What is a Cash Offer on a House?

Most people are familiar with the term “mortgage”. This is when someone gets a loan to purchase a house or other real estate. But, what if you didn’t need to borrow any money? What if you could just pay for the house outright? That is called a cash offer. It is important to know what a cash offer is, but it’s more important to know why a cash offer might be the best thing to happen to a home seller.

“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

Are Cash Offers Common?

It seems that spending hundreds of thousands of dollars in cash on a home would be extremely rare, but, believe it or not, it happens more often than you would think. According to Bloomberg, in the first four months of 2021, 30% of home purchases in the US were all cash. These buyers range from traditional buyers, investors, house flippers and even iBuyers, or “instant buyers” who are tech-savvy buyers looking to flip houses. Of course, the odds of finding an all cash buyer to buy your home depends on your location as some parts of the country have more cash house buyers than others.

Are There Advantages To Accepting A Cash Offer?

Yes, there are advantages with cash offers, for both the seller and the buyer.


Advantages of a cash offer for the seller:

  • Usually, a cash offer is stronger than an offer involving financing for the buyer.
  • Cash offers tend to close much more quickly than conventional purchases using loans. This reduces your stress and worry.
  • Accepting a cash offer as a seller will save you a lot of money. The seller can avoid getting an appraisal, an inspection, and dumping a ton of money into minor repairs the seller will never get to appreciate.
  • If a buyer brings an all-cash offer to the table, there is less of a chance the offer will fall through. If that happens, you as the seller will be back to square one, which means more marketing, more open houses, and all the inconveniences that come with selling a house.
  • If an appraisal comes in too low, if the buyer can not come up with the deposit, or if the buyer can not secure enough financing are all potential reasons why the sale could fall through. By accepting a cash offer, you can avoid these speed bumps and, let’s face it, sale-ending pitfalls.

“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

Advantages of a cash offer for the buyer:

  • With the power of cash, more properties could be available to you as compared to those using FHA or USDA loans. Cash means fewer restrictions.
  • The money savings from using cash is quite substantial. Appraisal fees, a multitude of loan fees, and credit checks are just a few things that can be avoided by buying with cash.
  • If, as a buyer, you go straight to the homeowner, there’s a good chance you could avoid paying realtor fees. This will save you thousands of dollars in commissions.
  • There’s a strong possibility the seller will be willing to accept a lower offer on the house if they see the buyer has the funds to buy the home outright with cash.
  • Most buyers agree that the quicker the deal can close, the better. By offering all cash, there is a lot less red tape involved meaning the purchase will be completed much more quickly than using financing.
What should I look out for when it comes to cash offers on a house?

The advantages to a cash offer listed above are just a few of many, but what are the disadvantages? There are some, but they are few and far between.

FOR THE SELLER, cash offers are typically lower when compared to offers from a buyer seeking traditional financing. These cash buyers understand their value. They also understand that they might be the only cash offer on the table, and they can use this to their advantage. Also, the cash buyer might use their position to push you as a seller to make concessions you might normally not make with a traditional loan-type buyer.

Buying a house all-cash can be risky FOR THE BUYER. The seller may want to forego a home inspection which could lead to maintenance issues down the road. As a cash buyer, you will have a large amount of capital tied up in one investment. Also, you will lose out on significant tax advantages that come with owning a home with a mortgage.

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


Denver, CO

Does accepting an all-cash offer add up?

There are many factors to consider before moving forward with accepting or submitting an all-cash real estate purchase. Things such as interest rates, your location and the market, and your personal circumstances will all impact your decision. Now that you know the answer to what is a cash offer on a house compared to a traditional offer, you can decide for yourself. But the bottom line is this: There are many more advantages to a cash offer than there are disadvantages for both the buyer and the seller, so if you can, take advantage of that cash offer.

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