Cash offer vs. listing with an agent
Most companies that buy houses will tell you a cash sale always wins. It doesn't. Here is the same house sold two ways, with every cost written out, so you can see where the money goes.
The example: a house that would sell for about $400,000 once it's fixed up, but needs about $40,000 of work first.
A house that needs less work gets an offer closer to its market value.
List it with an agent
| Sale price after repairs | $400,000 |
|---|---|
| Repairs before listing | -$40,000 |
| Agent commission (5%) | -$20,000 |
| Title, escrow and other closing costs (about 1.5%) | -$6,000 |
| Excise tax (about 1.6%) | -$6,400 |
| Holding costs, 4 months at $1,800 | -$7,200 |
| You walk away with | $320,400 |
About 5 to 6 months from start to closing, and you pay for the repairs up front.
Sell it to us for cash
| Cash offer, as it sits | $300,000 |
|---|---|
| Repairs | $0 |
| Commission | $0 |
| Title, escrow and other closing costs (about 1.5%) | -$4,500 |
| Excise tax (about 1.6%) | -$4,800 |
| Holding costs | $0 |
| You walk away with | $290,700 |
A few weeks, on the date you choose. Nothing paid up front.
Where these numbers come from
Washington charges a real estate excise tax on every sale, normally paid by the seller. The state rate is 1.1% on the part of the price up to $525,000, and higher above that. Cities and counties add their own rate, usually up to 0.5% more. The state adjusts these brackets every few years, so your title company will give you the exact figure.
Commissions are negotiable and vary; 5% total is used here as an example. Closing costs, holding costs and repair costs depend on your house. Every number on this page is an example, not an offer.
Three ways to sell a house in Washington
Each one is right for somebody. This is how they compare, without the sales pitch.
| List with an agent | Sell it yourself | Sell to a cash buyer like us | |
|---|---|---|---|
| Price | Usually the highest, for a house in good condition | Can match an agent if you price and market it well | Usually lower. We have to cover repairs, holding costs and our own risk |
| Time to money | Typically a few months: prep, listing, a buyer's loan, closing | Varies widely. Depends on your marketing and the buyer's loan | A few weeks, or a later date if you want one |
| Repairs and cleaning | Usually expected before listing, plus whatever the inspection turns up | The same | None |
| Showings | Yes, often many | Yes, and you run them | One walk-through |
| Commissions and fees | Agent commission, plus normal closing costs | No listing commission. You may still pay a buyer's agent | No commission. The offer spells out who pays which closing costs |
| Chance it falls through | Real. Loans get denied and inspections kill deals | The same, without an agent to manage it | Lower. No buyer's loan. Any inspection period is written into the offer |
| Best when | The house is in good shape and you have time | You have time, a market-ready house, and want to do the work | The house needs work, or you need a sure date |
Sell to a cash buyer like us
- Price
- Usually lower. We have to cover repairs, holding costs and our own risk
- Time to money
- A few weeks, or a later date if you want one
- Repairs and cleaning
- None
- Showings
- One walk-through
- Commissions and fees
- No commission. The offer spells out who pays which closing costs
- Chance it falls through
- Lower. No buyer's loan. Any inspection period is written into the offer
- Best when
- The house needs work, or you need a sure date
List with an agent
- Price
- Usually the highest, for a house in good condition
- Time to money
- Typically a few months: prep, listing, a buyer's loan, closing
- Repairs and cleaning
- Usually expected before listing, plus whatever the inspection turns up
- Showings
- Yes, often many
- Commissions and fees
- Agent commission, plus normal closing costs
- Chance it falls through
- Real. Loans get denied and inspections kill deals
- Best when
- The house is in good shape and you have time
Sell it yourself
- Price
- Can match an agent if you price and market it well
- Time to money
- Varies widely. Depends on your marketing and the buyer's loan
- Repairs and cleaning
- The same
- Showings
- Yes, and you run them
- Commissions and fees
- No listing commission. You may still pay a buyer's agent
- Chance it falls through
- The same, without an agent to manage it
- Best when
- You have time, a market-ready house, and want to do the work
Tenacity vs. what to watch for
Plenty of companies advertise "we buy houses." Here is what to look out for with any of them, and how we handle each part.
- A fee to get an offer, or to 'process' the sale
- Pressure to sign today
- Your contract sold to a buyer nobody told you about
- A clause that lets them lower the price after you've signed
- A closing that doesn't go through a title company
Ask anyone you talk to, us included, to put the number and the terms in writing.
- A written cash offer
- No commissions, and no fees from us
- Take your time and show the offer to anyone you like
- Closing at a local title company
- One walk-through, no showings
- Sell as-is: no repairs, no cleaning
- You pick the closing date
No obligation. It costs nothing to see your number.
There's no secret formula, and you're entitled to see ours. We start with what the house would sell for once it's fixed up, based on what similar houses nearby have actually sold for.
From that we subtract what the repairs will cost, what it costs to own the house while the work is done (taxes, insurance, utilities, interest), and what it costs to sell it again (commissions, closing costs, excise tax). What's left has to cover our risk and our pay. The remainder is the offer.
That means our offer is below what the house would bring fixed up and listed. It has to be. Whether it's a good deal for you depends on what those repairs, months and uncertainties would cost you if you did it yourself, and we're glad to talk that through with you.
When we give you a number, we're happy to walk you through how we got there: what we think the house sells for fixed up, what the work will cost, and our costs. If you think we've got one wrong, tell us.
Find out what we'd pay for your Washington house
We buy houses as they sit. No commissions, no fees from us, and you choose the closing date. It costs nothing and commits you to nothing.
- No obligation
- We don't sell your information
- A real person replies, usually the same day