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  • Joey Hoisescu

Cash is King, Right?

Ok...ok. The title was a bit click bait-y, but I promise this will be a short and interesting read. Perhaps you’ll even leave with a different perspective than you had before on cash offers and how they pertain to selling your home.


In the current market, cash offers represent approximately 22% of transactions and, no, they’re not all people from California.


If you’re selling your house and you’re new to this game you’re probably hoping for a cash offer. But do you really need one? Should you even accept one?


To arrive at a useful conclusion involves first understanding the headline of this article. Historically cash has been viewed in brighter light than financing because of a few reasons:


  1. Cash buyers can close faster

  2. Cash deals don’t involve appraisal

  3. Cash will result in more money for you (somehow)


Before the markets around the country shifted to heavy sellers’ markets (yes, it’s happening everywhere) these were reasons sellers could really hang on to. But I’m telling you that the landscape has changed and I don’t believe cash is king anymore. Keep reading to learn why.


First we have to start debunking the points above. Let’s start here:


  1. Cash buyers can’t always close faster. I have lenders that can close in 2-3 weeks, which is equivalent to the typical closing timeline for cash deals in Colorado.

  2. Buyers are covering the entire appraisal gap or lenders are waiving it completely. There are certain loan programs or down payment amounts in which the government will allow lenders to forego an appraisal. And most sales these days involve multiple offers where buyers are forced to cover appraisal gaps in order to compete.

  3. No clue where this one came from, but it's wrong.

  4. Cash buyers can be cocky and think they can win any house. The termination rates for transactions tend to be highest in cash deals. So be weary, because if a cash buyer finds a house they like better, they may bail on yours and go after it.


When the offers start rolling in on your home, try not to get too caught up on the financing vs. cash aspect. Cash is great, if the buyers come with aggressive terms and conditions and the highest price. But I don’t advise taking a lower cash offer just because they have the cash to spend.


Overall your decision on which offer to take should be based on a conversation with your agent; I’m a great option. I have the experience of asking the buyer’s agent the right questions, the mind to break down the cost/benefit of each offer and the nose to sniff out bullshit. Also look at each offer comprehensively; the best overall offer usually shows the highest willingness of a buyer to close the deal. NEVER pick an offer because of one aspect or another.


If you’re wondering what your house is worth or want to chat about selling, hit me up via text, email or phone call. I’d love to grab coffee and chat about working together.


- Joey



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