Cash Buyers vs. Traditional Buyers: Pros and Cons

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In the real estate market, there are two kinds of buyers you will encounter when selling your home: cash buyers and traditional buyers. With the popularity of cash home buyer in Kansas City increasing, you must know what buyer you’re selling to and why.

So, before you get to selling your home, here’s all you need to know to make the smart choice.

Who Are Cash Buyers?

Well, the term “Cash Buyers” can be a little misleading to first-time home sellers. Contrary to popular belief, cash buyers will not just pull up at your property with a truckload of cash to make a purchase. They still make payments using banks and other agreed financial channels.

Cash buyers are simply buyers who purchase a property without any long-term financing or mortgage payment plans. They are usually investors and home flippers who buy houses to renovate or rent out. These buyers are always on the watch for property deals, and they have the financial capacity to make a one-time payment to close the deal quickly.

While this may sound like an attractive offer, they have their downsides. There are certain situations where selling to cash buyers is the best option, and sometimes, selling to them might make zero sense. For more clarity, let’s delve into the pros and cons to help you make the best decision.

Pros of Selling Your House to a Cash Buyer

Selling to a cash buyer is the dream for many property owners, and here’s why.

1. Easier and Quicker Transactions

Cash buyers have all the money and knowledge to close the deal as soon as there’s an agreement. You don’t have to deal with all the paperwork and approval that comes with mortgage financing, which could span for as long as 60 days.

So, selling to cash buyers also saves you time. No need to wait for the bank to approve any transactions and all the financial challenges that impede payments.

2. Skipping Inspection and Appraisal

Usually, buyers are required to make an appraisal before the bank lends out anymore. But during an all-cash sale, you get to skip the inspection and appraisal process. 

Most cash buyers are more interested in buying the property as it is because they have plans to remodel and renovate. And since they don’t need the bank’s approval to get the funds required for purchase, they can refuse to appraise the property. So, you don’t have to worry about carrying out major repairs on such property.

3. Instant Cash for Difficult Situations

If you’re in a difficult financial situation and need to liquidate as soon as possible, selling to a cash buyer is the safest choice. You get paid all the money at once, which is good for when you are going through a job lay-off or a divorce.

4. Higher Chances of Closing the Deal

Purchase agreements are more likely to succeed when the buyer’s decision isn’t dependent on whether or not the mortgage will be approved.

5. Saves You Money

With cash buyers, there are no commissions or realtor fees to pay. They also pay all associated closing costs. As a seller, you get to save up to 8% of your net profit. 

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Cons of Selling Your House to Cash Buyers

Selling to cash buyers isn’t all roses and sunshine. Before you seal that deal, here are some of the drawbacks of an all-cash sale.

1. High Risk of Undervaluation

Cash buyers usually make offers that are below the market value. Most of them are investors who prey on your limited knowledge to get your property at a lower cost. 

To be on the safer side, you can involve a real estate agent to help you get your property’s worth and maximize your ROI.

2. Potential Scam

Cash buyers could be scammers looking for easy prey. Before you seal the deal with them, do your background check.

Traditional Buyers 

The traditional method of purchasing properties is one many are familiar with. It requires financing from local banks and other official financial institutions.

Traditional buyers are interested purchasers who are dependent on money lenders to make payments. They usually have the intention of occupying the property and doing any remodeling they deem fit on their account. 

Pros of Selling to Traditional Buyers

Selling your property to a traditional buyer comes with its advantages. Here are the pros of sealing the deal with a traditional buyer;

1. Reliability and Security

You are at a lower risk of being scammed when dealing with a traditional buyer. The payment is being regulated by an official money lender, so you are sure to get your payment when due.

2. Higher Offer Price

Traditional buyers have a more flexible payment option. They are more willing to make an offer that is higher or very close to the property’s market value.

Cons of Selling to Traditional Buyers

Here are some troubles you might encounter when selling to traditional buyers.

1. Takes Longer

Selling to a traditional buyer takes time. You have to wait for them to get approved for the loan, amongst other mandatory paperwork.

2. Inspection and Appraisal Is Mandatory

Sellers will have to bear the extra cost of appraisal, inspection, and associated repairs. The goal is to make it up to standard for sales, but it could get overwhelmingly costly.

3. High Risk of Delays and Deals Falling Through

Since traditional buyers are totally dependent on mortgage lenders, there are higher chances of experiencing delays or not closing the deal. Mortgage lenders will not approve the loan if the house is not up to their standard, and it usually takes a while for the loan to be approved, even when the property is up to standard.


Knowing the type of buyers to sell to is necessary if you want to get a good deal on your property. Both traditional buyers and cash buyers have their pros and cons. Be sure to vet the purchasers and choose the option that works best for you.

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