Cash buyer vs. listing with an agent: how to choose

There's no single right way to sell a house. The best choice depends on the house's condition, your timeline, and how much time and money you want to put in before closing. Here's a fair look at both paths.

Listing with an agent

An agent markets your house to the public and negotiates with buyers on your behalf.

• Price: often the highest sale price, especially for a well-kept, move-in-ready house.
• Costs: commissions (typically a percentage of the sale price), plus any repairs, cleaning or staging, and the seller's share of closing costs.
• Time: preparing the house, showings, and waiting for a buyer and their financing.
• Certainty: deals can fall through over inspections, appraisals or financing.

Selling to a cash buyer

A cash buyer, like a real estate investment company, buys the house directly from you.

• Price: below full retail, because the buyer takes on repairs, holding costs and risk.
• Costs: usually no commissions, and many cash buyers cover normal closing costs. Check your written offer.
• Time: often a few weeks, depending on title, and you can usually pick the date.
• Convenience: no repairs, cleaning or showings; leave behind what you don't want.

Compare the net, not just the price

The number that matters is what you walk away with. For a listing, start with the expected sale price and subtract commissions, repairs, months of mortgage, taxes, insurance and utilities while it's on the market, and your share of closing costs. Compare that with a cash offer where those costs are covered.

When each option tends to fit

• Listing often fits a house in good condition when you have time and don't mind showings.
• A cash sale often fits when the house needs significant work, has tenants, is inherited or vacant, or when you need a predictable closing date.

Protect yourself with either choice

Get everything in writing, close through a licensed title company, and never pay an upfront fee to a buyer. If a buyer may assign the contract to someone else, that should be disclosed in writing before you sign.

Curious how the numbers compare for your house? Get a cash offer and weigh it against listing — no obligation.