Should I take cash or higher loan offer?

Hate to answer a question with a question -- is the financed buyer income/asset verified? Are there a lack of other contingencies. I would look at the big picture before making a decision

Sometimes the finance offer can be better. They have more skin in the game!

Go back and ask the cash offer to meet you in the middle.

Congratulations on getting two offers, that is a great position to be in. I get this question a lot here in Florida and it really comes down to net and risk, not just the price on paper. The 400k financed offer looks better at first glance, but you have to factor in the risk of it actually closing. With a mortgage you have financing approval, appraisal, underwriting, and timelines, and if the appraisal comes in low that buyer may try to renegotiate or walk, which puts you back on the market. The 385k cash offer is usually cleaner with no financing, often no appraisal, and typically a quicker, more predictable closing, so that certainty can definitely be worth something. I would try to bring the cash offer up. What I usually look at with my sellers is how much the buyer is putting down and whether they are willing to cover an appraisal gap, along with timelines and contingencies and how much room there is for things to go sideways. That 15k difference is really the risk premium, because if the financed deal falls apart or gets renegotiated, you could easily lose that amount or more in time, price reductions, or missed opportunities.

As long as there are no issues with the property that would prevent financing, or concerns that the property will not appraise, I would not walk away from $15,000. Counter the cash buyers at $400k, and if they don't come up, take the financed offer.