To buy a house without a realtor for cash, you negotiate the price directly with the seller, put the terms in a written purchase agreement, run your own inspections and title search, close through an escrow or title company (with an attorney if your state requires one), wire the balance, and record the deed with the county. You take on the work an agent and lender would normally coordinate, but you also keep control of every decision and avoid commission costs.
The steps below walk through what you actually have to do, in the order you have to do them.
Write the Purchase Agreement
Once you and the seller agree on a price, the deal only becomes real when it’s in writing. The purchase agreement is the legal spine of the transaction and should include the full legal names of all parties, the purchase price, the closing date, and any conditions either side has to meet before the sale is final. Many state bar associations and real estate commissions publish standardized forms that already comply with local property laws, and those are a safer starting point than a generic template off the internet.
The contract needs an accurate legal description of the property, not just the street address. You can pull the legal description from the current deed or from the county tax assessor’s records. It will use either metes and bounds or a lot and block number from a recorded plat.
Spell out the earnest money, too. That’s the deposit you put up to show you’re serious, typically 1 to 2 percent of the purchase price, held in escrow until closing.
Give the Seller Proof of Funds
Because there’s no lender vouching for you, the seller will want to see that the money actually exists. Ask your bank for a proof-of-funds letter on official letterhead, showing your name, confirmation that your balance meets or exceeds the purchase price, and a recent date. Sellers tend to want a letter dated close to the offer, so request a fresh one shortly before you submit.
Do Your Own Due Diligence
A lender would normally force an appraisal and demand certain disclosures. Without one, that protection is on you.
Get a Home Inspection
A licensed home inspector checks the structure, roof, plumbing, electrical, HVAC, and appliances and gives you a written report. Inspections usually run $200 to $500 depending on the home’s size and take two to four hours. Build an inspection contingency into your purchase agreement, commonly 7 to 14 days, so you have time to review the report and renegotiate for repairs or a price cut if something turns up. Without that contingency, a bad finding leaves you with no leverage.
Order specialized inspections separately if the property raises specific concerns — termites, radon, mold, or the sewer line are the common ones.
Confirm the Lead-Based Paint Disclosure
If the home was built before 1978, federal law requires the seller to give you a lead-based paint disclosure before you’re bound by the contract. The seller has to disclose any known lead-based paint or hazards, hand over any related inspection reports they have, and provide the EPA pamphlet “Protect Your Family From Lead in Your Home.”1Office of the Law Revision Counsel. 42 USC 4852d – Disclosure of Information Concerning Lead Upon Transfer of Residential Property The contract itself must include a Lead Warning Statement, and you get at least 10 days to arrange your own lead inspection unless you and the seller agree otherwise.2US EPA. Lead-Based Paint Disclosure Rule (Section 1018 of Title X)
A seller who knowingly skips this disclosure faces civil penalties of up to $22,263 per violation.3eCFR. 24 CFR 30.65 – Failure to Disclose Lead-Based Paint Hazards If the seller never provides the disclosure, you generally have the right to cancel the contract without losing your earnest money.
Review State Seller Disclosures
Most states also require a property disclosure statement covering the home’s physical condition. The seller lists known defects like roof leaks, foundation cracks, water damage, faulty wiring, or non-working appliances. The exact form, what it covers, and the deadline for delivering it vary by state, but it’s typically due before or shortly after the contract is signed. Read every section, and confirm the seller has signed and initialed each page. If the seller won’t provide required disclosures, you can usually walk and get your deposit back.
Request HOA Documents
If the home is in a homeowners association, ask for the governing documents and a resale disclosure certificate before you finalize. The certificate should show current assessments, any approved special assessments, unpaid dues or fines attached to the unit, the reserve fund balance, the most recent budget and financials, and any pending lawsuits involving the HOA. Those details tell you whether you’re buying into a stable community or a financial mess. The HOA may charge a fee to prepare the certificate.
Order a Title Search and Owner’s Title Insurance
A title company searches public records to confirm the seller actually owns the property and can legally sell it. The search surfaces outstanding liens — unpaid property taxes, contractor claims, judgments, existing mortgages — that have to be cleared before closing. The results come back as a preliminary title report, which also lists easements, encroachments, and use restrictions.
Public records don’t catch everything. Forged deeds, undisclosed heirs, and recording errors can all surface years later. An owner’s title insurance policy covers your legal defense and losses if someone later makes a valid claim against your ownership. It’s a one-time premium paid at closing, usually 0.5 to 1 percent of the purchase price. A lender would require it; on a cash deal the choice is yours, but skipping it leaves you personally exposed.
When You Must Hire a Real Estate Attorney
Several states require an attorney to be present at or supervise a residential real estate closing, including Connecticut, Delaware, Georgia, Massachusetts, South Carolina, Vermont, and West Virginia. In parts of New York, North Carolina, Illinois, and some others, attorney involvement is standard practice even where it isn’t strictly mandated. If you’re buying in one of those places, you’ll hire an attorney whether or not you use a realtor.
In states that don’t require it, hiring one is still worth considering when you’re the only person on your side of the deal. An attorney can review the purchase agreement, examine title documents, verify the disclosures are complete, and oversee the closing. The fee is small next to the cost of a flawed contract on a six-figure purchase.
Federal Reporting You Need to Know
IRS Form 8300 and Cash Payments
Anyone in a trade or business who receives more than $10,000 in cash in a single transaction, or in related transactions, has to file IRS Form 8300 within 15 days.4Internal Revenue Service. Form 8300 and Reporting Cash Payments of Over $10,000 In a cash home purchase that obligation usually falls on the party receiving the funds, often the seller or the escrow company. “Cash” here means physical currency; a wire transfer from a bank account doesn’t count. But cashier’s checks, money orders, and traveler’s checks under $10,000 each can be aggregated and trigger the filing if combined they exceed the threshold.5Office of the Law Revision Counsel. 26 U.S. Code 6050I – Returns Relating to Cash Received in Trade or Business
FIRPTA Withholding If the Seller Is Foreign
If the seller is a foreign person or entity, meaning not a U.S. citizen or resident, you as the buyer must withhold 15 percent of the total amount realized on the sale and send it to the IRS on Form 8288.6Internal Revenue Service. FIRPTA Withholding Fail to withhold and you become personally liable for the tax the seller owes. There’s one key exception: if you’re an individual buying the property as your personal residence and the price is $300,000 or less, no withholding is required.7Internal Revenue Service. Exceptions From FIRPTA Withholding The simplest way to confirm the seller isn’t foreign is to get a signed certification under penalty of perjury giving the seller’s name, U.S. taxpayer identification number, and address.
Budget for Closing Costs
Paying cash eliminates lender fees like loan origination and mortgage insurance, but plenty of other costs stay. These are typically settled at closing:
- Title search and escrow fees charged by the title company and escrow agent, varying by property value and location.
- Owner’s title insurance, a one-time premium of roughly 0.5 to 1 percent of the purchase price.
- Transfer taxes charged by the state and sometimes the county or city. State rates range from zero to as high as 3 percent, with local taxes stacked on top in some places.
- Recording fees charged by the county recorder, varying by jurisdiction and document length.
- Notary fees for acknowledging signatures on the deed, often $2 to $25 per notarization under state rate caps, plus a travel charge if you use a mobile notary.
- Prorated property taxes and utilities split between you and the seller based on the closing date.
- Home inspection, usually $200 to $500.
- Attorney fees, if you hire one or your state requires one.
The escrow agent calculates each side’s share and disburses funds at closing.
Close, Wire the Funds, and Record the Deed
Choose the Right Deed
The deed is what actually transfers ownership. In most arm’s-length sales you want a warranty deed, in which the seller guarantees they hold clear title, have the right to sell, and that no undisclosed claims exist against the property. If a title problem surfaces later, a warranty deed gives you legal recourse against the seller. A quitclaim deed transfers only whatever interest the seller happens to have, with no promises about its quality. Quitclaims are common between family members or in divorce settlements but offer little protection in a standard purchase.
Send the Final Payment Safely
When contingencies are satisfied and closing day arrives, you send the remaining balance, less the earnest money already in escrow, to the escrow account. Most closings use a bank wire for the final payment, and the escrow officer will provide the receiving bank’s name, routing number, and account number.
Wire fraud aimed at real estate closings is a serious and growing problem. Criminals hack or spoof email accounts and send buyers fake wiring instructions that route the money to themselves. Before you wire a dollar, call the escrow officer or title company at a phone number you obtained independently, not one from any email, and confirm the wire details by voice. Don’t rely on emailed instructions, even from someone you trust. Call again right after sending to confirm the funds arrived.
Record the Deed
After escrow confirms your funds and all signatures are notarized, the signed deed goes to the county recorder’s office. Recording places your ownership in the public record and puts the world on notice that the property is yours. The recorder stamps the deed with a recording number and date, and at that point the transfer is legally complete. You take possession on the date set in the purchase agreement.