Most homesellers focus on the final sale price number when selling their home. However, the amount you actually walk away with can vary wildly depending on a cash sale or selling with a real estate agent. Agents typically take 5%–6% commission from the sale price of your home. That number can get quite steep and drastically cut into your profits. Accepting cash for your house or using an agent can mean two very different paths as far as payouts, timelines and costs.
House Buyers of America has been buying and selling homes since 2001. Based on our experience, we’ve created this page to help you understand your net proceeds when selling your home either for cash or with an agent. Net proceeds include the amount of money left after selling costs, fees, mortgage balance, and miscellaneous costs. We’ve seen many homesellers surprised by how comparable cash offers can be versus selling with an agent.
You can use the calculator above to understand these amounts and to get a clear picture of your options.
We’ve designed the calculator to help you easily estimate your final dollar amount after selling your home. You can enter different figures, such as sale price and mortgage payoff, that will ultimately affect your take-home amount.
While common amounts will vary according to state laws and other factors, you will at least have a good idea of which path is right for you: selling a home for cash or using a real estate agent. From working with thousands of homeowners, we’ve discovered that even small changes in commissions or closing costs can directly affect net proceeds.
Steps for using the calculator:
Cash offer sales usually result in a lower purchase price; however, there are fewer out-of-pocket expenses, including real estate agent fees. By experimenting with different figures, you can get a clear picture of how you will fare financially, based on the two choices: cash or a real estate agent.
Home sale prices can cause dollar signs to flash before a homeseller’s eyes, but these aren’t the actual proceeds that you walk away with. Net proceeds more accurately reflect your final dollar amount, and these can change depending on your circumstances, payoff, and the state you reside in.
To better understand net proceeds, it helps to step back and look at the full picture of selling a home. Several factors impact the final amount:
Once all of the expenses are totaled, they are subtracted from the home sale amount. The amount of money left is what you will end up with.
It’s important to note that different homesellers will end up with different outcomes, even if their homes are of similar value. This is especially true if one homeseller accepts a cash offer from a cash home-buying company and another chooses the traditional route.
Let’s go into a little more detail on the costs that reduce your final payout:
Mortgage payoff - This is the amount left on your original home purchase loan. It is one of the largest expenses you will encounter and will be deducted from your home sale proceeds.
Real estate agent commissions - This is also one of the biggest expenses in a home sale. A typical agent commission is between 5%–6% of the total home sale price, split between the buyer’s and seller’s agents. If you accepted an offer on your $300,000 home for $298,000, the agent commission (at 6%, the most common rate) would be $17,880. That amount would be deducted from your proceeds.
Closing costs - Closing costs can include title fees, transfer taxes, escrow services, and other expenses. Your title company can give you an estimate of these expenses.
Repair costs - While repair costs don’t actually come out of the proceeds and are out-of-pocket, they should be considered when determining your final sale revenue.
Seller concessions - This is when a seller makes certain financial concessions to close the sale, such as paying for some or all buyer closing costs.
Holding costs - These are costs incurred from the time of offer acceptance to actually closing on the home. They can include mortgage payments, utilities, insurance, and taxes.
People often associate selling a home with a real estate agent as the traditional route, with homes reaching pinnacle offer prices. Agents have access to multiple listing services that can provide good exposure for buyers. Agents also negotiate offers, coordinate showings, and handle complicated paperwork.
While this path can lead to favorable offers and less work for homesellers, it also comes with its own stresses. To prepare your home for showing, your house may require extensive repairs, thorough cleanings, and staging. We often see homesellers spend large amounts of money preparing their home to sell before realizing how much they add up.
But the biggest consideration when using a real estate agent is the commission. With such a high percentage of your sale being deducted from your proceeds, it is a large cost for homesellers. It is important to carefully consider whether a higher sales price, which is not always guaranteed, will offset the agent commissions and other costs. There may also be a longer timeline involved with home preparations, negotiations, and buyer financing.
Listing your home with a real estate agent can have several advantages, but as we’ve seen with our clients, it also has inherent tradeoffs that can ultimately affect your bottom line.
Pros:
Cons:
Selling your home to a cash home buyer veers from the traditional route and centers on reliability, simplicity, and speed. Homes sold directly for cash aren’t listed on the open market, bypassing lengthy days on market. Instead, they are purchased with cash, with no reliance on traditional financing or banks.
Cash sales are attractive for sellers who don’t want to deal with the hassles of prepping their home to sell or don’t have the finances to do so. Many cash home sales are homes purchased in As-Is condition, with no repairs, staging, or cleaning involved.
While most cash offers are below market value, there are ways to offset the shortfall. No agent commissions, quicker closing timeline, and fewer selling expenses can help homesellers walk away happy with their net proceeds.
Understanding the pros and cons of selling your home for cash can help you make a balanced decision.
Pros:
Cons:
Here are the most frequently asked questions we encounter when homesellers are deciding between using a real estate agent or accepting a cash offer.
A net proceeds calculator helps determine what your final proceeds will be after the sale of your home. It considers your remaining mortgage balance, holding costs, and selling costs to determine your final take-home amount.
Our agent vs cash sale calculator is based on our experience of purchasing thousands of homes since 2001. We’ve worked with sellers in ever situation imaginable across the country. While the calculator is only as accurate as the information entered, it’s a great guide to get some quick estimates.
Cash buyers often pay a seller’s closing costs, depending on the written agreement. This is why cash offers are a helpful solution to reduce your out-of-pocket expenses.
Normally, you do not pay any commission if you sell directly to a cash home buyer.
Making more money with a cash home buyer or a real estate agent depends on your unique situation. Each has its pros and cons, so understanding each option will deliver a better outcome for you. In many situations, selling with a real estate agent isn’t a viable option without extensive repairs, making a cash sale much more appealing.
The highest offer isn’t always the best offer. It’s important to remember which option works best for your situation, listing with a real estate agent or selling to a cash buyer like House Buyers of America.
Use our Agent vs Cash calculator to check out your options and help you prioritize your homeselling needs. If you are leaning toward an easier, quicker option, then reach out to us for a no-obligation cash offer. Our experience helps make your home-selling journey easier. We offer a free trash-out and can get an offer to you in only 10 minutes.
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