Cash Offer vs. Traditional Listing: Which is Right for You?
The Real Numbers Behind Each Option
When most people think about selling their home, they picture a "For Sale" sign in the yard and an agent hosting open houses. But cash offers have become an increasingly popular alternative — especially in Southern California's competitive market.
Let's break down the real numbers.
Traditional Listing: The Full Cost
For a $500,000 home sold through a traditional listing:
| Cost | Amount |
|---|---|
| Agent Commission (5.5%) | $27,500 |
| Closing Costs (2%) | $10,000 |
| Repairs & Staging | $15,000 |
| Holding Costs (4 months) | $10,000 |
| **Total Costs** | **$62,500** |
| **You Keep** | **$437,500** |
Timeline: 3-6 months with no guarantee of closing.
Cash Offer from Fellow Homes
For the same $500,000 home:
| Cost | Amount |
|---|---|
| Agent Commission | $0 |
| Closing Costs | $0 |
| Repairs | $0 |
| Holding Costs | $0 |
| **Cash Offer (85%)** | **$425,000** |
| **You Keep** | **$425,000** |
Timeline: 14 days, guaranteed.
The Surprise: The Gap Is Smaller Than You Think
In this example, the difference is just $12,500 — but with a traditional sale, you're spending 4+ months of stress, dozens of showings, and risking the deal falling through. 15% of traditional sales fall through before closing.
When Cash Offers Win
- You need to sell in under 30 days
- Your home needs significant repairs
- You want certainty (no financing contingencies)
- You're going through foreclosure, divorce, or probate
- You don't want to deal with showings and strangers in your home
When Traditional Listings Win
- Your home is in excellent condition
- You have 6+ months and no time pressure
- You're in a hot seller's market with multiple offers
- You can afford to invest in staging and repairs
Get Both Options — For Free
Call Fellow Homes at 310-845-6551 for a no-obligation cash offer. Compare it to what an agent quotes, and make the decision that's right for you. No pressure, no sales tactics.
Ready to Sell Your Home?
Get your free, no-obligation cash offer from Fellow Homes.