Selling Your House for Cash vs. Listing on the MLS
Deciding between a cash sale and listing on the MLS? Each option has unique benefits—learn which approach best fits your selling goals.
When it comes time to sell your home, one of the most critical decisions you’ll face is whether to sell for cash or list on the Multiple Listing Service (MLS). Each method has its unique benefits and drawbacks, and understanding these can help you make the best choice for your situation.
Selling Your House for Cash
Pros:
Speed of Sale: One of the most significant advantages of selling your house for cash is the speed of the transaction. Cash buyers, often investors or companies specializing in quick sales, can close deals in a matter of days or weeks, rather than the months it can take when selling through traditional means.
Certainty and Convenience: Cash sales are generally more straightforward and less prone to falling through. There’s no need to worry about buyer financing falling through at the last minute, which can be a common issue with traditional sales. This can provide peace of mind and reduce the stress associated with the selling process.
No Repairs Needed: Cash buyers typically purchase properties “as-is,” meaning you won’t need to invest time or money into repairs or upgrades. This can be particularly beneficial if your home requires significant work.
Lower Costs: Without the need for real estate agent commissions, staging costs, and other related expenses, selling for cash may allow you to put more money in your pocket.
No Appraisals or Inspections: Lenders typically require appraisals and other inspections, such as wood infestation (termite) or mold, before they loan money on a property. These cost money and time to complete, and may potentially kill a deal if the appraisal comes in lower than the asking price.
Cons:
Lower Sale Price: Cash buyers often look for deals, which means they might offer less than market value for your home. If maximizing your sale price is a priority, this might not be the best option.
Scams and Low-Ball Offers: The cash buyer market can sometimes be fraught with scammers and unreasonably low offers. It’s essential to vet potential buyers thoroughly and consider getting a professional opinion on your home’s value. Make sure you are working with a reputable company like Property Prodigy that has a proven track record of honesty and integrity.
Listing on the MLS
Pros:
Higher Sale Price: Listing your home on the MLS can expose it to a larger pool of potential buyers, often resulting in a higher sale price. Traditional buyers typically offer market value or above, especially in competitive markets.
Professional Guidance: Working with a real estate agent provides you with a licensed agent to guide you throughout the process. Agents can help with pricing, marketing, negotiations, and navigating the complexities of the sale.
Competitive Bidding: In a hot market, listing on the MLS can lead to multiple offers, potentially driving up the sale price.
Cons:
Time-Consuming: The process of selling through the MLS can be lengthy. From preparing your home for sale, conducting showings, to waiting for buyer financing, it can take several months to complete the transaction.
Costs: Listing on the MLS involves various costs, including agent commissions (typically around 5-6% of the sale price), staging, and potentially making repairs or improvements to make the home more attractive to buyers.
Inconvenience: Keeping your home in show-ready condition and accommodating showings can be inconvenient and disruptive, especially if you’re living in the home during the selling process.
Closing Issues: Buyers are often not able to secure financing. Just having a pre-approval letter does not mean your potential buyer will be able to secure the required loan by closing, in which case, the deal falls through and the you house will switch from Pending to Active again on MLS. Many buyers will become weary if this happens to a house and be afraid that something is wrong with it. And the longer a house sits on the market, the less likely it is to sell at your asking price as more and more people begin assuming the house is not in as good a condition as advertised.
Conclusion
Choosing between selling your house for cash and listing on the MLS depends on your priorities and circumstances. If speed, convenience, and avoiding repairs are your primary concerns, a cash sale might be the best route. However, if maximizing your sale price is more important, then listing on the MLS is likely the better option.
Ultimately, consider consulting with a real estate professional, like those at Property Prodigy to help weigh your options and determine the best strategy for your unique situation. Whether you choose a quick cash sale or the traditional MLS route, being informed will help you achieve the best possible outcome.
