Can I sell my house for cash?

What it means to sell your house for cash

When you sell your house for cash, the buyer doesn't need a loan to close. That's the main difference from a typical sale. A financed buyer depends on a lender's appraisal and underwriting, and either can delay or end the deal. A cash buyer shows proof of funds instead, and the closing depends mainly on the title work.

"Cash" doesn't mean a suitcase of money. The funds are wired or paid by cashier's check through a title company, escrow company or closing attorney. You don't hand over the keys until the closing professional confirms the funds and records the deed.

Can I sell my house for cash if I still have a mortgage?

Yes. Most people who sell a house for cash still owe something on it. At closing, the title company requests a payoff statement from your lender, pays the loan off from the sale proceeds and sends you what's left. The same goes for most liens and unpaid property taxes, which are typically paid from the proceeds.

If you owe more than the house is worth, a cash sale gets more complicated. The lender may need to approve a short sale. In that case, talk with your lender and consider a free HUD-approved housing counselor before you sign anything.

How to sell my house for cash, step by step

When you sell your house for cash, the process is usually shorter than a listing because several steps disappear. Here's how a typical direct cash sale works.

• Share the address and basic facts about the house, its condition and your timeline
• The buyer reviews the property, often with a walkthrough or photos
• If it's a fit, you receive a written cash offer with the price and terms
• You review it, ask questions and compare it with other options
• If you accept, a title company or attorney opens the file and searches the title
• You close on an agreed date, sign the deed and receive your proceeds

Selling your house for cash vs. selling to a financed buyer

Most homes on the open market are bought with a mortgage. A financed buyer usually makes an offer that depends on an inspection, an appraisal that supports the price and final loan approval. If the appraisal comes in low, the buyer may ask for a price cut. If the loan is denied, the sale can fall apart close to the closing date, after you've already planned your move.

When you sell your house for cash, those steps either disappear or get much shorter. There's no lender appraisal and no underwriting. Many cash buyers also buy as-is, so there's no repair list after the inspection. That's why cash offers are attractive even when they're lower: the number on paper is more likely to be the number at closing.

Documents you'll need to sell my house for cash

The fastest cash sales are the ones where the paperwork is ready. Before you accept an offer, pull together what the title company will ask for. Missing documents, not the buyer, are the most common reason a cash closing slips.

• Your deed, or at least the exact names of everyone on title
• Your latest mortgage statement and the lender's payoff contact
• Your property tax bill and any HOA contact information
• Any liens, judgments or code violation notices you know about
• Probate letters, a trust document or a death certificate if the house was inherited
• A photo ID for each person who will sign at closing

Who buys houses for cash?

Cash buyers include individual investors, local companies that buy and renovate or rent houses, larger home buying companies and, sometimes, regular buyers who simply have the money. Some buy as-is in any condition; others only buy houses that need little work. Some are the actual buyer; others are wholesalers who put the house under contract and then assign the contract to another investor.

Each type of buyer has a different business model. A company that renovates and resells needs room in the price for repairs, holding costs and resale costs. A buyer who plans to rent the house looks at the rent it can earn. A wholesaler earns a fee for finding the deal and passing it on. None of these is wrong, but knowing which one you're dealing with helps you understand the offer and how reliable the closing date is.

Ask directly who will be buying the house and whether the contract can be assigned. A buyer who intends to close in their own name can usually show you proof of funds and name the title company.

How long it takes and what it costs to sell your house for cash

Without a lender, the timeline is driven by the title search, payoffs and any title problems that need to be fixed, such as old liens, an estate that hasn't been through probate or a missing signature. With a clear title, a cash closing can often happen within days to a few weeks. You can also choose a later date if you need time to move.

What it costs to sell a house for cash depends on the buyer and the contract. Some cash buyers charge fees or ask the seller to pay closing costs; others pay them. Every legitimate buyer will put this in writing. You'll still pay off your mortgage and any liens from the proceeds, and depending on your situation there may be taxes on any gain; IRS Publication 523 explains the rules for selling a main home.

The bigger trade-off is price. A cash buyer prices in repairs, holding costs, risk and resale costs, so a cash offer is often lower than what a fully prepared house might sell for on the open market. Compare the offer with your likely net from listing after commissions, repairs, concessions and carrying costs, not with the listing price.

When selling your house for cash makes sense, and when it doesn't

Selling for cash tends to fit when certainty and simplicity matter more than squeezing out the highest price, or when a financed buyer would struggle to get a loan on the house.

Lenders generally want a house to be safe and livable before they'll finance it. A house with a failing roof, foundation movement, missing systems or serious damage can be hard to sell to a buyer with a standard mortgage. For those houses, the realistic buyers are often cash buyers anyway, and the question becomes which cash buyer gives you the best written terms rather than whether to sell for cash at all.

• Good fit: the house needs major repairs, you inherited it, it has tenants, you're relocating, or you're facing a deadline
• Good fit: you don't want showings, open houses or a long closing
• Maybe not: the house is updated, in top condition and in a strong market, and you have time to list it
• Maybe not: you need every possible dollar and can wait for the right buyer

How to sell my house for cash safely

Most cash buyers are legitimate, but the steps that protect you are the same no matter who you're dealing with. A good buyer will welcome the questions and won't rush you. If you're comparing several offers, line them up on the same terms: price, fees, closing costs, closing date and conditions.

Get the offer in writing, including the price, every fee, who pays closing costs, the closing date and any conditions that let the buyer cancel. Confirm the buyer's identity, proof of funds and the title company. Don't pay anything up front, and don't sign under pressure. Verify wire instructions by calling a known number, not one in an email.

Sell your house for cash to Prominent

Prominent Cash Offer buys houses directly, as-is, in any condition. Share the address; if the property is a fit, you receive a written cash offer with the amount and terms spelled out. There are no fees or commissions, we pay the closing costs, and you choose the closing date. There's no obligation to accept, so you can compare our offer with listing or with other buyers before you decide.