A traditional MLS sale costs: 5–6% realtor commissions, 2–3% seller closing costs, repair requests from buyers (1–3% of sale price on average), carrying costs during the listing period (mortgage, taxes, insurance, utilities), and staging or prep costs. On a $400k home, these total $35k–$55k before you see a dime.
A cash offer has no commissions, no repair requests, no staging, and closes in 2–3 weeks instead of 60–90 days. The purchase price is lower — but the net proceeds gap is often smaller than sellers expect once you subtract the full cost of a traditional sale.
In a hot seller's market with a move-in ready home, listing almost always nets more. When buyers are competing and waiving contingencies, the premium over a cash offer is real.
Distressed properties, inherited homes, divorce situations, pre-foreclosure, and sellers who need to close fast all favor cash. The certainty and speed of a cash close has real value that doesn't show up in the purchase price comparison.
Get a net sheet for both options: cash offer net proceeds vs. estimated MLS net after all costs and timeline. The difference in take-home money is often $15k–$30k, not $60k–$80k as sellers initially assume.
Dan White is a licensed Virginia real estate agent at Pearson Smith Realty and founder of FreeDealCalc.com. He works with sellers in Northern Virginia as a licensed Pearson Smith Realty agent and as a cash buyer through HSS Home Sale Solutions.