What a cash offer on a house actually means.

"Cash" means no lender, not a briefcase

A cash offer means the buyer is not borrowing to buy your house. That matters because in a normal sale the buyer's lender controls the timeline and holds a veto: the appraisal has to come in, the underwriter has to be satisfied, and the loan can be pulled days before closing. Remove the lender and the sale stops being conditional on anyone's approval but yours.

Funds still arrive the ordinary way, wired through a title company or closing attorney into your account.

How the number is built

Any honest cash buyer is doing the same arithmetic:

1. After-repair value. What the house would sell for on the open market once it is in good condition, based on recent nearby sales.
2. Minus what it needs. Roof, systems, kitchen, bathrooms, anything structural, plus the cost of clearing it out.
3. Minus holding and resale costs. Taxes, insurance, utilities and financing while the work happens, then commission and closing costs when it is resold.
4. Minus a margin. The buyer is taking the risk that the repairs run over and the market moves. That margin is real and no serious buyer will pretend it is not there.

What is left is your offer. If a company will not walk you through those four lines for your house, ask why not.

Cash offer versus listing with an agent

The right answer depends entirely on the house. A tidy three-bedroom in a hot market should probably be listed. A house with a failed roof, a tenant who is not paying and an owner who lives 900 miles away should probably not be.

How to check an offer is fair

• Ask for the comparable sales they priced against, with addresses and dates.
• Ask what repair figure they assumed, and get one contractor to sanity check it.
• Get a second cash offer. Any buyer who objects to that is telling you something.
• Ask whether they are buying the house themselves or assigning the contract to somebody else. Both are legal; you are entitled to know which.