When an individual pays cash for a house, the process is only slightly different than when the buyer gets a mortgage. Taking the lender out of the equation decreases the chances of the deal falling through. It also eliminates the time it would take for the financing to be approved. Buyers may still include contingencies in the contract (in fact a home inspection is always recommended), but they won’t be based on a lender’s rigid requirements.
Skipping the step of getting financing is replaced by proof from a bank that the buyer does indeed have the funds. Even though it is called a cash sale, the money changes hands at closing either by electronic transfer or with a cashier’s check.
Aside from that, the title will still need to be cleared of leans, and the buyer must get homeowners insurance as with any home purchase. Closing costs will be the same except for lender’s fees. In these sales, real estate agents can be involved just like in any other home sale, so their commissions are due from the seller at closing.