A cash offer is lower than a retail list price, but list price is not what you take home. To compare honestly, subtract from the listing scenario: agent commission, seller closing costs, the repairs an inspector will demand, months of carrying costs, and a realistic probability that the first contract fails. Run both numbers on your own property before deciding. For a house in good condition with a patient seller, listing usually wins. For a house that cannot be insured or financed, a cash sale is often the only route that closes at all.
Set up the comparison properly
The mistake is comparing a cash offer to a list price. Compare net to net.
Listing scenario, what comes off the top
- Agent commission. Historically five to six percent total in Florida. Commission structures have been changing, so get your agent’s actual number in writing rather than assuming.
- Seller closing costs. In Florida the seller customarily pays documentary stamp tax on the deed, at 70 cents per 100 dollars of consideration in every county except Miami-Dade, plus title and recording costs depending on county custom.
- Pre-listing work. Paint, cleaning, landscaping, storage, and whatever your agent says has to go.
- Post-inspection repairs or credits. Assume this happens, because it usually does.
- Carrying costs. Mortgage, taxes, insurance, utilities, HOA, lawn care, for every month it takes.
- Concessions. Buyers increasingly ask for closing cost help or a rate buydown.
Cash scenario, what comes off the top
- Nothing, other than your existing payoff, liens and prorated taxes.
Run it on a worked example
Take a Florida house that would list at 300,000 dollars in good condition, but which currently needs a roof, has an old panel, and has original plumbing.
| Listing | Amount |
|---|---|
| List price achieved | 285,000 |
| Commission at 5.5% | -15,675 |
| Seller closing costs and doc stamps | -2,800 |
| Pre-listing prep | -3,500 |
| Roof required to make it insurable | -18,000 |
| Panel and plumbing items after inspection | -7,000 |
| Carrying costs, 4 months | -6,400 |
| Buyer closing cost concession | -4,000 |
| Net to seller | 227,625 |
Against a cash offer on the same house, as-is, with no commission and no concessions, the gap narrows sharply, and in some cases closes entirely. The numbers above are illustrative, not a quote. Put your own figures in, because the answer genuinely varies by property.
The factors that are not money
Some of what you are buying with a cash sale does not show up in a spreadsheet.
- Certainty. A meaningful share of financed contracts fail, most often on financing or insurance. A cash contract has no lender to fail.
- Date control. You pick the closing date rather than waiting on an underwriter.
- No repair capital. If you do not have 25,000 dollars for a roof and a panel, the listing scenario above is not available to you at any price.
- No showings. Meaningful if you are still living there, working, or have tenants.
When listing is clearly the right answer
We tell sellers this regularly and mean it. If the house is in decent shape, insurable, you can absorb the repair requests, you have two or three months, and there is no title or lien problem, list it. You will net more. A cash sale is for when speed, certainty or condition is the binding constraint, not as a default.
Questions
Frequently asked
What percentage of value do cash buyers pay?
Anyone quoting a fixed percentage sight unseen is guessing. It depends on condition, repair scope, holding time and local resale values. Ask any buyer to show you the comparable sales and repair figures behind their number.
Are there hidden fees with a cash buyer?
There should not be. Ask directly whether there is any commission, assignment fee, admin fee, or charge of any kind, and get the answer in writing before you sign.
What is a wholesaler?
Someone who puts your house under contract and then sells that contract to an actual buyer for a fee. That is a legitimate business, but it means the person you are dealing with is not the buyer and the deal may be reassigned. Ask directly: are you the buyer, or will you assign this contract?
Can I get a cash offer and still list?
Yes, and it is a sensible approach. A written cash offer is a floor you can measure a listing strategy against.