How Long Does it Take to Close on a House With a Cash Offer?
5 minute read
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August 14, 2022

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So you’re considering a cash offer for your home? 

Cash offers are great for hot markets because they close the sale sooner and you save money on closing costs. 

You might even be able to entice the seller to sell below the asking price because of how much easier the sale is without the banks involved. This isn’t always the case, but it’s something to seriously consider when considering all-cash offers. 

Let’s look at what an all-cash offer involves and the cash sale process. 

What is an all-cash offer?

An all-cash offer is exactly what it sounds like—an offer on a house that is made entirely in cash. 

The seller will verify your funds, and then you’ll be able to proceed with the purchase of a house. You can skip all of the extra steps in the home buying process that are related to securing a mortgage. 

Some things, like due diligence, are still important to go through in order to ensure the home you’re buying is sound. But other things, such as underwriting, you can skip because you’re not working with a loan officer. 

A cash sale: Start to finish

A June 2021 study found that the average home sale takes 49 days to close with a mortgage. 

Cash sales can put you ahead of the game in a competitive market. If you’re offering a price in cash, you might beat out someone who is offering at price but needs a mortgage. 

If you’re buying a home in cash, you can decrease the sale process to as little as two weeks

That decrease in closing time can incentivize sellers to decrease the price of the house in exchange for a quicker sell time. You get your house faster and they get their funds faster. It can work out to be a win-win for both parties. 

But exactly how much time can a cash sale save you? Let’s look at approximately how long each step takes. 

Cash buyer makes an offer and seller accepts it—1 day (typically)

If you’re not negotiating for a lower price, and if it’s not an extremely competitive market, you might have your offer accepted within a day. 

Once accepted, you’ll enter the contract period by signing a purchase agreement with the seller. This marks the beginning of the timeline to buy a house in cash. 

You’re going to have to prove to the seller that you have the funds needed to buy the house. They may request bank statements through your real estate agent. 

Seller verifies that cash buyer has the money to buy the house—24 to 48 hours

This is crucial so that the seller can see you’re earnest about buying the house. 

This takes the place of setting up your account with a mortgage lender and where most of your time is shortened. You won’t have to go through any underwriting or appraisal for the mortgage company. 

Secure title and escrow services—1 day

You’ll need to put your money into an escrow account, including any earnest money that you’re putting down. 

The title company will work to clear any liens on the property and get insurance and paperwork ready for the title transfer. Escrow services are how the funds will actually be transferred and how the closing documents are prepared. 

A lot of people combine title and escrow into one process, as many companies will offer both types of services. 

Your agent can help you navigate this step and flow as smoothly as possible. 

Inspections and appraisal—plan for at least a week

While an actual inspection only takes a few hours, it could take around a week for an appointment to actually be scheduled. The same goes for an appraisal, which can usually be done in a short amount of time but securing the appointment may take a few days. 

Final walkthrough—1 day

You’re getting close to closing on your house. 

One of the last steps in this process is doing a final walkthrough of the house. This is your chance to have one final look through the house before you close on the property. 

You’re checking to make sure that the house is in sound condition and that the seller performed any of the repairs requested as part of the purchase agreement. 

If something is unsavory, this is the time to say something. 

Closing—1.5 to 2 hours

Closing is probably the most exciting part of the home buying process. You come in, sign the paperwork, and get the keys to your property. 

Closing shouldn’t take more than two hours if both parties come ready to seal the deal. 

However, it can be spread out if either party isn’t prepared or has extra questions or concerns about the paperwork. 

You can get ahead of these by working with real estate agents and being prepared when you come to the closing table. 

Want to sell your home for all cash?

At Simple Home Offer, we do our deals completely in cash because we appreciate the speed on both ends of the equation. 

If you’re looking to sell your home, we’ll work with you to find the best terms and conditions for your sale

Our team of experts can help with all things home buying and selling. We’re happy to help with all of your real estate needs

Ready to buy a home with cash? You’ll be more competitive than traditional offers and you’ll get into your house more quickly than offers with a mortgage. 

Reach out to Simple Home Offer for more info. Our team will make the process as seamless as possible for you and get you in your house fast.

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