When selling your home in Memphis, one of the first things you’ll notice is the variety of buyers and offers that come your way. From individual investors to large groups of Memphis home buyers, the competition can feel overwhelming. But one factor often determines how smoothly your sale goes: whether the offer is cash or contingent.
Cash offers typically promise speed and certainty, while contingent offers can bring higher prices but also more delays and risks. Let’s break down how these two types of offers compare in terms of speed, safety, and profitability.
What Are Cash vs. Contingent Offers?
- Cash Offer: A buyer pays the full price with available funds, skipping lender approval and streamlining the process.
- Contingent Offer: The sale depends on conditions like mortgage approval, home inspection, appraisal, or the buyer selling their current home first.
Knowing which one works best for your goals is key to a smooth sale.
Average Days to Close: Cash vs. Contingent
- Cash Sales in Memphis: Typically close within 7–14 days.
- Contingent (Mortgage-Backed) Sales: Take 30–45 days, and sometimes longer if issues arise with financing or appraisals.
Comparison Table: Cash vs. Contingent
| Factor | Cash Offer | Contingent Offer |
|---|---|---|
| Average Days to Close | 7–14 days | 30–45 days (sometimes 60+) |
| Certainty of Closing | Very high (no lender risk) | Lower (depends on financing, appraisal) |
| Risk of Falling Through | Low (<5%) | Higher (15–25%) |
| Profit Potential | Slightly lower offers, but certain | Higher offers, but more risk/delays |
| Stress Level | Lower – simple & fast | Higher – long process, more paperwork |
| Ideal For | Sellers needing speed/assurance | Sellers aiming for max price with time |
Timeline Visual
Cash Sale Timeline (10 days average):
- Day 1–2: Offer accepted + proof of funds provided.
- Day 3–5: Title search completed.
- Day 6–7: Closing scheduled.
- Day 8–10: Seller receives payment.
Contingent Sale Timeline (35–45 days average):
- Day 1–3: Offer accepted, loan application submitted.
- Day 4–10: Inspection + appraisal ordered.
- Day 11–20: Lender underwriting in progress.
- Day 21–30: Possible renegotiations.
- Day 31–40: Final approval from lender.
- Day 41–45: Closing completed (if all goes well).
This simple side-by-side makes it clear why cash often wins when speed matters most.
Why Many Sellers Lean Toward Cash
- Speed: 2-week closings beat 2-month delays.
- Simplicity: No lender conditions, less paperwork.
- Certainty: With proof of funds, sellers know the deal will close.
For these reasons, many sellers often prefer direct buyers or companies that buy houses in Memphis rather than waiting on contingent buyers tied to banks.
When Contingent Offers Still Work
If your timeline is flexible and you’re focused on maximizing profit, contingent offers can be worth the wait. Buyers using mortgages often pay closer to retail value. But with contingencies, there’s a risk of falling through.
Sellers who choose contingent deals must be prepared for longer timelines, more negotiations, and the possibility of starting over if financing fails.
Profitability Breakdown
- Cash: Slightly lower purchase prices but faster closing saves carrying costs (mortgage, insurance, utilities, taxes).
- Contingent: Higher offers on paper, but delays or failed financing can cut into actual profit.
In Memphis, carrying costs average $50–$100/day, meaning a 30-day delay could cost $1,500–$3,000. That’s why sometimes the lower cash offer nets more overall.
Practical Tips for Memphis Sellers
- Always request proof of funds for cash deals.
- Compare net profit, not just the sticker price.
- Research the buyer’s reputation before signing.
- Choose based on your priority—speed, certainty, or max price.
Final Thoughts
Choosing between cash and contingent offers comes down to your goals. If you want quick certainty, cash is the winner. If you’re patient and want top dollar, contingent might work.
Either way, working with legitimate home buyers in Memphis ensures you don’t fall victim to shady practices. With the right buyer and the right approach, you’ll get the sale you need on your terms.
Frequently Asked Questions (FAQs)
1. How fast do cash sales close in Memphis?
Most cash sales close in 7–14 days, compared to 30–45 days for contingent offers.
2. Do cash buyers always pay less?
Cash offers are often slightly below market, but sellers save money by avoiding delays, repairs, and carrying costs.
3. Why do contingent offers fall through?
They depend on mortgage approval, appraisals, and inspections—any of which can cause delays or cancellations.
4. Should I take the first cash offer I get?
Not necessarily. Always check proof of funds and review the buyer’s reputation before signing.
5. Who are the most reliable buyers in Memphis?
Work with legitimate home buyers in Memphis who have strong reviews, verified funds, and a track record of closing deals.