Buying Your House With Cold, Hard Cash? Here’s Your Step-by-Step Guide

You’ve piled up a large sum of cash, and you’re finally ready to use it to purchase a home. Or perhaps you’ve built up significant equity in your current home, and are looking to sell it so you can downsize to a property you could buy in cash. Maybe you’ve even heard about cash offer programs offered by real estate tech companies.

You’re left to wonder: Does it even make sense to buy a house with cash in 2024, and what does the process look like? If only someone would create a step-by-step breakdown for you…

We talked to a couple of experts about the process of buying a house with cash to find out what buyers need to know when forgoing a mortgage.

Why home sellers (still) love cash

Buying in cash has plenty of benefits — for one thing, you’ll be mortgage-free (sounds pretty nice!). You’ll also avoid the additional expense of mortgage insurance and save thousands on mortgage loan interest since you won’t be paying any.

But the biggest reason buyers are turning to cash? Gaining an edge over other bids.

“We love working with a cash buyer,” says Sherry Ludecker, a top-rated real estate agent in Johnson City, Tennessee. “A buyer purchasing a home with a mortgage loan could still lose their financing, even with a solid preapproval letter. So, a cash buyer gives sellers peace of mind. It’s one less way a deal could die.”