, it is a good move to move in all cash for your home purchase. And now you know, buying a house with all cash is perfectly legal–just save the duffel bags for the gym.

If you would like to see exactly how much we can pay for your house, just fill out the short form below.

We Buy Houses All Over Colorado


“EXCELLENT!! Very friendly and accommodating.”


Aurora, CO

“It was the easiest sale I’ve ever made. The offer was fair and I didn’t have to do anything. I’ve recommended it to a couple of friends.”
Pierre Villalobos

“I had an excellent experience, and recommend any person that needs to sell, to call them. I have no complaints. Everything I was told it was going to happened, it happened. Exact date, like I was told. Thank you!”

Peter Smith

“I wanted to take the time to thank you and your team very much for the purchase of my mother’s home. You guys kept things simple and to the point, and closed in a short period of time, which made my mother feel at ease with the whole situation. Thank you again for all your hard work and making everything come together quickly!”

Richard Williams

Want to see how much we can offer for your house?


We are a real estate investment company that buys, rehabs, and then sells houses at a profit. Offers are made to sellers based on fair market value and repairs needed. “NeedToSellMyHouseFastinDenver” will do everything possible to bring forth the highest possible offer to give the seller the most benefit from dealing with a fast sale.

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Need To Sell My House Fast In Denver

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9888 W Belleview Ave #5117
Denver, CO 80123