Benefits of Selling a House for Cash in MN

Navigating the real estate market can be stressful and time-consuming. Between finding an agent, scheduling showings, and waiting for your potential buyer to qualify for financing, selling your home can feel like a daunting task.

A growing number of homeowners are opting for cash sales to bypass this process entirely. 

There are many benefits of selling a house for cash, starting with a shorter and simpler sale process. Here’s what you need to know about cash home buyers and accepting cash offers.

couple selling to cash home buyer

What Are Cash Home Buyers?

A cash home buyer is a person or a business who purchases properties with lump sums of cash rather than using financing. Cash offers now make up 36% of the real estate market.

Some cash buyers are wealthy individuals looking for a new home or an investment property, but you can also find companies that specialize in buying homes for cash. These companies typically offer a fast selling process and will walk you through the process of how to sell a house to a cash buyer.

How Cash Home Buyers Work in Minnesota

What happens when you sell your house for cash? It’s a simple process:

  • The buyer will make a cash offer.
  • If you decide to accept this offer, you’ll both sign a contract.
  • Depending on the contract you signed, there might be requirements both parties have to meet.
  • You can sell your home “as is” or sell it to a buyer who will request an inspection.
  • The buyer will verify that the title is clear.
  • You can then sign the closing documents and entirely bypass the process of the buyer in obtaining financing. 

Benefits of Working with Cash Home Buyers

There are some benefits of selling a house for cash to a buyer if you want to sell fast, avoid fees, and want a simple process.

No Realtor Fees

During a typical home sale, you’ll usually end up working with two realtors. One will represent the seller, and the other will work for the buyer.

These two realtors will share a percentage of the home sale, which is usually around 6% of the total sale amount. The seller pays this commission since it comes out of the selling price.

Realtors play an important role in sales that involve financing. They can help with vetting potential buyers, schedule inspections and appraisals, and assist buyers while they secure financing.

With a cash sale, there is no need to work with a realtor. Cash home buyers in Minnesota have the experience required to schedule an inspection if needed and to make sure that the house title is clear.

Selling a house without a realtor will translate into getting more money in your pocket.

Easy House Selling Process

Even though most serious buyers get pre-approved for a mortgage before they start shopping around for a home, the lender plays an important part during the initial steps of the sale:

The mortgage lender can’t issue a loan until they have verified that the value of the home corresponds to the asking price. They will order an appraisal, which can sometimes come back lower than what the buyer offered, meaning you’ll have to settle for a lower price or find another buyer.

Mortgage lenders also need to make sure the home is in good condition, especially with FHA loans that have to meet certain federal guidelines regarding the state of the property that the buyer is financing. If the inspection reveals some problems, you might have to pay for repairs before the sale can go through.

Several things can delay the buyer in obtaining financing. Any changes in their employment or financial situation between the time you accept the offer and the closing date can cause financing to fall through.

Companies that buy houses in Minneapolis offer a much simpler selling process. Because there is no mortgage issuer involved, you’ll receive cash directly from the buyer and won’t have to wait for them to obtain financing.

No Hidden Costs

Another benefit of selling your home for cash is that you’ll get an initial offer that outlines how much you can get for your house as well as any costs associated with the sale.

One of the issues with selling your home to a buyer who is using a mortgage is that additional costs can come up during the sale process. These costs can include:

  • The appraisal and inspection.
  • Title research.
  • Repairs to the property.
  • Agent commission.
  • Property taxes.
  • House insurance.
  • Title insurance.

The good news is that the buyer typically covers all these costs at closing, except the realtor commission. However, it can be difficult to assess the total amount the buyer will have to pay in closing costs. In some cases, the buyer ends up being short and has to ask for closing cost credits.

The seller covers closing cost credits, which means they get less for the sale. Offering a closing cost credit is something you might have to do so the sale goes through.

Selling a House at Your Speed

On average, houses stay on the market for 24 days. Once you accept an offer, it usually takes 46 days before you can close due to the time it takes for the buyer to secure financing. It could take a little over two months to sell your home, provided that the buyer can get financing.

If financing falls through for the buyer, you’ll have to relist your home. You might have to settle for a lower price and wait even longer since potential buyers might be wary of a home that you were unable to sell the first time around.

Is it better to sell a house for cash? The answer is yes if you want to move out quickly. You can sell your house in 5 days if you’re willing to accept a cash offer.

Deciding Your Leaving Date

Selling your home means you have to make it appealing to a potential buyer. One of the things you can do to attract buyers is to add a clause to the sale contract that says you will vacate the property shortly after the sale.

It’s usually something you can negotiate with the buyer, but you should know that the new owner can charge you a daily occupancy fee if you fail to move out in time. Plus, pushing back your move-out date can make your property less appealing to buyers.

You have a lot more flexibility with companies that buy houses for cash. These businesses purchase homes and resell them, which means they’re not worried about occupancy.

If you need a flexible leaving date, selling your home for cash is a better option.

Things to Consider When Selling Your House for Cash

Things to Consider When Selling Your House for Cash

Should I Sell my house to a cash buyer? There are some important things to consider to answer this question:

  • How much is your house worth? Regardless of how you decide to sell your home, it’s always a good idea to get an appraisal first. Prices can fluctuate a lot as your local market changes, and it might surprise you to find out how much more your house is worth.
  • How much is the cash buyer offer? Is there room for negotiation? Go over the terms of the offer carefully. Would you get enough cash to pay off your mortgage and relocate?
  • It’s important to research the current market. Find out what similar houses are going for in your area. Accepting a cash offer can be more interesting when inventory levels are high and attracting potential buyers is harder because you have to compete with other sellers.
  • Are you selling your home ‘as is’? Obtaining financing for a fixer-upper can be difficult, which is why accepting a cash offer usually makes more sense for houses in need of extensive repairs.
  • Would you be willing to invest in a few repairs to boost the value of your home? If you can afford to invest in your home, you might be able to get a larger cash offer by doing a few repairs first.
  • Ask yourself how fast you would like to sell your home. If they offer you your dream job and need to relocate within a couple of weeks, selling your home for cash will make more sense.
  • Choose the right cash home buyer. You should do some research before accepting a cash offer. Verify that the buyer has enough cash available, find out if they have closed any similar sales in your area, and make sure they have a good reputation.


From selling your house quickly to avoiding fees, there are many benefits of selling a house for cash. However, it’s important to choose a reliable cash buyer who can make a competitive offer and who has immediately available cash.

With Mill City Home Buyers, you have the peace of mind to know that you’ll get a fair cash offer and a simple selling process. Take a look at our recent case study to get a better idea of how much you could get for your home and what to expect when selling your home for cash.


Kevin is a real estate investor dedicated to helping homeowners sell their properties quickly and without the stress and hassle of a traditional listing.

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