A cash offer is almost always a lower price than a successful listing, but it can be the same or better money in your pocket once you count commissions, repairs, and months of carrying costs. Which one wins depends on your house, your timeline, and how much hassle you want.
We buy houses for a living, so we are not neutral. We will be straight about when listing is the better move, because a seller who picks the wrong option is not a seller we want.
What a listing really costs
The list price is not what you take home. Subtract:
- Agent commissions. Often around 5 to 6 percent of the sale price in total, though they vary.
- Seller closing costs. Title fees and prorated taxes.
- Buyer credits. Almost every deal we see includes them. The buyer asks the seller to pay their closing costs and more, and these requests often come after the inspection, when you are already committed.
- Repairs and prep. Buyers who finance with an FHA or VA loan may require repairs. Inspections often lead to repair requests or price cuts.
- Carrying costs. Mortgage, taxes, insurance, and utilities every month the house is on the market.
- Time. Showings, open houses, and the chance a buyer's financing falls through.
What a cash offer really costs
With a company like ours the math is simpler:
- No agent commissions and no fees charged to you.
- No repairs, cleaning, or staging. We buy as-is.
- No showings.
- A closing date you choose, typically in 21 to 30 days.
The cost is the price itself. We have to cover repairs and resale risk and earn a margin, so our offer is below what a fully fixed-up house might sell for.
A worked example (made-up numbers)
Say a house could sell for $200,000 if fully repaired and well presented. These figures are for illustration only. Yours will differ.
Listing it:
- Commissions at 6 percent: $12,000
- Seller closing costs: $3,000
- Buyer credits (asking you to cover their closing costs and more): $6,000
- Repairs and prep to get it market-ready: $15,000
- Four months of carrying costs at $1,200: $4,800
- Net to you: about $159,000, in roughly four months
Cash offer:
- A cash offer in this scenario might land in the same range, with no repairs, no commissions, and a close in about three weeks.
The gap can go either direction. A house in excellent condition with no rush will often net more listed. A house that needs significant work, or an owner who needs to move quickly, often nets about the same or more with a cash sale.
The part nobody tells you about listing
Most sellers sign with the agent who promises the highest price. Some agents will tell you what you want to hear to win the listing, and agree to list the house for whatever number you are hoping for. They know the price will need to come down later.
Then the listing agreement matters. These contracts can lock you in with that agent for months, and in some cases 6 to 12 months, no matter how the sale goes. So the price drops, the weeks pass, and the carrying costs keep running, while you are stuck with the agent and the first price they agreed to.
That does not describe every agent, and there are good ones. But it is common enough that you should know it before you sign anything. If you do list, ask for a short agreement with a clear way out, and be wary of any price well above what similar nearby houses have actually sold for.
When listing is the better choice
- The house is in good shape and needs little or no work.
- You are not in a hurry and can handle months of showings.
- The neighborhood is hot and homes sell quickly at full price.
When a cash offer makes more sense
- The house needs repairs you cannot afford or do not want to manage.
- The home is inherited, vacant, or tied up with tenants.
- You are facing foreclosure, divorce, relocation, or another deadline.
- You value certainty. A cash sale does not depend on a buyer's loan approval.
How to decide in one afternoon
- Look up what similar houses near you have actually sold for in the last few months. Sold prices, not asking prices, tell you what buyers really pay.
- Add up the costs from the list above using your own numbers, including buyer credits, repairs, and carrying costs.
- Get a cash offer from us and from at least one other buyer so you can compare.
- Compare the net amount and the time, not just the headline price. If you decide to list, keep the agreement short and make sure it has an exit.
We are happy to be one of the offers you compare. Request yours here, and we will explain exactly how we arrived at the number. No obligation, and no pressure to say yes.