Try GOLD - Free
Should You Pay Up to Pay Cash?
Kiplinger's Personal Finance
|July 2022
Some firms help home buyers make all-cash offers on homes. Weigh the fees before you sign on.

If you're buying a home in a competitive market-like this one-making a cash offer gives you a major advantage. Home buyers who made an all-cash offer in 2021 were four times more likely to win a bidding war, according to a recent report by Redfin, the real estate brokerage.
Buyers have gotten the message. Amid intense competition due to superlow inventories of homes for sale, the number of all-cash offers has grown. In December 2021, nearly one-fourth of existing home sales involved an all-cash offer, according to data from the National Association of Realtors. In some states, including Florida, cash offers account for about half of the homes sold. All-cash sales have also become common in Arizona, Nevada and West Virginia, according to Realtor.com.
Real estate investors and high-net-worth individuals make up a large percentage of cash buyers. But first-time buyers, or trade-up buyers who have to pay off a mortgage on the house they're selling, often don't have nearly enough cash to buy a home outright.
A silent partner. Enter new services that have sprung up in the past few years to allow buyers to make cash offers when they bid on homes. All the deals executed with these companies back up buyers' offers with cash and guarantee a closing within a certain time frame typically in 30 days or less and sometimes as little as eight days. You are able to waive the financing and appraisal contingencies (but not necessarily the inspection contingency) in your offer.
Fees vary from service to service and are often dependent on whether you use an in-house mortgage lender or a third-party lender. If you don't complete your own financing before settlement, the company may purchase your home with the expectation that you repurchase it when your loan comes through.
This story is from the July 2022 edition of Kiplinger's Personal Finance.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 9,500+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM Kiplinger's Personal Finance
Kiplinger's Personal Finance
Your Protections With a P2P App
PEER-TO-PEER payment services such as Cash App, PayPal, Venmo and Zelle offer an easy way to transfer money to friends, family and businesses.
1 mins
October 2025

Kiplinger's Personal Finance
PROTECT YOUR SAVINGS IN TURBULENT TIMES
Don't let a shaky economy and volatile market derail your retirement. These moves will help ensure your money lasts as long as you do.
13 mins
October 2025
Kiplinger's Personal Finance
PLAYING DEFENSE PAYS OFF
SOME bond market watchers say that high-yield bonds-those rated between double-B days.
1 mins
October 2025

Kiplinger's Personal Finance
Buy Now, Pay Later—With No Regrets
Extended payment plans can help ease the sting of a big-ticket purchase. But beware of costly missteps that can add to your price.
5 mins
October 2025

Kiplinger's Personal Finance
WHAT TO KNOW ABOUT CHOOSING A TRUSTEE
Whoever you designate should act in the best interests of you and your beneficiaries.
2 mins
October 2025
Kiplinger's Personal Finance
HOW THE ONLINE BROKERS STACK UP
We scrutinized investment offerings, tools, mobile apps, advice and more to find the best broker for you.
16 mins
October 2025

Kiplinger's Personal Finance
You May Pay Extra to Share Your Streaming Subscription
IF you're among the majority of Americans who watch streaming services—83%, according to Pew Research Center—you may share your plan with family members who live both in and out of your home.
2 mins
October 2025

Kiplinger's Personal Finance
Over 50? Take These Steps When You Shop for Eyeglasses
Making a selection often gets trickier—and more expensive—as you age.
5 mins
October 2025

Kiplinger's Personal Finance
THESE CREDIT CARDS REWARD YOUR LOYALTY
If you have bank or investment accounts with your credit card issuer, you may qualify for extra cash back, waived fees and other benefits.
7 mins
October 2025

Kiplinger's Personal Finance
A Shopping Strategy That Reduces Waste
At this store, customers stock up on soap, laundry detergent and other household supplies with reusable containers.
2 mins
October 2025
Translate
Change font size