Last updated October 28, 2026
“Cash” can describe how a buyer plans to pay, not money they have today. In April 2025, a buyer offered $72,500 cash for a condo at 2832 Blackforest Drive, Unit D, with inspections waived. The cash was coming from the sale of their home in Hawaii, scheduled to close two days before ours. Step into my seat, make the calls, then read how each one played out.
What did the offer look like?
$72,500 for the condo on April 12, 2025, with $725 earnest money, inspections waived and a May 7 closing. It was described as a cash purchase, using the proceeds from the buyer’s home in Hawaii, which was scheduled to close May 5.
So the “cash” depended on a different closing, on the other side of the Pacific, two days before ours.
Was the proof of funds really proof?
Not of spendable cash. On April 15, the buyer’s agent sent an estimated settlement statement for the Hawaii sale and documents showing the funds the buyer expected, but no one could verify the exact cash that would be available.
I forwarded it to the seller on April 16. On April 17 the seller chose to proceed, and I asked the buyer’s agent to keep us updated on any problems. How to tell whether a cash buyer is real →
What happened when the other sale slipped?
Our closing date came and went. On May 9, the buyer’s agent told us the Hawaii sale was delayed: that home’s buyer was overseas, and their lender required an embassy signing, with the earliest appointment reportedly May 19. The agent asked whether the seller would extend or agree to a mutual release.
On May 12, the buyer’s side reported more uncertainty about the money and floated a different arrangement. Nothing shows the seller accepted it.
Who kept the earnest money?
The seller. On May 13, I told the title company the buyer was surrendering the earnest money and the release was being signed. On May 15, the fully signed release gave the $725 to the seller, and title confirmed it.
That came from a release both sides signed, not from a rule that a seller automatically keeps earnest money when a buyer can’t close. Cash offers in St. Louis, decoded →
How much earnest money should a cash buyer put down?
More than this. My standing advice on cash deals is 10% earnest money. This one was 1%, $725 on a $72,500 condo, which is about what you’d see from a financed buyer.
On a cash offer that depends on another closing, the earnest money is a big part of the seller’s protection. Here the seller got the $725, but lost about a month on the market.
What should sellers take from this sale?
“Cash” is a payment method, not proof the money exists. Find out where it’s coming from and when, and size the earnest money to the risk.
Is a cash offer always lower risk?
No. If the cash depends on the buyer selling another home, the offer carries that home’s risks: its buyer, its lender, its timeline. Here an overseas buyer’s embassy signing delayed a Hawaii closing and sank a St. Louis one.
What should a seller ask a cash buyer for?
Proof of funds that shows money available now, not an estimated settlement statement. If the money depends on another sale, ask for that sale’s contract and closing date, and plan for it to slip.
What protects a seller if a cash buyer can’t close?
The contract terms and the earnest money. A larger deposit gives the seller more if the buyer can’t perform, and gives the buyer more reason to be sure they can.
Questions This Sale Helps Answer
What is a home-sale contingency?
A term that makes the purchase depend on the buyer selling another property. This offer was contingent on the buyer’s Hawaii home closing May 5.
Does a seller always keep the earnest money if the buyer can’t close?
No. It depends on the contract and on what both sides sign. Here the buyer agreed to surrender it, and the signed release gave the seller the $725.
Does waiving inspections make an offer safe?
It removes one way out, but not the others. This buyer waived inspections, and the sale still failed on money.
More in this series: Lessons From a Sale · Three $300,000 offers, sold for $302,000 · Related: Cash offers in St. Louis · Proof of funds · Should you take a cash offer?
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.