What Is a Cash Offer Really Worth? How to Evaluate an Offer on Your Home

When a cash buyer offers you $250,000 for a home you think could sell for $300,000 on the MLS, is that a rip-off — or a fair deal? The honest answer: it depends on the true cost of the “higher” MLS number after commissions, repairs, holding costs, and time. Here’s the math most people don’t do.

The Real Math on a “Higher” MLS Sale

Let’s say a Realtor tells you your home would list at $300,000. Here’s what typically comes out:

• Realtor commissions (5-6%): −$18,000
• Buyer concessions (typical): −$6,000
• Pre-listing repairs & staging: −$5,000-15,000
• Inspection-driven repair credits: −$3,000-8,000
• 3 months of mortgage, taxes, insurance, utilities: −$5,000-10,000
• Seller closing costs (title, doc stamps, prorations): −$3,000

Net proceeds: $240,000-$260,000. That “higher” MLS number nets you about the same as a cash offer — but takes 3-6 months and requires living with strangers walking through your house.

How to Evaluate a Cash Offer Fairly

• Compare net-to-net — subtract every expected cost from the MLS number to get true net
• Factor in time — 90 more days of mortgage and taxes is real money
• Weigh certainty — 15-20% of MLS deals fall out before closing due to financing or inspection
• Consider condition — homes needing $30k+ in repairs rarely net what “similar” comps sell for
• Assess urgency — foreclosure, divorce, or relocation may make speed worth more than a few thousand dollars

Use Our Free Tools

Try our Commission Savings Calculator to see what a Realtor would cost you, or take our Should I Sell to a Cash Buyer? quiz to see if it’s right for your situation.