Two offers land on a Henrico, Chesterfield or Richmond listing: one higher and financed, one lower and cash. The higher number is not automatically the better one. What you keep after closing depends on the contract terms wrapped around the price, how likely each deal is to reach the closing table, and what each buyer can still walk away from. This guide shows how to line the offers up, uses a clearly hypothetical example to do the arithmetic, and flags what a cash offer does and does not take off the table.
Start with the terms that move your net
Price is one line on a contract. These are the others, in roughly the order they change the outcome:
- Financing contingency. A financed buyer usually has a window to get loan approval, and can cancel if the loan falls through. A cash buyer has no loan to lose.
- Appraisal contingency. With a mortgage, the lender orders an appraisal. The Consumer Financial Protection Bureau notes that the lender may need a new appraisal when a buyer borrows to purchase, and it is the lender who initiates it. If the number comes in below the contract price, the deal has to be renegotiated, funded another way or ended.
- Inspection terms. The length of the inspection period and whether the buyer may ask for repairs, credits or a price change shape how firm the price really is. See our guide to pre-listing inspections if you want fewer surprises.
- Seller concessions. A credit toward the buyer’s closing costs comes straight off your proceeds. Our post on seller concessions in Richmond explains how they work, and the seller-paid rate buydown guide covers one common form.
- Closing date and occupancy. A faster close saves you carrying costs such as the mortgage payment, taxes, insurance and utilities. A slower one may suit you if you need time to move, which is where a rent-back after closing comes in.
- Earnest money. How much is deposited, when, and who gets it if the deal fails.
- Proof of funds or loan approval. Evidence the buyer can actually perform.
Earnest money and proof of funds: what the sources say
The CFPB’s mortgage key terms page describes earnest money as a deposit showing a buyer’s commitment when signing a purchase contract. A third party holds the funds, and they are applied toward closing costs or the down payment if the sale completes. If the buyer terminates for valid reasons, the buyer gets the deposit back; otherwise the seller may keep it.
In Virginia, a real estate broker holding the deposit has rules to follow. Under Virginia Code section 54.1-2108.2, the deposit goes into the firm’s escrow account by the end of the fifth business banking day after the contract is ratified, unless the parties agree otherwise in writing. When the parties disagree about who is entitled to the money, the statute lets a broker send written notice that the funds will be released unless a written protest arrives within 15 calendar days, and says the broker is not required to decide who is entitled to them. A broker may also file an interpleader action so a court takes custody of the funds. The Virginia Real Estate Board’s regulation 18VAC135-20-181 (effective April 1, 2026 on the page I read) requires that deposits be held in labeled escrow accounts separate from a broker’s operating funds.
I did not find a primary source that sets a standard for proof-of-funds letters, so I will not claim one exists. In practice, you and your agent decide what you will accept: a recent bank or brokerage statement, or a lender’s approval letter. What matters for comparison is the trail behind it. A cash buyer who documents funds, offers a meaningful deposit and keeps few contingencies is easier to rely on than the same buyer with vague paperwork.
Why a lower cash offer can beat a higher financed one
Time is part of the price. The August 2026 figures below show a median days on market of 22 across the Richmond metro, with a median single-family sale price of $450,000.
Median sales price and days on market, August 2026, county-level and city-level
| Area (locality level) | Single-family median | Median days on market | Closed sales |
|---|---|---|---|
| Richmond City | $403,500 | 26 | 163 |
| Chesterfield County | $453,975 | 22 | 372 |
| Henrico County | $425,000 | 18 | 229 |
| Hanover County | $510,000 | 24 | 107 |
| Goochland County (small sample) | $688,702 | 30 | 33 |
| Powhatan County (small sample) | $551,975 | 19 | 24 |
| Richmond Metro | $450,000 | 22 | 871 |
County- and city-wide figures, not neighborhood figures. Goochland and Powhatan had fewer than 35 closings, which does not support a stable median. Source: Central Virginia Regional MLS, via the Richmond Association of REALTORS sortable monthly statistics, August 2026 table, current as of September 10, 2026.
[DATA NEEDED: median price per square foot, August 2026, by area. Not published in the free sortable tables.]
Those are medians for whole counties, so they say little about your street. They do show that in a typical sale the listing period is measured in weeks, so a deal that adds weeks of waiting is a real cost. How much a delay costs you depends on your own carrying costs and your next move.
A worked example with hypothetical numbers
Say you own a home and receive two offers.
- Offer A, cash: $390,000, closing in 14 days, no concessions.
- Offer B, financed: $400,000, closing in 45 days, the buyer asks for $8,000 in closing cost help, with a financing and an appraisal contingency.
For simplicity, assume costs that scale with the price (commission, transfer taxes and similar) are 6 percent of the sale price, and that carrying the house costs $100 per day until closing. Everything else is assumed equal.
| Line | Offer A (cash) | Offer B (financed) | Offer B if appraisal is $385,000 |
|---|---|---|---|
| Price | $390,000 | $400,000 | $385,000 |
| Price-based costs at 6% | -$23,400 | -$24,000 | -$23,100 |
| Concessions | $0 | -$8,000 | -$8,000 |
| Carrying cost at $100 per day | -$1,400 (14 days) | -$4,500 (45 days) | -$4,500 (45 days) |
| Hypothetical net | $365,200 | $363,500 | $349,400 |
In this made-up case the $10,000 higher price is gone before closing: the cash offer nets $1,700 more. If the appraisal comes in $15,000 below the contract price and the seller agrees to reprice to the appraised value, the cash offer nets $15,800 more. Change the assumptions and the answer changes, which is the point. If the financed buyer brought no concession request, offer B would win. Run your own numbers with the actual contract terms, and use our cost-to-sell guide and the post on Virginia grantor tax and recordation fees to replace my flat 6 percent with real line items.
Find out what your home is worth before you compare offers
The comparison above starts with a believable price. If you want a number to measure offers against, request a free home valuation and we will walk you through how your price lines up with recent sales near you.
What a cash buyer does and does not remove
A cash buyer removes the lender. That takes out the loan approval risk and, because there is no lender ordering an appraisal, the usual lender appraisal gap. Read the contract anyway: a cash buyer can still write an appraisal clause into it. A cash buyer does not remove the inspection. The buyer can still inspect, ask for repairs or credits, or cancel within the contract’s inspection terms. Nor does cash remove title work. Title searches, liens and recorded easements are the same, and our guide to pulling a deed or chain of title shows what a title search reveals, while the post on title insurance explains what an owner’s policy covers. Paying cash does not stop a buyer from changing their mind where the contract allows it.
Judging the odds that each deal closes
Fall-through risk is a judgment, not a number I can source for the Richmond area. Compare how many exits each buyer keeps: loan approval, appraisal, inspection, sale of another home, and deposit size. A financed buyer with a pre-approval from a lender, a solid deposit and a short inspection period can be a safer bet than a cash buyer with a small deposit and a long inspection window. Our posts on the period between approval and closing and underwriting conditions after contract show where a financed deal can still stumble, and our pricing guide helps you decide how much price flexibility to trade for certainty. Browse recently sold properties to see how comparable homes closed, or read about how we sell homes.
This guide is general information, not legal advice. For your situation, talk to a Virginia real estate attorney about the contract, deposit and title questions.
Get your free home valuation first
Before you weigh one offer against another, know the number. Request a free home valuation and bring it to the conversation about price, terms and timing.
Frequently asked questions about comparing cash and financed offers
Is a cash offer always safer for the seller?
No. Cash removes loan approval risk, but inspection, title and any appraisal clause in the contract can still end the deal. Compare the deposit, the inspection period and how well the buyer documents funds.
How fast does a seller get a deposit into escrow in Virginia?
Under Virginia Code section 54.1-2108.2, the broker places it in the firm escrow account by the end of the fifth business banking day after ratification unless the parties agree otherwise in writing.
What happens if buyer and seller disagree about the deposit?
The statute does not make the broker the judge. A broker may send written notice that the funds will be released unless a written protest arrives within 15 calendar days, or may file an interpleader action so a court holds the funds.
What should count as proof of funds?
There is no standard I could source. Common choices are a recent bank or brokerage statement or a lender approval letter. Decide with your agent before you sign.
Can I accept a lower offer if the buyer offers a faster closing?
Yes, if your net is higher once you count carrying costs and concessions, as the hypothetical table shows. Replace the assumed numbers with your own.
Does a seller concession affect what I take home?
Yes. A credit toward the buyer’s closing costs reduces your proceeds dollar for dollar. Count it in your net.
If the appraisal is low on a financed offer, what are my options?
The CFPB lists renegotiating the price or canceling the sale as options for the buyer, and notes cancellation costs depend on the contract. As the seller you can also hold your price, split the gap, or relist.
Does a rent-back change which offer is best?
It can. A buyer who lets you stay after closing may be worth a lower price if you need time to move, but you should check the occupancy terms in the contract with an attorney.
