Cash Offer vs Listing With an Agent: A Fair Side-by-Side

If you’re deciding how to sell, the honest answer is that both routes work, just for different houses and different people. This page compares a cash offer vs listing with an agent side by side, with no made-up statistics: what each route costs, how long it takes, what can go wrong, and how to work out your own net number. I’m Joe, owner of Richmond Property Buyers. I make cash offers for a living, so I’ll tell you up front when listing is likely the better choice.

The side-by-side

Two items are worth spelling out. Virginia’s grantor tax is set by statute at 50 cents per $500 of the price, about 0.1%, and the law places it on the seller. When you list, it comes out of your proceeds along with the settlement charges. When you sell to me, I pay the closing costs, including the grantor tax and the settlement charges. The other item is the same either way: your mortgage and any liens are paid off from the proceeds at closing.

Cash offer vs listing with an agent: working out your own net

You don’t need my numbers or an agent’s. You can run both routes yourself. Here are the formulas, with every piece something you can get in writing.

Listing net ≈ expected sale price − commission (the rate in your listing agreement × the price) − grantor tax (price × 0.1%) − other settlement charges − repairs and prep before listing − credits or repairs negotiated after the inspection − holding costs × months until closing − loan payoff

Cash sale net ≈ my written offer − mortgage and lien payoffs − your prorated share of the year’s property taxes

Nothing else comes off your side in a sale to me. I pay the closing costs, including the settlement charges and the grantor tax, and there’s no commission.

Where to get each input:

• Expected sale price: a comparative market analysis from one or two local agents, based on your home’s actual condition, not the renovated house down the street.
• Commission: ask each agent for their rate in writing. It’s negotiable.
• Repairs and prep: contractor estimates, plus a cushion. Inspections on older homes often turn up items you didn’t know about.
• Holding costs: your monthly mortgage interest, taxes, insurance, utilities, HOA dues, and upkeep. Multiply by a realistic number of months. Ask agents how long comparable homes near you have taken to go under contract and close.
• Loan payoff: request a payoff statement from your servicer. It’s usually higher than the balance on your monthly statement because of accrued interest.

If the listing net clearly beats the cash net once you’ve filled in real numbers, list the house. If they’re close, the deciding factors are usually time, certainty, and how much work you’re willing to do.

When listing is probably the better choice

• The house is in good, updated condition and would appeal to buyers with ordinary financing
• You have a few months and can keep up the payments while it’s on the market
• There are no title, estate, or occupancy problems that would scare off a financed buyer
• Getting the highest possible price matters more to you than speed or convenience

In that situation, a good listing agent will usually get you more than I would.

When a cash sale tends to make more sense

• The house needs work a lender or inspector would flag: roof, foundation, electrical, water damage
• There’s a deadline: a foreclosure sale date (see how Virginia foreclosure works), a job move, or an estate that needs to close
• It’s occupied by tenants, or by someone who won’t cooperate with showings
• It’s an inherited house full of belongings, and nobody has time to clear it out
• There’s an open code violation, or the house is vacant and costing you every month
• You want one walkthrough, one written number, and a date you can plan around

The decision usually comes down to these conditions more than to price alone. Some sellers get a cash offer first and use it as a floor while they talk to agents. That’s a perfectly sensible way to decide.

Questions to ask any cash buyer, including me

• Are you buying it, or assigning the contract? Some “cash buyers” sign a contract and then sell that contract to someone else. Read the buyer name and any assignment clause. On my side: when it helps close faster, I sometimes partner with other local investors, and I’ll tell you up front who is on the contract.
• Who is the settlement agent? A title company or closing attorney should be holding the deposit and handling the closing. Don’t hand money to a buyer directly.
• Is there an inspection period, and how long is it? A long walk-away window can mean your house sits off the market while the buyer decides.
• Can you show proof of funds? A real cash buyer can.
• Will you put the price and closing date in writing? If they won’t, move on.

Questions to ask a listing agent

• What will you list it at, and what comparable sales support that price given my home’s condition?
• What’s your commission, and what else will I be asked to pay?
• What repairs do you expect buyers’ inspectors to ask for?
• How long have similar homes near me taken to sell recently?

For how a sale with me works from start to finish, see how the process works. Other common questions, like disclosures, liens, and taxes, are answered on my FAQ page. When you’re ready to compare real numbers, call (804) 293-0208, request a cash offer, or fill out the form below.

Questions about cash offers and listings