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  • Writer's pictureTeam Pinto

Should You Sell Your Waterloo Region Home for Cash? What to Know About Cash Offers

You may be considering selling your Waterloo Region home for a variety of reasons, including relocating to a new city, downsizing to a condo, or tapping into the equity in your property. However, if you need to sell your home quickly, you might want to explore selling it for cash.

The allure of a cash offer is there: you can sell your home quickly for cash and move into your new home in as little as a few weeks. Is selling your property for cash, however, any different from selling a house in the traditional way? Is it possible that someone will be able to make a cash offer on your house? We have the information you need to understand more about these questions and more.

What is a Cash Offer on a Waterloo Region Home?

When a potential buyer makes an all-cash offer, it means there is no mortgage or other kind of financing involving a mortgage provider. Because there is no chance of a buyer's mortgage financing falling through, these bids might be more enticing to sellers. Because there is no waiting for the mortgage underwriting process to complete, all-cash offers often have faster closing dates, which is something some homesellers are specifically looking for.

The number of cash offers you receive may be determined by the local property market, the condition of your home, or whether you look for a cash offer online. Keep in mind that a cash buyer's offer may be lower than a buyer with a mortgage, depending on the type of homebuyer. However, there may be a variety of reasons why you might want to sell your property for cash, even if the offer is lower than other bids.

Who Buys Properties for Cash These Days?

There are various categories of purchasers who may bid on your house with a cash offer. Here are some examples of typical cash home buyers:

Buyers Who Want to Make a Statement

To stand out from the crowd, potential homebuyers may submit a cash offer. In a seller's market, where there are more buyers than properties available, bidding wars are more likely, this is more prevalent.

Companies that Buy Houses for Cash

Often, you'll notice signs around neighborhoods and increasingly online promoting companies that will purchase your property for cash. Companies that buy houses are typically looking for homeowners who need to sell their home quickly for financial reasons. If you choose to sell your property to a company that buys houses for cash, keep in mind that you may only receive 50-70 percent of its true value.

House Flippers

House flippers may make you a cash offer if your home is more of a fixer-upper. They'll buy your house as-is, renovate it, and resell it for a higher profit. House flippers, like cash for homes firms, may offer less than your home is worth. Many house flippers adhere to the 70% rule, which states that they will not offer you more than 70% of your home's after-repair value (ARV).


Some cash bidders are real estate investors that want to transform your home into an investment or rental property. If you sell your home to a foreign investor for cash, though, you may not be able to close as quickly. A non-Canadian citizen purchasing a home and completing the closing process may take longer for a variety of reasons.

What Factors Should You Take into Account Before Selling Your Waterloo Region Home for Cash?

The reasons for listing your property for sale are unique to you as a home seller. And, in order to have the best possible home sale outcome, you have to choose the right way to sell for you, not someone else. Here are a few reasons why selling your house for cash might be the best option for you, along with a few why it might not.

It is the best deal

A cash offer may simply be the best one, whether it's because it's the best price, the quickest closing, or certain contingencies are eliminated.

You have a rental or investment property

If you're having trouble finding a new tenant for your rental or investment property and need to sell it quickly an all cash deal can be a great solution to the problem.

You recently inherited a home

If you recently inherited a home from a loved one and don't have the time or financial means to maintain it or turn it into a rental property.

You need to use the equity in your home

Depending on where you are in life, you may need to quickly access the equity in your property.

You're getting ready to move and need money for a down payment

You may need to use the equity in your present house to make a downpayment if you're buying a new home or relocating quickly. Instead of taking out a second mortgage or a bridge loan for a downpayment, having this cash on hand can make it easier to buy your next home.

The Pros and Cons of an All Cash Sale

When selling your home for cash versus a standard sale, there are some pros and cons to keep in mind. Some of these may assist you in determining whether selling your house to a cash buyer is the best option for you.

Fewer contingencies: A cash offer is likely to have fewer contingencies. Buyers will not require a mortgage contingency, but they may request other home-buying contingencies.

There's also less risk of a buyer's financing falling through when you sell your house to a cash buyer.

No appraisals: Before approving a mortgage loan, a home appraisal is nearly usually required. Because a cash offer on a house does not include a mortgage, an appraisal is not usually required. You should bar in mind though that even a cash buyer will probably order a home inspection, and the deal could change based on the results of that.

Shorter closing time: Because you won't have to wait for a mortgage application or underwriting, you might be able to close in as little as two weeks. This timetable can change however because you still need the buyer's proof of finances and time to finish the closing process.

Another thing to keep in mind is that the financial offer isn't definitive until the contract is signed. Be aware that some purchasers may demand additional price concessions for repairs or that you make improvements to the home before they purchase it. This can also happen with a standard offer, where a potential buyer may request repairs after a property inspection.

Key Takeaways

When it's time to sell your Waterloo Region home, think about your current situation as well as what you hope to earn from a cash sale. If you sell your property for cash, you'll have a lower chance of the buyer's financing falling through, a faster closing procedure, and the possibility of avoiding conditions and an appraisal.

On the downside, the offer may be lower than a traditionally financed offer, and in a hot market, if you have the time to wait a little longer for the deal to be finalized it may be worth taking a higher financed offer instead.

If you work with an experienced local real estate agent when selling your home, one of the things thy can help you with is go through all the offers received on your Waterloo Region home for sale and examine each of them carefully, weigh all the pros and cons of each of them and help ensure that whichever one of them you do eventually accept it is the right one for you.

Getting ready to sell your Waterloo Region home, or buy a new one? Let Team Pinto use our huge experience and expertise to help you. Contact the award-winning Team Pinto here, or book a free Zoom consultation to discuss your unique Waterloo Region real estate needs here.



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