Black Man Gets Told The House Offer Is “Off The Table” Since It’s Cash Only, Proves Them Wrong

Cash nowadays doesn't necessarily refer to printed money anymore. It can also mean a direct deposit. Meaning all money for the house sent to the original owner's account, instead of monthly payments through a bank or something similar.

I think they mean they don't want to deal with the requirements of the buyers finance company/mortgage broker. It can slow things down with their required inspections/assessments, etc. They might not finance if the house had significant issues, isn't up to code. This house might have something about it that makes it unable to be mortgaged, or the seller wants a quicker, easier turn around, or he is just a crotchety old jerk, Or most likely, as it seems likehe called the seller directly, he is not using a broker, a cash sale would be easier for seller to navigate because a lot of what a broker does us to handle all that minutiae for you. He might have fielded a lot of phone calls from lookie-loos and it seems like his customer service skills are .....lacking.

Demi... "cash" means you do not need a loan from the bank to finance the house. It usually happens when a buyer sells their previous home for a high price, and finds another home in a different area that costs less. The bank transfers the money from the sale of the first house to the purchase of the second house (the person selling the previous home keeps anything left over) and they now own the house outright, no monthly payments. It's a pretty common thing for for people selling in high-cost areas (like California) and moving to low cost areas (Like Mississippi).

WilvanderHeijden I believe they have to get approved for a loan from the bank for the entire cost of the house and then they pay the bank back slowly in payments.

No mortgage. So no chance for it to fall through.

Cash only means the buyer has the funds available and doesn't need to borrow money from a bank. Bank loans require inspections and often stipulate that the building be brought up to modern building code. Cash sales can be completed faster and with less hassle to the seller. Sellers aren't likely to accept a bag of cash -- usually the buyer's bank makes out a check to seller. Also known as a "cashier's check" rather than a personal check.

"Cash only" generally means the full price of the house is paid in one fell swoop, via a bank-certified check. The buyer places the cash with his or her bank, and the bank issues the certified check. When the seller deposits the check in their bank account, the actual cash is transferred from the buyer's bank to the seller's account. (I used to work in a bank...dealt with stuff like this a lot) Also, most buyers in the USA only have to come up with 10% of the price as a deposit...the rest they get as a loan from the bank, called a mortgage, and pay off the mortgage with interest to the bank. That way the buyer and seller aren't tied to each other for years.

Having bought a house in the US - twice but not for 'cash' - let me explain. You purchase a house through a "Title" company. They handle the mortgage and /or money transfers. You are informed of the amount of a cashier's check (a verified check issued from your bank) required to "close" the transaction. This amount will include any down payment and fees - like the mortgage lender and title company and government recorder and sometimes realtor fees. No one who is at all savvy will purchase a house - with or without mortgage - through anyone except a title company. They verify "clear" title and ensure all the proper liens are paid and the house is really, truly the buyer's when all money is transferred either from the bank handling the mortgage or to the seller (if paying "cash"). (Lien - an amount owing for various reasons - sewer improvements in the neighborhood, for example. The lien is either paid off in increments or when the house is sold.)

Cash only means that the payment is to be made in full without any loans. It is usually done by certified means, like a certified check or transfer of funds. To answer another question - sellers can make a loan to the buyer so the buyer pays the seller instead of a bank on a month to month basis.