Comparing a cash offer to a financed offer means comparing a lower, firm number to a higher, conditional one: the financed offer carries appraisal and underwriting risk on a 30-to-45-day clock, while the cash number closes as written in about two weeks.
By Ty Stevenson, Founder of InTym Properties
Two offers land on the same house: a financed offer at $390,000 and a cash offer at $340,000. The natural read is that the decision is $50,000. The correct read is that it is not: one of those numbers is a firm figure that closes in two weeks, and the other is a conditional promise that has to survive an appraisal, an underwriter, and 30 to 45 days of escrow. Comparing a cash offer to a financed offer means comparing price to probability, and the honest math is closer than the headlines suggest.
This post is the seller's side of the comparison. For the other version, what listing with an agent nets against a cash offer in Fort Lauderdale specifically, the cash offer versus agent listing post runs those numbers.
A financed offer is the buyer plus a lender, and the lender writes the real terms. Between contract and closing, three things stand between the seller and the money:
The financing contingency. The contract is conditioned on the loan being approved. If underwriting declines the file, for the borrower's credit, income, or increasingly for the property's condition, the buyer walks with the deposit and the seller restarts.
The appraisal. The lender lends against appraised value, not contract price. Below the contract, the deal reprices, the buyer covers the gap in cash, or it dies under the appraisal contingency. In a market where comps are thin or prices are sliding, the appraisal is the moving part that breaks strong-looking offers.
The clock. Under the federal TRID rule, 12 C.F.R. § 1026.19, the lender must deliver the Closing Disclosure at least three business days before consummation, and any one of three specific changes restarts that clock. Between appraisal ordering, underwriting conditions, and the disclosure windows, 30 to 45 days contract-to-close is the norm, and every one of those days is a day the seller is paying taxes, insurance, utilities, and usually a mortgage.
There is no lender, which deletes the appraisal contingency, the financing contingency, and the underwriting calendar in one move. The offer closes as written or it does not close, and a real cash buyer shows proof of funds up front to prove the money exists. The closing mechanics post walks the stripped-down version of the paperwork.
Two very different buyers call themselves cash offers, and the distinction matters. A retail cash buyer, someone purchasing a home to occupy, can offer near market value and simply skip the loan. An investor cash buyer prices the house as inventory: the offer math post shows the standard 70 to 80 percent of after-repair value minus repairs formula, and the how we calculate offers post shows it line by line. When sellers say "cash offer," they usually mean the second kind, and the gross discount is real, which is exactly what the net-sheet math below is for.
The comparison that works is not price against price. It is:
Take the $390,000 financed offer on a Broward house. Commission at roughly 5 to 6 percent costs about $20,000, concessions and seller costs a few thousand more, and six weeks of carrying costs at $2,000 to $3,000 a month adds another few thousand. The closed-net is suddenly mid-$350,000s if everything goes right, and $0 plus a relist if the appraisal misses. Against that, a $340,000 firm cash offer closing in two weeks is not a $50,000 spread; it is a modest discount for certainty, and on some houses it is the higher expected value outright.
| Cash offer | Financed offer | |
|---|---|---|
| Price | Lower gross; investor offers run 70-80% of ARV minus repairs | Usually the higher headline |
| Contingencies | None typical; proof of funds in writing | Financing, appraisal, sometimes home sale |
| Close | 7-14 days, or seller's date | 30-45 days; TRID disclosure clock applies |
| Appraisal | None required | Deal reprices or dies below contract |
| Fall-through | Rare once signed | Appraisal miss or underwriting denial |
| Seller costs | Buyer typically pays closing costs | Commission, concessions, carrying costs |
InTym Properties is the investor-cash column: our number prices the house as it sits, the written offer shows the formula, and the company signs and closes as principal on Broward County houses, with proof of funds on request. On a clean house where a strong financed buyer is on the table, we will say the financed offer is the better net, because it usually is. Where we are the answer is the other inventory: the house the appraiser will flag, the deadline the underwriter cannot meet, the sale that has to be done in two weeks. The we buy houses page covers what we buy and how the process runs, and the verify us page lists the checks to run on any cash buyer, including us.
Weighing a financed offer against a real number on a Broward County or Treasure Valley house? Email hello@intymproperties.com or schedule a call with Sean. The InTym Properties written offer costs nothing, does not move after inspection, and gives the financed number something to be measured against.
Usually on certainty, not always on net. A cash offer has no appraisal contingency, no underwriting, and closes in 7 to 14 days as written. A financed offer often carries a higher headline price but can die at the appraisal or in underwriting three to six weeks in. On a clean house with a strong buyer, the financed offer typically nets more; on a rough house or a deadline, cash does.
It depends which kind of cash buyer. A cash buyer purchasing a home to live in can offer near retail. An investor cash buyer prices off after-repair value, typically 70 to 80 percent of ARV minus estimated repairs, so on a house needing real work the gap between the investor number and the financed gross can be large, and it narrows fast once you subtract commission, concessions, carrying costs, and the financed deal's failure risk.
Three reasons: no lender can kill the deal in week five, no appraisal can reset the price below contract, and the closing lands in about two weeks instead of 30 to 45 days. The written number is the number. A financed offer is a promise contingent on a third party's appraisal and a lender's approval; a cash offer is just the buyer and the money.
Yes, and it happens in two predictable places. The appraisal comes in under contract price and the buyer cannot cover the gap, or underwriting declines the loan late in the process for credit, income, or property-condition reasons. Either way the seller relists weeks later with a staler listing and a record of a failed contract.
A financed purchase typically runs 30 to 45 days from contract to closing because the loan has to clear appraisal and underwriting, and the federal TRID rule requires the Closing Disclosure to reach the buyer at least three business days before consummation. A cash sale has none of that and routinely closes in 7 to 14 days, or on the seller's chosen date.
The lender only lends against the appraised value, not the contract price. If the appraisal lands below the offer, the buyer must cover the difference in cash, renegotiate the price, or walk under the appraisal contingency. For the seller it is the single most common way a strong-looking financed offer re-prices itself downward after the contract is already signed.
Run the net sheet, not the headline. Subtract commission, concessions, and the carrying costs of a 30-to-45-day escrow from the financed price, then weight it by the probability it closes. On a clean, appraisal-safe house the financed number still usually wins. On a house with condition issues, a soft comp set, or a hard deadline, the firm cash number is often the better expected value.
Written offer usually within 48 hours, signed by InTym Properties, every number shown. No repairs, no fees, no obligation.
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