There are so many options when it comes to selling your home in Texas. Should you sell with a real estate agent and wait for the perfect buyer? Should you sell by owner? Or should you sell to one of the local Texas home-buying companies that could make you a cash offer? Decisions decisions. We get that the answer isn’t always straightforward, and that’s why we’ve put together this helpful article to help you understand what cash offers mean for Texas homeowners.
Here at Four 19 Properties, we have been able to help dozens of Texas families with this decision. It’s definitely worth considering if you’re facing foreclosure, in the middle of a divorce, dealing with an inherited property, or just need to sell quickly. That’s why you should understand the pros and cons of a cash offer so you can make the best choice for you.
The Core Difference: “Retail” Buyers vs. Cash Investors
Before we explain the good and the bad, it’s helpful to know what the differences are between traditional sales and cash deals. A traditional home sale consists of listing with a realtor. The agent will market to “retail” buyers who need mortgage approval, want the home to be in good condition, and are willing to pay market value for a move-in-ready property.
On the other hand, cash buyers are usually real estate investors or home-buying companies who purchase properties in as-is condition. They close quickly and don’t require loan approval since they pay in cash. These buyers often work with families in unique selling situations like distressed properties, homes with code violations, or liens. Cash buyers focus on speed and convenience instead of getting the highest price possible.
The Pros: Why Texas Sellers Prefer Cash
Pro #1: Waiving the “Option Period” (No Unrestricted Right to Terminate)
Traditional buyers in Texas commonly include an “option period” in their contract – usually that’s 7-10 days, where they can back out of the agreement for any reason and get their earnest money back. All this does is create uncertainty for sellers because even after they accept an offer, there is no guarantee the deal will happen.
A cash buyer’s offer doesn’t have these risks. When we make an offer at Four 19 Properties, we don’t get cold feet. This gives you peace of mind knowing that once we agree on terms, we will do everything in our power to close.
Pro #2: Skipping the Appraisal & Repairs (Selling “As-Is”)
Traditional buyers usually request a home inspection and appraisal before closing. Not only do the buyers ask for these, but the bank financing the mortgage typically requires them to approve the loan. Of course, this can lead to repair requests or even deal cancellation if an issue pops up. The appraisal process alone can postpone the closing for weeks. And if the property doesn’t appraise for the contract price, you may need to lower your asking price; otherwise, the buyer might walk away.
A cash sale is different; you’ll be able to skip both the appraisal and repairs. We buy houses in North Richland Hills, Dallas, Mesquite, and throughout Texas in their current condition- good or bad. If your property is old, outdated, doesn’t have the best paint color to sell, needs major renovations, or structural work, cash buyers will take care of all of that after closing.
Pro #3: Closing Speed (7 Days vs. 50 Days in Texas)
Speed is the biggest advantage of cash offers. Traditional home sales, on the other hand, can take anywhere from 45 to 60 days in Texas. That’s from contract to closing and assuming everything goes smoothly. This timeline also includes things like mortgage approval, the underwriting process, inspections, appraisal, and final mortgage loan approval.
The timeline looks very different with a cash transaction. They can usually close in as little as 7-14 days because no lender approval is needed. The only things that are required are completing a title search, preparing the deed transfer, and handling the paperwork to sell a house for cash. If you need to sell your house fast in Mesquite or anywhere in Texas due to job relocation, financial hardship, or other urgent circumstances, this speed can be a game-changer.
The Cons: The “Price” of Convenience
Con #1: The Discount (Usually Below Full Retail Value)
One downside to cash offers is that they usually come in less than the full market value for your home. There are a couple of reasons for that. Cash buyers and investors need to budget for renovation costs, holding expenses, and profit margins, so they offer below market value. A reputable home-buying company will explain its formula and how it arrived at the offered amount.
Here is an example to explain this better: If your house sells for $200,000 on the retail market after repairs, a cash buyer might offer you $140,000-$170,000. This all depends on the property’s condition and the work that’s needed. Most sellers are fine with this discount because they can avoid making repairs, paying a realtor commission, and they get convenience, speed, and certainty.
Con #2: Limited Competition (One Buyer vs. The Market)
This may be a con, but when you list with a real estate agent, your property gets more exposure. That can create bidding wars and drive up the final sale price. Typically, this is more likely to happen if your house is in a good area of town, updated, and is move-in ready. When multiple buyers are competing for the same house, it can push the price above asking, especially in a hot market.
Negotiating with a cash buyer isn’t a common thing. You can try to get multiple cash offers from different investors, but usually that doesn’t drive the price up like it would in a traditional sale.
The “Net Sheet” Math: Does the Lower Price Actually Matter?
You may be surprised to hear that a lower cash offer might actually put more money in your pocket than a higher traditional sale. Below, we’ll break down the real estate commissions, closing costs, and other expenses, so you can see for yourself if this would work for you.
Traditional Sale on a $200,000 House:
- Sale Price: $200,000
- Realtor commissions (6%): -$12,000
- Closing costs and fees: -$3,000
- Repairs and staging: -$8,000
- Carrying costs (mortgage, utilities, taxes for 2 months): -$2,500
- Net Proceeds: $174,500
Cash Sale on the Same House:
- Cash Offer: $170,000
- No commission: $0
- Minimal closing costs: -$1,500
- No repairs needed: $0
- No carrying costs: $0
- Net Proceeds: $168,500
In this example, the cash sale puts only $6,000 less in your pocket, despite being $30,000 lower on paper. If you were to put a dollar amount on the time saved, stress avoided, and certainty of closing, it would be totally worth the $6k or more. This is why many homeowners find the cash route more appealing.
Warning: How to Spot “Fake” Cash Buyers
Unfortunately, there are cash buyers who make offers that are too good to be true, or they aren’t a legitimate company. Some make promises they can’t keep, or they use high-pressure tactics. Here are some other red flags you’ll want to look out for:
- Requesting upfront fees before closing
- Refusing to provide proof of funds
- Don’t have an official website or client testimonials
- Not a BBB-accredited business
- Pressuring you to sign immediately without time to review
- Vague about their company background or experience
- Making unrealistic promises about the timeline or price
Something easy that you can do to verify that the cash buyer is the real deal is to ask for proof-of-cash documentation and check to see if they have a legitimate business presence in Texas. Sadly, scams in the real estate industry are more and more common, so make sure to do your due diligence to protect yourself.
Why Four 19 Properties is the Safe Choice in Texas
Transparency is our middle name here at Four 19 Properties and means everything to us. We were founded by Neil and Shayla with the mission to provide Texas homeowners with honest, reliable cash offers. No high-pressure tactics here. If you’re looking for more information about how to get a cash offer from us, we’d be happy to run through all the details with you.
We want to be an open book about our home-selling process and how we calculate our offers. We also give you the time and space so you can make the best decision for your situation. We’ve all been there before and totally understand that selling a house is a major life event. So we’ve committed to making it as stress-free as possible. You can learn more about our company and our values on our website, where we share more about our company’s ethos.
And just to be clear, we are not like some of the other house buyers in Dallas or other parts of Texas; we never use high-pressure sales tactics or push you to make quick decisions. We believe in building long-term relationships with our community, which means treating every homeowner with respect and honesty.
Conclusion
Yes, all-cash offers do have some clear advantages and disadvantages. Selling your house for cash means faster closing timelines, no repairs or staging, removing financing contingencies, and certainty of a sale. The primary drawbacks are that the offer may be lower and there is limited competition to drive that price up, but as we’ve explained, that may not be a bad thing.
Whatever you decide to do, just consider your priorities: do you need a fast sale process and convenience? Or are you willing to wait longer for the possibility of higher proceeds? For homeowners who face urgent situations like a job transfer, financial hardship, or inherited properties that they can’t keep up with, cash sales are often the best solution.
While you consider your options, we always encourage you to do your own research, ask questions, and get more information. It also may not hurt to get multiple offers- both from traditional real estate agents and reputable Texas homebuying companies. This will help you get a complete picture of what your property is worth in different scenarios, which will allow you to make the choice that best fits your needs and timeline.