Cash or List?
Published on June 26, 2023 | 4 Minute read
Melanie
Ortiz Reyes
Content Specialist
It can be tricky to decide whether to sell your home for cash or list it on the market. It's important to consider your specific circumstances, priorities and goals, and current market conditions, as each option has its drawbacks.
Here are some of the pros and cons of both options to help you determine which approach best aligns with your needs.
Pros of Selling for Cash
Quick and Convenient - Cash buyers are typically able to close on the sale quicker because they have the funds readily available. This is a great option if you want to avoid the complexities of the traditional home sale process.
Potential Savings - Selling for cash may eliminate costs associated with a traditional home sale, like a real estate agent's commission and closing costs.
Assurance of Sale - Cash offers usually provide more certainty of a sale because they're not contingent on financing or other factors that could cause delays or the deal to fall through.
Cons of Selling for Cash
Lower Price - Cash buyers know it's convenient to sell for cash; therefore, they will likely negotiate for a lower price.
Limited Audience - Without the assistance of a real estate agent, you won't have your property marketed on multiple avenues like a traditional seller would. Having fewer eyes on your property could mean receiving fewer offers, which may result in a lower sale price.
Uncertain Market Value - It's typically challenging to determine your property's market value without the help of a real estate agent. You must conduct research to ensure you're receiving a fair price.
Little Room for Negotiation - Cash offers come with fewer negotiation opportunities than a traditional real estate sale. This may limit your ability to negotiate terms such as repairs and closing dates.
Pros of Listing on the Market
Assistance from Real Estate Professionals - Listing your home means you'll be working with an agent who can provide insight and guidance throughout the sale process. Some of their usual duties include marketing, assisting with pricing, negotiating, and navigating and explaining legal aspects.
More Exposure for Your Property - One of the benefits of listing your home with an agent is having your home marketed through multiple listing services, social media, and real estate websites to a bigger audience. This increases the likelihood of receiving multiple offers for your home. In the end, your home will be likely to sell for a higher price.
Negotiations - Listing your home will allow you to negotiate terms like closing dates, contingencies, and repairs with the help of your real estate agent.
Cons of Listing on the Market
Longer Process - If you're looking for a quick sale, a traditional sales process may not be ideal. Depending on both your and your buyer's unique wants and needs, listing the home, scheduling showings, negotiating offers, and closing can take time. Listing your home doesn't guarantee a sale, and it may sit on the market for an extended period.
Costs and Fees - Several factors may eat into your overall profit when listing your home. Some of these expenses include real estate agent commissions, staging expenses, repairs or home inspections, and closing costs.
Buyer Financing - Most buyers rely on financing to buy a home. If they fail to secure the necessary financing, the deal can fall through even after you accept their offer.
Market Unpredictability - The real estate market fluctuates in demand and property values. If the market conditions don't favor sellers, selling your home quickly, receiving multiple offers, or selling at your desired price will be challenging.
If maximizing profit is crucial, listing your home on the market might be the better choice. On the other hand, if you prefer a quick and hassle-free transaction over maximizing the sale price for your home, selling for cash might be more suitable for you. Keep in mind that most sellers list their homes on the market because working with a trusted real estate agent can help you navigate the market and make informed decisions to maximize your chances of a successful sale.