How Long Does it Take to Close on a House With Cash?


If you are lucky enough to have the resources to buy a home with cash, you benefit from a faster closing. Buying a home with cash means there are fewer stipulations you must satisfy in order to get to the closing table.

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Just how much faster can you close on a home when you buy it with cash? It depends on the situation and the conditions you put on the purchase yourself.

The Appraisal

You should always pay for an appraisal before you buy a home, even if you aren’t using bank financing. Wouldn’t you want to know how much the home is worth? What if it’s worth much less than you agreed to pay the seller? You’d make a bad investment, which obviously isn’t something you want to do.

The good news is that you are somewhat in control with the appraisal. You call and order it and arrange the time with the seller. Chances are the seller is just as motivated as you to get the closing done, so they will likely get the appraiser in quickly too.

Once the appraisal report comes back, you can make sure that the home is worth at least as much as you offered. The appraiser bases the value on the recent sales in the area, so you can take the report with a grain of salt if you want, but it is a decent measure of the value of the home.

The Inspection

Again, just because you are paying cash doesn’t mean you should skip important things like the inspection. An inspector can go through the home with a fine-toothed comb and tell you everything that is wrong with it.

If the roof is leaking or the plumbing system is faulty, you may not want to buy the house. If you do, you may want to offer less money so that you have money to fix the issues with the home that you weren’t aware of before. The inspector will provide you with a detailed report regarding the condition of the home so that you can make a decision from there.

The Title Search

The final item you’ll need is the title search. You need to know if the seller has the right to sell the home. The title search will answer that question as well as show if there are any liens on the property. If there are liens, they transfer with the property, not the owner. If you become the new owner and there are liens, they become your responsibility. You obviously want to avoid that.

A title search will show you the chain of ownership and prove that the seller has the right to sell the home. For example, if there is an ex-spouse still on the title or the owner holds the title in trust, there are extra steps the title company must take before they can legally transfer the property to you. Paying for the title search as well as title insurance protects your interests in the property.

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Closing on the Purchase

After you take all of the above steps, you can close on your home purchase. Just how long does it take? It could be a few days or a few weeks. It depends on the level of cooperation from everyone involved in the transaction. Some cash purchases close in as little as seven days while others take a few weeks.

It depends on what you find out with all of the above reports. If the home has issues, will you negotiate the cost or ask the seller to fix the issues first? If you want the seller to fix them, it will add time to the process. If the home has title issues, you will have to wait until they are resolved, which can take anywhere from a few days to a few months. Finally, if there are appraisal issues, you’ll have to decide how to proceed. If the seller willingly lowers the price, you may be in good hands. If he doesn’t, you’ll have to decide whether you want to buy the home or not.

Buying a house with cash definitely makes the process move faster, but it can still take some time. Buying a house is a large investment; you want to enter it with caution. Take your time and make sure the home is in good condition and ready to be transferred before you sign any documents.

Meta Description: Buying a house with cash can be done in as little as seven days, but it often takes longer due to the work everyone must do.

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