process · 6 min read
Six mistakes sellers make when going the cash route
The common mistakes that cost sellers money or time on a cash sale — and how to avoid them.
1. Taking the first offer without comparing
Any cash offer is negotiable. Getting two or three competing offers — even just to compare — typically lifts the final accepted offer by 5-15%.
2. Not asking for proof of funds
Any real cash buyer can provide a recent bank or brokerage statement showing the funds. If they refuse or stall, walk. Don't spend weeks under contract with a buyer who can't actually fund.
3. Accepting tiny earnest money
Earnest money is the buyer's skin in the game. $100 is a red flag. $1,000-$5,000 is normal. Anything below $500 means the buyer has nothing at stake if they back out.
4. Closing without a real attorney or title company
Real cash sales close through a third-party closing professional. If a buyer wants to handle paperwork themselves and hand you a cashier's check at your kitchen table, that's a major red flag.
5. Falling for "wholesale assignment" without disclosure
Wholesalers contract to buy from you then assign to a third party at a markup. Legal, but you should know the buyer is a wholesaler. Ask directly: "Are you the end buyer, or will you assign?"
6. Disclosing too little
As-is doesn't mean hide known defects. Misrepresentation can void the sale or expose you to liability post-close. Tell the truth, list known issues, sign the disclosure honestly.
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Lockwood Home Buyers makes cash offers directly to homeowners — no fees, no commissions, and no obligation to accept. We are not a real-estate agent or broker; we buy houses for cash.