TL;DR — the short version
Cash makes your offer simpler, not automatically cheaper. You skip the loan approval and appraisal requirement, but you still want an inspection, a title search and a clear closing timeline.
Don’t empty every account. Many downsizers keep a cushion for moving, repairs and the first property tax bill, especially since there’s no mortgage escrow paying those taxes for you.
You can pull cash back out later. Fannie Mae’s “delayed financing” exception can allow a cash-out refinance within six months of an all-cash purchase if the rules are met.
A recast is the middle ground. If you take a mortgage, a large principal payment after you sell can lower your monthly payment on many conventional loans without a full refinance.
Wire fraud is the biggest cash-buyer risk. The FBI logged about $275 million in real estate fraud losses in 2025. Always confirm wiring instructions by phone with a number you already trust.
If you’ve sold the family home in Overland Park, Leawood or Shawnee, you may be sitting on enough equity to buy your next place outright. Paying cash can make you a strong buyer and leave you with no house payment in retirement. It also changes how the purchase works, and a few of those changes catch people off guard.
This guide covers what actually happens when you buy with cash, when it makes sense to keep some money liquid and how to protect a large wire. If you haven’t decided whether to sell or buy first, start with Sell First or Buy First? A Downsizer’s Guide for Johnson County.
1. What Changes When You Pay Cash
What you skip
With a mortgage | With cash |
|---|---|
Loan application, underwriting and a Loan Estimate | No loan approval needed |
Lender-required appraisal | Appraisal is optional |
Financing contingency in your offer | No financing contingency |
Lender’s title policy and lender fees | No lender fees |
Monthly escrow for taxes and insurance | You pay taxes and insurance directly |
Sellers often like cash offers because there’s less that can fall apart before closing. That can help in a competitive listing, but it doesn’t guarantee a lower price. Your offer still needs to be priced right for the home.
What you should keep
A home inspection. Without a lender, nobody requires one. Get it anyway. Roof, HVAC, sewer line and radon are just as important on a villa or ranch as on a family home.
A title search and owner’s title insurance. The title company confirms there are no liens or ownership problems. The owner’s policy is your protection, and it matters whether or not you have a loan.
An appraisal if you’re unsure about value. You can order one yourself if the price feels high or comparable sales are thin.
What to do: Write your cash offer with the same inspection protections you would use with a loan. Speed is an advantage, but giving up the inspection to win isn’t worth it.
2. Proof of Funds and Timing
Sellers will usually ask for proof of funds with your offer. That’s typically a recent bank or brokerage statement showing enough money to close. You can black out account numbers.
If your money is still tied up in the home you’re selling, you aren’t truly a cash buyer yet. In that case you’d either make the purchase contingent on your sale, line up a bridge loan or HELOC, or wait until your sale closes. Those options are compared in Sell First or Buy First?.
Where the sale proceeds sit
After your sale closes, the proceeds often land in a checking or savings account for a few weeks. FDIC insurance generally covers up to $250,000 per depositor, per insured bank, for each account ownership category (FDIC). If your balance will be well above that, talk with your bank or financial advisor about how to hold it until closing.
What to do: Ask the title company early how they want funds delivered and how many days before closing they need them. Moving money out of a brokerage account can take a few business days.
3. Should You Pay All Cash? Three Options
Paying cash isn’t all or nothing. Here’s how the common approaches compare.
Approach | How it works | Good fit if… |
|---|---|---|
All cash | Buy outright, no mortgage | You want no payment and still have a healthy cushion |
Cash now, refinance later | Buy with cash, then use delayed financing to pull some back out | You want to win with cash but rebuild savings |
Mortgage, then recast | Finance the purchase, then pay down principal after your sale | You need to buy before your old home sells |
Delayed financing
Fannie Mae’s Selling Guide has a “delayed financing” exception. If you bought the home with no mortgage financing, you may be able to do a cash-out refinance within six months of the purchase instead of waiting the usual period. The rules include an arm’s-length purchase, a settlement statement showing no financing was used, no liens on the property and documented sources for the money you used. The new loan can’t exceed what you put into the purchase plus certain closing costs, and cash-out pricing applies (Fannie Mae).
Recasting
A recast means you make a large lump-sum payment on your mortgage and the lender recalculates your monthly payment on the lower balance. Your rate and term stay the same. Many conventional loans allow it for a modest fee, but most FHA, VA and USDA loans can’t be recast. Minimum payment amounts vary by servicer.
What to do: Before you decide, ask a lender whether your loan would be recastable and what the fee and minimum payment are. Get it in writing if a recast is your plan.
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4. Life Without Escrow: Property Taxes and Insurance
When you have a mortgage, your lender usually collects taxes and homeowners insurance each month and pays them for you. Buy with cash and those bills come to you.
Johnson County property tax timing
Johnson County mails real estate tax statements in the fall. In recent years, the first half has been due around Dec. 20 and the second half around May 10, adjusted for weekends. For the 2025 tax year, the first half was due Dec. 22, 2025, and the second half May 11, 2026 (Johnson County). You can view and pay bills online at taxbill.jocogov.org.
What happens at closing
Your title company will prorate the current year’s taxes between you and the seller. Ask who will pay the upcoming bill and whether the statement will go to the seller or to you. A missed first-half payment on a new home is an easy mistake to make.
Homeowners insurance
Lenders require coverage, but cash buyers don’t have anyone checking. Have a policy in place and effective on your closing day.
What to do: Put both tax due dates and your insurance renewal date on your calendar the week you close. If you’re 65 or older, also check whether you qualify for Kansas property tax relief through the Kansas Department of Revenue.
5. Protect Your Wire
Cash buyers often wire a large amount at once, which makes them a target. The FBI’s 2025 Internet Crime Report counted 12,368 real estate fraud complaints and about $275 million in losses (ALTA). A common scam is a fake email that looks like it’s from your title company or agent, with “updated” wiring instructions.
Get wiring instructions directly from the title company, in person or through their secure portal.
Call the title company at a phone number you found yourself, not one in an email, to confirm the account details.
Treat any last-minute change to instructions as a red flag. Real title companies rarely change them.
Call to confirm the funds arrived the same day you send them.
If something feels wrong, call your bank right away and file a report at ic3.gov.
What to do: Tell your family members who help with your finances about this process too. Scammers sometimes target adult children who are helping a parent move.
Frequently Asked Questions
Do I need an appraisal if I pay cash for a house?
No. Appraisals are required by lenders, not by law, so a cash buyer can skip it. Many cash buyers still order one if they’re unsure the price matches the market.
Should I still get a home inspection as a cash buyer?
Yes. No one will require it, but an inspection is your best protection against expensive surprises like roof, HVAC or sewer problems.
Can I get money back out after buying a house with cash?
Often, yes. Fannie Mae’s delayed financing exception may allow a cash-out refinance within six months of an all-cash purchase if no financing was used, the funds are documented and other requirements are met.
Who pays property taxes if I don’t have a mortgage in Johnson County?
You do. Without an escrow account, you pay the Johnson County Treasurer directly. Recently, first-half taxes have been due around Dec. 20 and second-half taxes around May 10.
Is it better to pay cash or get a mortgage when downsizing?
It depends on how much cushion you’ll have left and what that money could do elsewhere. Talk with your financial advisor, and compare all cash, cash with delayed financing, and a mortgage you recast after your sale.
Related Resources
The Johnson County Downsizing Guide — free step-by-step guide
Sell First or Buy First? A Downsizer’s Guide for Johnson County
This article is general information, not financial, legal, lending or tax advice. Loan rules, tax due dates and relief programs change, so confirm details with your lender, title company, financial advisor or the Johnson County Treasurer before you make decisions.
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The Johnson County Downsizing Guide
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