Last updated October 13, 2026
A strong cash offer isn’t just a price. It’s a price backed by money you can verify, from a buyer who will close on the terms you signed. Checking that isn’t being difficult. It’s basic seller protection, and a real cash buyer expects it. Whether to take a cash offer at all is a separate question: should you take a cash offer?
Ask for current proof of funds before you sign, verify the institution yourself, match the name on the funds to the buyer on the contract, and ask for earnest money of 10% of the price. Then ask who will actually close. A real buyer answers all of it without making you feel guilty for asking.
Before. A buyer who says proof of funds will come after you sign is asking you to take the first risk. Don’t take your home off the market on a promise.
No. It shows the buyer appears to have access to enough money. It doesn’t remove the contract terms that let them walk away or lower the price, so read those too. Contract red flags ↓
To learn your motivation and timeline, and what kind of solution will appeal to you. That isn’t a bad question by itself, but your answer shapes the pitch. If your pain point is repairs, they’ll emphasize buying as-is. If it’s time, they’ll emphasize a fast closing. If it’s privacy, no showings. The conversation can shift from price to relief: “You won’t have to make repairs.” “Leave anything you don’t want.” Those can be real benefits, but every benefit has a price.
Some buyers use future pacing, helping you picture life after the sale: no more repairs, no more tenant calls, no more family arguments. Selling a problem property really can bring relief. If you feel relieved before you’ve checked the math, pause.
You can be honest without giving away every pressure point. Share what’s relevant, then ask your own questions: how they calculated the offer, what repairs they subtracted and what terms come with it. The question only becomes a concern if the buyer uses your answer to rush you or to avoid explaining the numbers.
Ask for the offer and terms in writing, compare your options, and run the number through the Cash Offer Decoder before you sign. Some urgency is real, but “this offer is only good today” is often a sales tool. You shouldn’t sign before you understand the assignment rights, inspection terms, earnest money, closing timeline and your alternatives.
Four things: the financial institution, the account holder or borrowing entity, a recent date, and an available balance or credit line big enough to close. It can be a bank statement, credit union letter, hard-money lender letter, brokerage statement or title-company verification.
The date matters. A document from six months ago doesn’t prove the buyer can close now. The name matters too. If the buyer on the contract is “ABC Homes LLC” but the funds belong to a different person or company, ask how they’re related.
So does the amount. If the price is $150,000 and the buyer shows $151,000, that’s weaker than it looks. Closing costs, title charges, lender fees, assignment fees, immediate repairs and reserves all draw on the same money.
Full account numbers, unrelated transactions and balances above what the purchase needs. The document should still show the institution, the date, the owner or entity and enough money to support the purchase. Sensitive numbers can be redacted. The existence of the funds can’t. If everything meaningful is blacked out, it isn’t proof. It’s decoration.
Look it up yourself. Don’t call a phone number printed on the letter until you’ve independently found the bank, credit union, lender or brokerage. Fake proof-of-funds letters are often impressive-looking PDFs with phone numbers and institutions you can’t verify.
Questions that cover the money, the contract, the timing and the cost. If an answer is vague out loud, ask for it in writing before the contract is signed.
To check their math, see how cash buyers calculate offers. If the contract can be assigned, read how assignment contracts work.
Terms that let the buyer walk away cheaply or reprice later. Watch for these before you sign:
If a buyer does lower the price after you sign, see what retrading is and how to respond.
I’ve always recommended 10% of the price on a cash deal. If you’re taking an off-market offer, ask for more. The 1% you’ll hear about is typical for a retail sale with a financed buyer, not for an investor who’s asking you to skip the open market. Earnest money is what the buyer loses by walking away, so the more they put down, the less room they have to back out or retrade.
It depends on the contract. Many “cash” contracts still include an inspection or due diligence period that lets the buyer walk. Before you sign, know how much earnest money is at stake, whether it’s refundable and when the buyer can exit.
Decode the math before you decide. See how the number was built and what you would net on the MLS instead.
Open Cash Offer Decoder →
Grew up in South St. Louis, lived in Dogtown for 6 years, now in South County. You'll find us at Wellspring on Lindbergh on Sundays. I'm not selling you a house — I'm showing you how to think about buying or selling a house.