Working With an Actual Cash Buyer and How to Know the Difference

Working With an Actual Cash Buyer and How to Know the Difference

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When the time comes to sell your house for cash, you’ll want to know whether you’re working with an actual cash buyer or a traditional buyer. The difference between a cash buyer and a traditional buyer can be hard to spot at times, especially since, from your perspective, you may walk away with roughly the same amount of money.

Let’s break down the differences between cash buyers and traditional buyers in detail.

Traditional/Financed Buyer

A traditional or financed buyer is anyone who buys your home only after getting financing from a lender, like a bank or credit union. Rather than the traditional buyer paying you in cash for the home’s full price, their lender or bank will provide you with the funds instead.

Cash Buyer

A cash buyer is the opposite; they purchase a house themselves with cash (not usually physical bills, but still paid upfront and in total to your bank account). There’s no intermediating agent or third party to speak of. The deal goes down just between you and the buyer of your property.

The Difference Between Cash and Financing Buyers

The core difference between cash and financing buyers is obvious: cash buyers purchase a property themselves under their own names, while financing buyers can only purchase your property with the backing of a loan from a bank or other lending organization.

However, there are a few other differences between cash and financing buyers you should keep in mind:

  • Cash buyers can usually close a real estate deal with fewer closing costs
  • Cash buyers usually close deals more quickly
  • Financing buyers often have more requirements before they can purchase your property, oftentimes at the behest of their lenders (for example, they may require a full appraisal or inspection of the property where a cash buyer would not)

How to Tell if an Offer Comes from a Cash Buyer?


If someone approaches you with an offer to buy your house, ask them whether they will be paying in cash or if they will be financing the purchase through a traditional or another loan. The person will likely be honest.

However, you can also tell if an offer comes from an actual cash buyer by the closing costs and other requirements they demand. Cash buyers typically purchase homes as-is, so they don’t require renovations or repairs. They may get an appraisal to make sure their offer is fair, but they may not always request a full inspection of the home or surrounding property.

A traditional buyer is the opposite. They may require full appraisals or inspections, have extra closing costs, and have other needs to be met before they can go through with the sale.

Benefits of Working with a Cash Buyer

Working with a cash buyer may help you benefit from several advantages, including:

  • Faster deal speed. Cash buyer deals go down quicker, meaning you can walk away with your profits in a matter of days or weeks rather than months
  • More profits. Since cash real estate deals don’t have as many closing costs, that means more profits for you
  • Easier time selling the house. As noted, many cash buyers will purchase your property roughly as is. You won’t need to do a lot of extra work to make the house presentable to sell it, leaving you free to do other things or focus on other matters

Ultimately, working with an actual cash buyer is always a great idea if you need to sell your house fast. KC Property Guys have bought and sold properties throughout the Kansas City area for years and we’re very interested in your home if you’re ready to sell. We’re actual cash buyers, so contact us today!


Eric Scheele

Owner & CEO