Cash for Homes in New York Buyers – Will I Get A Fair Price?
April 01, 2023

Selling a home is a significant life event for most people, often filled with emotional highs and lows, financial negotiations, and logistical complications. In a bustling real estate market like New York, the options available to homeowners can be overwhelming. One alternative that has gained popularity in recent years is the “cash for homes” method of selling a property.

While this option can seem incredibly appealing due to its convenience and speed, many homeowners find themselves questioning, “Will I get a fair price?”

Cash for Homes in New York Buyers – Will I Get A Fair Price?

The ‘Cash for Homes’ Concept

The “Cash for Homes” model has redefined the traditional channels through which real estate transactions occur. By eliminating the need for financial institutions to act as intermediaries, this method brings a new set of dynamics that both buyers and sellers should fully understand. Here’s a more detailed look at what the “Cash for Homes” concept entails:

Who Are the Cash Buyers?

Cash buyers can range from individual investors to real estate companies that specialize in quick home purchases. Some cash buyers aim to buy properties at a lower price, make improvements, and then either resell them at a higher price or rent them out. Others might be looking for properties to add to their personal portfolio. It’s also common for these buyers to be real estate investment trusts (REITs) that purchase homes on a larger scale.

Due Diligence

Cash buyers often have a streamlined process for evaluating a property. They may still opt for an inspection, but their primary focus is often on assessing the home’s market value quickly. The speed of this process is one of the key selling points but also a point of caution for the seller. Make sure you know your property’s worth beforehand to better evaluate the fairness of the offer you receive.

The Offer

Cash offers are usually straightforward but can come with conditions, such as a quick closing date or a waiver on certain types of inspections. These conditions often favor the buyer but offer the seller a quick and hassle-free transaction. Always review the terms carefully, and don’t hesitate to consult a real estate attorney to clarify any conditions you don’t understand.

No Financing Contingency

One of the most significant differences in a cash sale is the absence of a financing contingency. In a traditional sale, this contingency allows the buyer a specific period to secure a mortgage; if they fail, they can back out without losing their earnest money deposit. In a cash deal, this contingency doesn’t exist, making the transaction more certain.

Closing Costs

Another aspect to consider is the potential reduction in closing costs. Without a mortgage, certain fees—like loan origination charges—become irrelevant. However, the buyer may still expect the seller to cover some of the typical closing costs, like title insurance or escrow fees. This is a point of negotiation and can affect the final amount you receive for your property.

Tax Implications

It’s crucial to understand that while receiving a large sum of money quickly can be appealing, it can also have tax implications. Sellers should consult a tax advisor to fully understand the short and long-term tax ramifications of a cash sale.

Competitive Edge

Although it’s often thought that cash buyers are only interested in distressed properties or desperate sellers, that’s not always the case. A cash offer can be attractive even to sellers whose homes are in excellent condition and who aren’t under financial duress. The promise of a quick and certain sale can be enticing, giving cash buyers a competitive edge in a hot market.

Transparency and Communication

Due to the streamlined nature of cash transactions, clear and open communication is crucial. Both parties should be upfront about their expectations and requirements, and legal documentation should be carefully reviewed to ensure a smooth transaction.

The Pros

Stress-Free Process

Traditional real estate transactions involve multiple parties, inspections, and approvals, each of which adds layers of stress and complexity. In a cash sale, many of these variables are eliminated, making the process less stressful for the seller.

Bypass Repairs and Renovations

Many cash buyers are willing to purchase properties “as-is,” which can be a huge relief if your home requires significant repairs. You won’t have to worry about the financial burden or time-consuming hassle of fixing up your home before selling it.

Flexibility on Closing Date

Cash sales often allow for more flexibility on the closing date, providing an additional convenience to the seller. In some cases, cash buyers are willing to adjust the timeline to accommodate the seller’s schedule, whether that means a faster or delayed closing date.

Lower Risk of Transaction Falling Through

In a traditional sale, buyers can back out for numerous reasons—like failure to secure financing or unsatisfactory inspection results. Cash sales are often more reliable, as there are fewer contingencies that could jeopardize the deal.

Potential for Better Negotiation

Since cash buyers often value speed and efficiency, they may be more willing to negotiate on other aspects of the sale to close the deal quickly. For instance, they might be more amenable to covering closing costs or waiving certain fees.

No Appraisal Requirement

In standard transactions involving a mortgage, an appraisal is usually required. If the appraisal falls short of the agreed-upon price, it could derail the sale or force renegotiation. Cash sales eliminate this variable, making the process smoother.

Privacy and Discretion

Cash sales are often more private transactions. There are no multiple listing service (MLS) postings, no parade of prospective buyers touring your home, and often no yard signs or other marketing materials proclaiming the property is for sale. For sellers who value discretion, this can be a significant advantage.

Simplified Paperwork

Without a mortgage lender involved, the volume of paperwork required can be significantly reduced. Fewer forms to fill out and fewer documents to sign can streamline the entire process, making it faster and less cumbersome.

No Showings or Open Houses

The exhausting process of staging and showing the home is often skipped in a cash sale. This can be a considerable relief for sellers who are living in the property during the sale or those who value their privacy.

Quick Access to Funds

For sellers who need quick access to cash for another investment, to buy another property, or for any other reason, cash sales are the fastest way to liquidate real estate assets into usable funds.

By thoroughly understanding these advantages, sellers can better assess whether a cash sale aligns with their goals and circumstances. While the immediate financial gain may be less than what could be achieved through a traditional sale, the array of other benefits often tips the scale in favor of a cash transaction for many sellers.

The Cons

Lower Offers

Cash buyers know they are offering the convenience of a fast, guaranteed sale, and they generally expect a discount in return. The offer you get may be lower than what you could secure on the open market.

Lack of Competition

In a standard sale, especially in hot markets like New York, bidding wars can drive up the home’s price. Cash buyers are generally looking to avoid this sort of competition.

Risk of Scams

Although rare, there are fraudulent cash buyers out there. Ensure you’re dealing with a reputable company or individual. Always consult professionals when in doubt.

Will I Get a Fair Price?

The answer to this question is multi-faceted and dependent on various factors, such as the current market conditions, the urgency of your sale, and the condition of your home.

Market Research

One of the first steps to determine whether you’re getting a fair price is conducting market research. Understand what homes similar to yours are selling for in your area. This information will give you a ballpark figure to aim for and allow you to negotiate from a position of strength. If a cash buyer’s offer is significantly lower than the market rate, it may not be fair.

Professional Appraisal

For a more objective assessment, consider getting a professional appraisal. Though cash buyers usually don’t require one, an appraisal can give you a clearer picture of your home’s market value. You can compare this with the cash offer to gauge its fairness.

Cost of Repairs

If your house needs significant repairs, the costs can eat into your profit margin when selling through traditional means. Cash buyers often purchase “as-is,” meaning you won’t have to invest in fixing up the place. The savings here can sometimes make a lower cash offer more reasonable when compared to the full process of preparing a home for a traditional sale.

Time Value of Money

The old saying “time is money” holds particular relevance in real estate transactions. If you need immediate access to cash, the slightly lower offer from a cash buyer may be offset by the speed and certainty with which you can close the deal. Traditional sales can take several months, during which you might still be paying mortgage, taxes, and maintenance costs on the property.

Emotional Costs

Don’t underestimate the value of a stress-free sale, especially if you’re going through a significant life transition like a divorce, relocation, or the death of a family member. While it’s difficult to put a price on peace of mind, it’s undoubtedly worth something.

Risk Mitigation

The absence of contingencies like financing approval, home inspections, and appraisals also add value to a cash offer. The reduced risk of a deal falling through at the last minute is another factor that could make a lower cash offer more appealing.

The Competitive Landscape

In a hot real estate market like New York, you might assume that you could easily get multiple offers, sparking a bidding war that could push the price above the initial asking price. However, this isn’t guaranteed and comes with its own set of risks and uncertainties. A cash offer eliminates this gamble and gives you a sure path to a sale.

Seller’s Circumstances

Your personal circumstances can significantly influence your perception of a “fair” price. If you’re not in a rush to sell and have the financial stability to maintain your property while waiting for the “perfect” offer, a cash offer might seem low. Conversely, if you’re in a situation that demands a quick sale, the convenience of a cash transaction may make the offer seem more reasonable.


In summary, determining a “fair” price in a “Cash for Homes” transaction isn’t just about the dollar amount; it’s a multifaceted evaluation that considers market trends, the condition of your property, your financial needs, and personal timelines. Companies like DealHouse offer a streamlined approach to home selling, characterized by speed, convenience, and a degree of certainty that traditional methods often lack. While you might not receive the highest market price, the range of benefits—from quick closings to reduced emotional and financial stress—may well justify accepting a cash offer. Consulting with real estate professionals and financial advisors can help you make a fully informed decision that aligns with your unique circumstances.


Chris Chiarenza