Sellers can simply choose the highest offer even if it has a loan contingency.
I never got the whole “cash offer is king I’ll take that over the higher financed offer” thing.
If I get an offer that includes a bank statement showing the ability to easily put 25% down and a preapproval letter for the whole amount, I will take that over a cash offer 1% lower.
Maybe “cash offer” is being used as a short-hand for “very firm no-BS offer” and the buyers who complain about losing out to lower cash offers have shaky finances and picky contingencies.
I also have some solidarity with people who don’t have huge piles of cash, as long as they show me strong evidence they can get financing.
