The most common mistake sellers make is comparing a cash offer to a list price. The list price is not what you take home. What matters is your net: the money left after every cost of getting the house sold. Here is how to compare the two honestly.
The costs of a traditional listing
- Agent commission. Commonly 5–6% of the sale price in total.
- Repairs and prep. Paint, flooring, landscaping, and whatever the listing agent says the house needs to compete.
- Inspection concessions. After inspection, buyers routinely ask for repairs or credits.
- Holding costs. Mortgage, property taxes, insurance and utilities every month until closing, often 60–90 days or more.
- Seller closing costs. In Georgia this includes the state transfer tax (one dollar per thousand of the sale price) plus attorney and other fees.
A worked example
Here is an illustrative example for a house that needs some work and would sell for about $250,000 once it was fixed up and listed. Your numbers will be different, but the structure is the same.
| Traditional listing | Amount |
|---|---|
| Sale price | $250,000 |
| Agent commission (6%) | −$15,000 |
| Repairs and prep before listing | −$12,000 |
| Inspection repairs or credits | −$4,000 |
| Holding costs (3 months) | −$5,400 |
| Seller closing costs | −$2,500 |
| Estimated net before mortgage payoff | $211,100 |
| Cash sale | Amount |
|---|---|
| Cash offer | $205,000 |
| Commission | $0 |
| Repairs | $0 |
| Normal closing costs (paid by buyer) | $0 |
| Estimated net before mortgage payoff | $205,000 |
In this example the listing nets about $6,000 more on paper, but it takes three or more months, requires $12,000 in repairs up front, and depends on a buyer’s financing and inspection going smoothly. The cash sale closes in as little as 7 days with a guaranteed number. Neither is right for everyone. The point is to compare net against net.
What can swing the math
- Bigger repairs make listing less attractive fast, because you pay for them before you see a dime.
- Time pressure such as foreclosure, a relocation date, or a vacant house costing you money every month favors certainty.
- A house in great shape favors listing. If yours is move-in ready, list it.