Cash Offers Explained
Everything about cash offers on real estate. How they work, who makes them, pros and cons, and how to get one.
A cash offer means the buyer has the full purchase price available in cash - no mortgage, no loan, no financing needed. No bank approval, appraisal, or lender requirements. This eliminates the single biggest source of delay and deal failure. Cash purchases represent approximately 32% of all sales nationally and 38% in Florida (ATTOM Data Solutions).
The process: (1) Seller contacts cash buyer with property details. (2) Buyer analyzes comparable sales, market conditions, and condition. (3) Written offer within 24-48 hours. (4) If accepted, title company opens escrow. (5) Title search 3-5 business days. (6) Close at title company - sign deed, receive funds via wire. Total: 7-14 days.
Real estate investors, home buying companies (like OneCashOffer), iBuyers (Opendoor/Offerpad - but with 5-8% service fees), individual wealthy buyers, and foreign investors purchasing US real estate.
Speed (7-14 days), certainty (95%+ close rate vs 85% financed), no appraisal risk, fewer contingencies, as-is purchase, lower or zero costs to seller, and flexible closing dates including rent-back arrangements.
The primary trade-off is price. Cash offers are typically 70-85% of after-repair market value. However, after deducting traditional sale costs (5-6% commissions, 1-3% closing costs, repairs, carrying costs), the net proceeds difference is often only 5-10%.
Contact a reputable cash buyer, provide property details (address, condition, type, timeline), and receive a written offer within 24 hours. Free, zero obligation. Use it to compare against listing or FSBO.
Ask for proof of funds dated recently and in the buyer's name, have the earnest money deposited with a Florida title company or attorney escrow, and choose a title company you can call independently. Read the inspection or due diligence period and the conditions under which the buyer can cancel, since those decide how firm the offer really is.
Even without a lender, the deed is taxed at 70 cents per $100 of consideration under section 201.02, Florida Statutes, title insurance and settlement fees typically apply, and property taxes are prorated to the closing date. A written offer should say who pays each of these, so you can compare the net figure on the settlement statement with any other offer.
General information about Florida law, not legal or tax advice. Confirm your situation with a Florida attorney or tax professional.
Typically 70-85% of ARV. But after traditional costs (commissions, repairs, closing costs, carrying costs), net proceeds are within 5-10%.
Yes. The initial offer is a starting point. Share any info the buyer may have missed.
Ask for proof of funds, use a reputable title company, never sign a deed outside proper closing, and check buyer reviews.