Definition
A cash buyer is someone who purchases property outright using available funds rather than borrowing from a bank. Legitimate cash buyers can back up their offer with proof of funds — a bank statement or a letter from wherever the money sits — on request. Because no lender has to approve the purchase, there's no underwriting stage where the deal can suddenly collapse. For a seller, that distinction matters enormously: a financed buyer's approval can fall apart over a new car loan or a low appraisal, while a real cash buyer's ability to close rarely changes once they've made an offer. Not every buyer who says “cash” actually has it, though, so it's worth verifying before you take a house off the market for them.
Example
Devon had two offers on his duplex: $290,000 from a buyer needing a 45-day mortgage approval, or $278,000 in cash closing in ten days with no repairs required. He'd already been burned once by a financed buyer whose loan fell through after three weeks of waiting over a job change, so he was wary of going through that again with a house he badly needed to sell. This time he asked the cash buyer for proof of funds before agreeing to anything, and the buyer sent a bank statement showing more than enough on deposit to cover the purchase. Devon also asked about the title company handling the closing and got a straight answer within an hour. He took the smaller, certain number and signed a purchase agreement the same week. Ten days later Devon walked away with a check and no more mortgage, tax, or insurance payments on a duplex he'd been struggling to maintain. He never worried about an appraisal, a loan officer changing their mind, or a buyer's financing falling apart at the last minute.