How to Buy a House with Cash

Buying a house with cash might not be the most common option. Only 30% of buyers reported in a 2024 Zillow survey that they paid cash for their home purchase. For those who are in a financial position to buy a house with cash, it can be a more streamlined path to homeownership. Without loan approvals or financing delays, your offer becomes more attractive to sellers and allows the process to move much more quickly. That said, there are a few trade-offs. You won’t benefit from mortgage deductions, and you’ll be tying up a large amount of capital. 

If you’re thinking of buying a home with cash, here’s a step-by-step guide to help you navigate the entire process. 

1. Gather your funds

Before you start house hunting, you’ll want to take time to review your finances. Ask yourself, “Can I buy a house with cash?” The answer likely depends on a lot more than the listing price. You’ll need enough money to cover the total cost of buying a house, which includes closing costs, property taxes, moving expenses, and possibly even some post-purchase repairs or upgrades.

Once you have reviewed your finances, make sure to keep them in a secure, accessible account so they’re ready when needed. It’s always a good idea to speak with a financial advisor to make sure buying a house in cash is a good long-term financial goal for you before you move forward. 

Pro tip: Here’s how to reduce closing costs and keep more money in your pocket.

2. Hire a real estate agent

Even though you’re skipping the lender, you won’t want to skip the buyer’s agent. A knowledgeable real estate professional can help you navigate listings, negotiate deals, and handle all the fine print so nothing is missed or left on the table. They’re your advocate, and a great agent can be the difference between a smooth process and an overwhelming one. 

Consider connecting with a Zillow partner agent. Our partner agents offer local expertise and can help you find homes that accept cash offers.

3. Find the perfect home

Now comes the fun part of the process: house hunting. You can explore homes for sale on Zillow. Your agent can also help you narrow down your search to find homes that match your wish list and price range. Since you’re buying a house with cash, you may have a competitive edge over other buyers, which can shorten your closing timeline. 

Still, don’t rush. A cash purchase is a big commitment, and it’s worth making sure the home truly fits your lifestyle and goals.

4. Acquire proof of funds

Sellers want more than just your word that you’re good for the money they want for their homes. To make a serious offer, you’ll need to provide proof of funds, which is a document from your bank or financial institution confirming you have the cash available. This step reassures sellers that your offer is legitimate and that you’re ready to close quickly. 

5. Make a cash offer

With your finances all in order and proof of funds in hand, it’s time to submit an offer. Cash buyers often have more negotiating power because they eliminate the risk of financing falling through. A 2024 Zillow survey revealed that the most common reason offers fall through is because of issues with money, mortgage, or financing (40%). Your agent can help craft an offer that emphasizes the benefits of a cash offer vs. a mortgage, such as faster closing and fewer contingencies. 

6. Negotiate with confidence

Even if you’re paying in full, a seller still might not accept your first offer. Negotiation is all a part of the process, but luckily, your position is stronger than most. A quicker, more certain close is often worth more than a higher but riskier offer.

Your agent will be able to help you use your flexibility as a cash buyer to negotiate favorable terms, whether that be a lower price or other concessions. Still, expect some back and forth as you get down into the details. 

7. Conduct an inspection and appraisal

Even when there’s no lender involved, it’s still important for you to schedule a home inspection and appraisal. These steps protect your investment and help you make an informed decision.

• Home inspections reveal potential issues with the property’s condition.
• Appraisals confirm the home’s value and ensure you’re not overpaying.

Skipping either can be risky, especially for cash buyers who typically want to close quicker.

8. Perform a title search

Before closing, you’ll need to verify that the title is clean, meaning it’s free of liens, disputes, or unpaid taxes. A title company or real estate attorney can handle this process, giving you peace of mind that your new home is legally yours.

9. Close the deal

Once everything checks out, it’s time to wrap things up. At closing, you’ll transfer funds, sign final paperwork, and get the keys to your new home. Without mortgage documentation to slow things down, this stage is typically simpler and quicker.

Should I buy a house in cash?

Buying a house with cash versus a mortgage isn’t a one-size-fits-all decision that works for everyone. For many buyers, financing has some important advantages. You can preserve your cash for other priorities, take advantage of tax benefits like mortgage interest deductions when you itemize, and potentially increase your purchasing power. 

At Zillow Home Loans*, we make the mortgage process easier with helpful tools, personalized support, and competitive rates. While you don’t need a mortgage to buy a house, financing your home purchase frees up your funds instead of tying them all up in the house. If you’re thinking twice about spending all your savings, a smart financing plan can help you make the most of your money.

*Zillow Home Loans; An equal housing lender. NMLS #10287

Disclaimer: This article is provided for educational and informational purposes only. It is not intended as legal, financial, or professional advice, and should not be relied upon as such. You should consult with a qualified attorney, financial advisor, or other licensed professional before making any decisions based on the information provided.