When you need to sell your home, you have options. The traditional path—listing with a real estate agent—works well for many sellers. But cash offers have become increasingly common, with nearly 33% of homes sold in the first half of 2025 purchased entirely with cash. Understanding the real differences helps you make the right choice for your situation.
Timeline: The Biggest Difference
The most significant gap between cash and traditional sales is speed.
Traditional Sale Timeline
According to industry data, a traditional mortgage-financed sale takes approximately:
- 34 days to receive an offer after listing
- 44 days for the buyer to close on their mortgage
- Total: 75+ days from listing to closing
And that's assuming everything goes smoothly. Deals can fall through due to financing issues, low appraisals, or inspection negotiations—sending you back to square one.
Cash Sale Timeline
Cash sales can close in 7 to 14 days, sometimes faster. Without mortgage underwriting, appraisal requirements, or lender approval, the process moves at the speed of title work and document preparation.
For sellers facing deadlines—whether a job relocation, divorce settlement, foreclosure timeline, or estate settlement—this difference can be critical.
Closing Costs: Breaking Down the Numbers
Both sale methods involve closing costs, but they differ significantly.
Traditional Sale Costs (Seller)
When selling with an agent on the traditional market:
| Cost | Typical Range | |------|---------------| | Agent commissions | 5-6% of sale price | | Title insurance | 0.5-1% | | Escrow fees | $500-2,000 | | Transfer taxes | Varies by county | | Repairs/concessions | Negotiated | | Staging/prep | $500-5,000+ |
For a $700,000 home, you might pay $35,000-$42,000 in agent commissions alone.
Cash Sale Costs (Seller)
Cash buyers often cover most closing costs. When selling to a professional buyer like MeritHomeBuyers:
- No agent commissions (we're the buyer)
- Title and escrow typically paid by buyer
- No repair costs (sold as-is)
- No staging or prep needed
The offer you receive is generally the amount you walk away with, minus any existing mortgage payoff.
The "Net" Question
Many sellers focus on sale price without considering net proceeds—what you actually receive after all costs.
Example Comparison
Let's say your home could sell for $700,000 on the traditional market or $630,000 to a cash buyer:
Traditional Sale:
- Sale price: $700,000
- Agent commission (6%): -$42,000
- Closing costs: -$5,000
- Negotiated repairs: -$15,000
- Staging/cleaning: -$3,000
- Net proceeds: $635,000
Cash Sale:
- Sale price: $630,000
- Agent commission: $0
- Closing costs: $0 (buyer pays)
- Repairs: $0 (sold as-is)
- Net proceeds: $630,000
In this example, the difference is only $5,000—while the cash sale closes 60+ days faster with far less stress.
Your specific numbers will vary based on your home's condition, local market, and buyer terms. The key is to compare net proceeds, not just headlines.
Certainty vs. Uncertainty
Traditional sales involve multiple contingencies:
Financing contingency: The buyer's mortgage approval isn't guaranteed. If they lose their job, find another property, or get denied, your deal falls through.
Appraisal contingency: If the bank's appraisal comes in lower than the sale price, the buyer may demand a price reduction or walk away.
Inspection contingency: Buyers can negotiate repairs or credits after inspection, or use findings as a reason to exit.
Cash sales eliminate these contingencies. A legitimate cash buyer provides proof of funds upfront and doesn't need bank approval. Once you accept an offer, the sale is essentially guaranteed.
When Traditional Sales Make Sense
The traditional market often delivers higher gross sale prices in these situations:
- Homes in excellent condition that will photograph well and pass inspection
- Sellers with 3-4+ months to spare
- Hot markets with strong buyer demand
- No deadline pressure from life circumstances
- Willingness to negotiate on repairs and price
If you have time and a move-in-ready home, listing traditionally might net you more—though not always as much more as you'd expect after costs.
When Cash Sales Make Sense
A cash sale typically makes more sense when:
- Speed is essential: Job relocation, estate settlement, divorce, or avoiding foreclosure
- The home needs work: Deferred maintenance, outdated systems, or repairs you can't afford
- You want simplicity: No showings, negotiations, or deal uncertainty
- Privacy matters: No public listing, open houses, or signs in your yard
- Tenant situations: Properties with difficult tenants are easier to sell as-is
Red Flags to Watch For
Not all cash buyers are equal. Watch for:
- No proof of funds: Legitimate buyers show you they have the cash
- Contract assignments: Some "buyers" just want to assign your contract to someone else
- Excessive earnest money requests: You shouldn't need to pay anything to sell
- Pressure tactics: A good buyer gives you time to decide
- No local presence: Know who you're dealing with
A reputable cash buyer will provide a straightforward offer, answer your questions, and let you make an informed decision.
The Bottom Line
There's no universally "right" choice between cash and traditional sales. The best option depends on your timeline, your home's condition, your tolerance for uncertainty, and your financial priorities.
If you're curious about what a cash offer might look like for your property, it costs nothing to find out. Many sellers request a cash offer simply to have a baseline for comparison—and then decide which path forward makes the most sense.