Home Improvement

What You Should Know About Cash Offers in Real Estate


In the current hyper-competitive real estate market, buyers and sellers have pulled out all possibilities to close bids on listed homes. Among the many alternatives, cash offers have emerged as a winning tactic used by buyers to close sales. According to the National Association of Realtors, cash offers accounted for 25% of home offers made in February 2022. Similarly, cash offers are four times more likely to win bidding wars.

The increased popularity of cash offers in the current real estate market is partly because it benefits the buyer and seller. Buyers and those who want to sell a house in Phoenix, AZ, enjoy a quick and less stressful process with cash transactions. Below are a few things you should know about cash offers.

What Are Cash Offers?

Unlike a mortgage, property buyers don’t finance their purchases using a cash offer. Instead, they pay for the house in full through wire transfers or checks. Cash buyers ideally have the full amount in their accounts. While you can easily perceive that most people don’t have liquid assets to pay for houses in cash, cash sales are increasingly becoming popular. Cash sales mean a short sales and closing process, and property sellers save a lot from reduced closing costs.

Why Are Cash Offers Great for Sellers?

Cash offers are benefits sellers in the following two main ways:

  • Quick transactions – Unlike selling to a mortgage buyer, cash transactions take a maximum of two weeks and not months. Cash sales that involve direct buyers, investors, or house flippers can significantly reduce the average listing period of 49 to 60 days.
  • Less risks – Appraisals aren’t necessary for cash buyers. Most mortgage lenders demand an appraisal to ensure they don’t finance an overvalued asset. Property sellers are also uncertain if the deal will fall through. In some situations, mortgage lenders can decline applications several weeks into the sales process, putting off the entire deal.
  • Saves on cost – Property sellers don’t have to renovate or repair their homes before selling. Renovating your house before selling is risky as not all renovations provide a valuable return on investments.

How Are Cash Offers Great for Buyers?

Cash offers aren’t solely beneficial to sellers. Property buyers also benefit in various ways, including:

  • Reduced purchase price – Paying for properties in cash saves buyers from the listing price. Sellers often accept low cash offers to enjoy a fast and hassle-free selling process. Cash offers are also low because homeowners don’t necessarily need to renovate or repair their properties.
  • No mortgage interest – Buyers also don’t have to deal with monthly mortgage payments. With mortgage rates continually rising in 2022 across most U.S states, paying for cash saves property buyers a lot in the long run.
  • Tax implications – While buyers may not qualify for various tax write-offs as mortgage property purchases, sellers are the taxed parties on cash purchases if they gain from the sale.


Mortgaged home transactions can be stressful to both the seller and buyer. However, buying and selling in cash reduces the stress and lengthy sales process. Consider this quick and easy option if you intend to list your home for sale in Phoenix, AZ.

Justin Tye
Justin Tye is a renowned journalist focusing on market trends and property insights and has been enriching readers since 2012. With over two decades of experience in journalism, he has a knack for demystifying complex real estate topics. He started his career at a major news outlet in New York, where he honed his reporting skills. In his personal life, he is passionate about sustainable living and enjoys renovating old properties using eco-friendly methods. He also loves to travel, exploring different cultures and architectural styles.

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  1. […] can dynamically help you witness a boost in your property sales. One can use many ideas to increase real estate asset sales. However, it is essential to realise the significance of each concept and execute them […]

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