5 Questions to Ask Any Cash Buyer

Not every cash buyer is the same. Some are legitimate investors with funds ready to close. Others are wholesalers who will assign your contract to a third party for a fee, with no obligation to perform the work themselves. Ask for proof of funds and verify the buyer's track record. A legitimate buyer should be able to provide a bank statement or letter from their lender showing available cash.

The offer price is not what you take home. Cash buyers often deduct service fees, repair credits, and closing costs from the purchase price. Some companies charge 5-7% service fees on top of an already below-market offer. Ask for a detailed net sheet that shows every fee and deduction so you can compare the bottom line against a traditional listing.

Speed is the main reason sellers consider cash offers. Ask exactly how many days to close, what needs to happen between now and closing, and whether the timeline is guaranteed in writing. A true cash buyer can close in 7 to 14 days. Be wary of buyers who promise speed but include inspection or financing contingencies that could delay the closing.

Some cash offers come with conditions. Inspection contingencies allow the buyer to renegotiate after finding issues. Appraisal contingencies mean the offer could drop if the home does not appraise for the purchase price. Even a cash offer can fall through if the buyer decides to walk after their due diligence. Ask exactly what contingencies exist and whether the price is fixed regardless of what an inspection finds.

Most cash home sales are as-is, meaning the buyer accepts the property in its current condition. But what happens if a hidden problem surfaces after closing? Some buyers offer limited warranties or post-closing remedies. Others provide none. Understanding the as-is terms in advance prevents surprises. Ask explicitly whether the buyer will address any post-closing issues and get the answer in writing.