What Every Seller MUST Know About Cash Offers In The Market
About this video
Selling your home? You’ve likely heard of both cash offers and traditional sales—but which one actually makes the most sense for your situation? In this video, we break down the pros and cons of selling your house for a quick cash offer versus going the traditional route with a real estate agent. From speed and convenience to pricing and contingencies, we cover it all.
Key takeaways
- Jason and team agent Zach Bidleman break cash offers into three types. As-is (leave whatever you want behind) usually pays the least; empty and broom-clean pays a bit more; and a two-closing program usually pays the most.
- In a two-closing program, the investor pays part of the agreed amount up front (about 65% in Zach's example), renovates and resells, then pays the rest at resale, often with a share of any gain above the target price. If it sells for less, you get less, and the first payment may not cover your mortgage.
- Every lien on the title gets paid at closing: mortgages, mechanic's liens, utility or medical liens, child support and so on. Tell your agent about them early so you know your real net.
- The upside of a cash offer is speed (closing in as little as about 7 days), no repairs and few or no showings. The downside: investors are businesses, and offers can come in up to 25% to 30% below open-market value.
- Insist on a standard Minnesota purchase agreement and proof of funds, and have a lawyer review anything unusual. Watch for clauses like "subject to board approval" or a buyer's right to cancel at any time.
- Cash offers often fit inherited homes owned by out-of-state heirs, or homes needing major repairs. If you'd grade your home a 6 or better out of 10 and aren't in a hurry, the open market usually nets more.
Questions this video answers
Should I take a cash offer on my house?
It can make sense if the home needs major work, you inherited it from out of state, or speed and convenience matter most. If the home is in good shape and you have time, listing on the open market usually nets more. Compare both side by side.
How much less is a cash offer than market value?
It varies by investor, but the video says offers can come in up to 25% to 30% below what the home could sell for on the open market, because the investor pays for repairs and resale and needs a profit.
What is a two-closing cash offer?
The investor pays part of the price at a first closing, renovates and resells the home, then pays you the rest at resale. It usually pays the most of the cash options but depends on the resale price.
Read more: Get a cash offer or compare it with listing · Selling a parent's home
Notes written by Huerkamp Home Group from this video. Figures are as stated in the video on April 22, 2025; check the current numbers in our market reports.
