What is a Cash Buyer?

If you have been looking online to find someone to buy your house more than likely you’ve seen the term, “Cash Buyer”. What exactly is a cash buyer and how is that different from how people normally buy houses?


We will start with the normal way people buy and sell houses. Typically when buying a house you use a bank or credit union to finance you the money and they have to approve how much money you can afford and the house you want to buy. It seems pretty self-explanatory that they will only give you the money they think you can afford.

No one wants to lend someone else money they don’t think will be paid back.

But also the bank has to approve the house you want to buy. Typically banks look for a house to be 80% finished. It has to have walls, running water, and overall be liveable. They want to be sure that if you stop paying for the house it will be in good enough condition that they would be able to sell it.

If you already know what a cash buyer is for a house and just want to find the best one in Cincinnati, just fill out the form here, or call or text 513-601-9876.

If you are selling your house then you have two major hurdles to jump through with the bank. First, is the person or party that wants to buy the house approved for the selling price amount. Second, is the house in good enough condition the bank will okay it. Once you deal with both of those hurdles it takes at least 30 days for the sale to close. At the closing table, the seller of the house gets a check from the bank for the selling price of the house.


Now, what is a cash buyer? A cash buyer is a buyer who has the money to buy your house without going through a bank. For houses that are in rough condition, this is normally the only kind of buyer you can have. What’s beneficial to a cash buyer is there is no question if they will qualify for the house.  They already have the money in the bank. Also, a cash buyer can buy a house in any condition because it’s their own money they are spending. A cash buyer can also typically close in about 2 weeks or less.  A regular buyer needs about 4 weeks to get traditional financing.


But you might be wondering, why does it take two weeks to close if the buyer already has the money?


The buyer will go through a title company.  That company makes sure whoever says they own the house actually legally owns the house and there are no liens on the house.  A lien is money owed towards the house that has to be paid before the house can be sold.  A lien could be an existing mortgage on the house where the buyer pays off the loan to the bank and the rest of the money from the selling price goes to the seller.  There could also be mechanical or tax liens on the house.  A mechanic’s lien is when someone who was hired to work on the house did not get paid.  This could be something like a new furnace got installed but the company did not get paid.  A tax lien is just unpaid taxes owed to the government that must be paid before the house can be sold.

Title Company is there for both the buyer and the seller

It can take a title company a few days to a week to make sure there are no liens on the property and then the closing of the sale normally happens at the title company’s office. During this time the official paperwork is signed and notarized.  This is when the official transfer of the house to the buyer and transfer of money to the seller happens. Typically the buyer pays the title company the purchase price and then the title company pays the seller. This way the seller can be guaranteed the check is valid.

In summary, a cash buyer has their own money to buy a house instead of going through the bank as a middleman to finance the buying of a house. Because cash buyers cut out the middleman the process often goes much smoother and takes a lot less time.


If you need a little more information about cash buyers in Cincinnati check this article out.

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