- Compare net proceeds and timing, since sale price alone can mislead.
- Listing typically costs about 6% in commissions and fees, up to 2% in seller closing costs, and four to five months of holding costs.
- A move-in-ready home with time to wait usually nets more by listing.
- A home that needs major work, or a seller with a deadline, may come out ahead with a cash sale.
The sale price is only part of the story
When people compare a cash offer to listing, they often look only at the price. A listing will usually bring a higher price than a cash homebuyer pays. What matters is what you keep after costs, and how long it takes to get it.
Here are the main costs to account for when you list a home:
- Agent commissions and fees: about 6% of the sale price.
- Seller closing costs: up to about 2% of the sale price.
- Repairs and prep: anything needed to pass inspection or attract buyers, plus cleaning and staging.
- Holding costs: mortgage, taxes, insurance, utilities and upkeep while you wait.
- Time: about 90 days on the market, then about 30–60 days to close once you accept an offer.
A worked example on a $400,000 home
This is an illustration only. The numbers are hypothetical, chosen to show the math. Your home, your market and any real offer will differ.
Say your home would sell for $400,000 on the open market. Commissions and fees at about 6% come to $24,000. Seller closing costs at up to 2% add $8,000. That leaves $368,000 before repairs and holding costs.
Now add time. About 90 days on the market plus 30–60 days to close is roughly four to five months. If your mortgage interest, taxes, insurance and utilities run $2,500 a month, five months costs $12,500. You are now at about $355,500.
If the home is move-in ready, that may be the end of it. If it needs a new roof, updated systems or a full cleanout to sell at $400,000, say $30,000 of work, you are down to about $325,500, and the repairs may add weeks.
Compare that to a hypothetical as-is cash offer of $340,000 with no commissions, no closing costs and a closing in a few weeks. On the move-in-ready version of this house, listing nets about $15,500 more. On the version that needs work, the cash offer nets more and closes months sooner.
When listing is the better choice
To be fair about it: if your home is in good shape and you have time to wait, listing with a good agent usually puts more money in your pocket. The open market rewards updated, well-kept homes, and the costs of selling are easier to absorb when you don’t need repairs.
- Your home is move-in ready or needs only light touch-ups.
- You can comfortably cover the mortgage and bills for four to five months or longer.
- You don’t mind showings, open houses and buyer negotiations.
- You want the highest possible price and timing is flexible.
When a cash sale makes more sense
A cash sale trades some price for speed, certainty and less work. For some sellers that trade is worth it.
Certainty matters more than people expect. With a listing, a buyer’s loan can fall through, an inspection can reopen the price, or an appraisal can come in low. Each of those can send you back to the start of the clock. A cash homebuyer doesn’t need a lender’s approval, so there are fewer ways for the deal to stall.
- The house needs major repairs you can’t or don’t want to pay for.
- You face a deadline, such as a foreclosure sale date, a job move or an estate that needs to settle.
- You inherited the house, live far away or need to clear out a lifetime of belongings.
- Monthly holding costs are a real strain.
- You have tenants, or showings would be hard on your household.
How to compare offers side by side
Whatever route you take, compare your net, the amount you actually walk away with, on the same timeline. Ask an agent for a realistic sale price and a list of repairs buyers will expect. Get a written cash offer and ask exactly which fees and closing costs it covers. Then add up holding costs for each timeline.
If you want a cash number to compare, Sax Properties gives a no-obligation, all-cash offer, usually within 24 hours, and pays all closing costs with no fees or commissions. You can call 877-418-3443 and weigh our number against your listing estimate.
This guide is general information, not legal or financial advice. The example uses hypothetical numbers; talk with a real estate or financial professional about your own situation.