The Real Math
A cash offer looks lower than a listing price. But after commissions, repairs, carrying costs, and risk - what do you actually net? Here is the full breakdown.
At first glance, the choice between a cash offer and listing your home seems obvious. If your home is worth $350,000 on the market and a cash buyer offers $250,000, you are leaving $100,000 on the table. Right?
Not exactly. That $100,000 gap is an illusion created by comparing two fundamentally different numbers: a gross listing price (before costs) and a net cash offer (after costs). It is like comparing your salary before taxes to someone else's take-home pay. The numbers are not measuring the same thing.
To make a real comparison, you need to calculate what you actually receive in your bank account after all costs, fees, and time investment. That is the net-to-seller number, and it tells a very different story.
When you list your home on the MLS with a real estate agent, the listing price is not what you receive. Here is what comes out of that number before you see a dollar:
Agent commissions (5-6%): The standard in Florida is 5.5-6% split between the listing agent and buyer's agent. On a $350,000 sale, that is $19,250-$21,000. This is the single largest cost of a traditional sale and it is non-negotiable in most cases (despite recent NAR settlement changes, buyer agent compensation remains standard practice).
Closing costs (1.5-3%): Sellers in Florida typically pay for title insurance (required by custom in most counties), documentary stamps ($0.70 per $100 of sale price), recording fees, and sometimes a portion of the buyer's closing costs as a concession. On $350,000, expect $5,250-$10,500.
Pre-sale repairs ($5,000-$30,000+): To get full market value, your home needs to show well. That means fixing deferred maintenance, updating dated finishes, repainting, replacing worn carpet or flooring, fixing roof issues, and addressing any inspection items that will scare off financed buyers. The median pre-sale repair investment in Florida is approximately $12,000-$15,000.
Staging and photography ($1,500-$4,000): Professional staging, photography, and virtual tours are table stakes in competitive Florida markets. Without them, your listing sits while staged homes sell.
Buyer concessions ($3,000-$10,000): In 2026, buyers are requesting closing cost credits, rate buydowns, and repair credits more aggressively than in recent years. The average buyer concession in Florida is currently 2-3% of sale price.
The cost that most sellers forget (or underestimate) is the carrying cost of owning a home during the listing period. Every month your home sits on the market, you pay:
A conservative total: $2,500-$5,000 per month in carrying costs.
In 2026, the average Florida home takes 45-75 days to sell on the MLS, plus 30-45 days to close. That is 2.5-4 months of carrying costs, or $6,250-$20,000 that comes directly out of your net proceeds.
And that assumes everything goes smoothly. If the first deal falls through (which happens in 15-20% of transactions), add another 2-3 months.
Money today is worth more than money 4 months from now. This is not just a financial theory - it has practical implications:
A 3-bedroom, 2-bathroom home in Orlando in good condition. Recent updates. No major repairs needed.
| Cost | Traditional Sale | Cash Offer |
|---|---|---|
| Sale/Offer Price | $300,000 | $228,000 |
| Agent Commissions | -$16,500 (5.5%) | $0 |
| Closing Costs | -$6,000 (2%) | $0 |
| Pre-Sale Repairs | -$5,000 | $0 |
| Staging/Photos | -$2,500 | $0 |
| Buyer Concessions | -$6,000 | $0 |
| Carrying Costs (3 months) | -$9,000 | $0 |
| Net to Seller | $255,000 | $228,000 |
| Time to Cash in Hand | 90-120 days | 7-14 days |
The difference: $27,000 in exchange for 3-4 months of time and effort. For a home in good condition with no time pressure, the traditional sale nets more. But the gap is much smaller than the $72,000 sticker-price difference suggests.
A 3-bedroom, 2-bathroom home in Tampa needing a new roof, kitchen update, and bathroom refresh.
| Cost | Traditional Sale | Cash Offer |
|---|---|---|
| Sale/Offer Price | $250,000 (if repaired) | $175,000 (as-is) |
| Pre-Sale Repairs | -$35,000 (roof, kitchen, bath) | $0 |
| Agent Commissions | -$13,750 (5.5%) | $0 |
| Closing Costs | -$5,000 (2%) | $0 |
| Staging/Photos | -$2,500 | $0 |
| Buyer Concessions | -$5,000 | $0 |
| Carrying Costs (5 months - including repair time) | -$15,000 | $0 |
| Net to Seller | $173,750 | $175,000 |
| Time to Cash in Hand | 150-180 days | 7-14 days |
| Out-of-Pocket Required | $35,000+ for repairs | $0 |
In this scenario, the cash offer actually nets MORE money, closes 5 months sooner, and requires zero out-of-pocket investment. When a property needs significant work, the math almost always favors a cash sale.
The traditional sale numbers above assume a smooth transaction. But 15-20% of financed deals in Florida fall through before closing. Common causes:
When a deal falls through, you go back to square one. Your home goes back on market with accumulated days-on-market, which signals to buyers that "something is wrong." You typically sell for 3-5% less after a failed contract, and you have added 2-3 months of carrying costs.
Cash sales close at 95%+ rates because there is no financing contingency, no appraisal requirement, and no lender to derail the deal.
Based on hundreds of transactions, here are the situations where a cash offer consistently delivers better net value than a traditional listing:
Yes, the offer price is lower. But the net-to-seller (what you actually receive) can be comparable or even higher when you factor in commissions, repairs, carrying costs, and concessions that come out of a traditional sale.
Absolutely. Getting a cash offer is free with no obligation. Use it as a baseline to compare against listing offers. If the MLS produces a significantly better net result, take it.
Take the expected sale price, subtract agent commissions (5-6%), closing costs (1.5-3%), pre-sale repairs, staging, carrying costs for the listing period, and likely buyer concessions (2-3%). The remaining number is your true net.
Typically 65-80% of after-repair market value, depending on the property's condition and location. Homes in good condition receive higher offers (75-80%). Homes needing major work receive lower offers (65-70%).