“You should list with a realtor. You’ll get way more money.”
That’s what everyone tells you when you mention selling your house. Your neighbor, your coworker, that one friend who watches HGTV. They all say the same thing: traditional sale gets you the most money.
But is that actually true? Or are there hidden costs and complications that change the math completely?
I’m Brandon, and my partner David and I run Yellowhammer Home Buyers here in Alabama. We make cash offers on houses every day, and we also know exactly what traditional sales cost because we’ve done hundreds of them. Let me show you the real numbers so you can make the best decision for your situation.
The Traditional Sale Process (What Actually Happens)
Let’s start with what a traditional sale really involves, because most people only see the highlights on Zillow.
Step 1: Get Your House Ready (2-4 weeks, $5,000-$20,000+)
Before you list, you need to make your house showroom-ready. That means:
Repairs buyers will demand:
- Fix anything broken (HVAC, plumbing, roof leaks, foundation cracks)
- Update anything really outdated (1970s kitchen, pink bathroom tile)
- Paint walls neutral colors
- Replace worn carpet
- Fix curb appeal issues
Deep cleaning and staging:
- Professional deep clean ($300-$500)
- Declutter and depersonalize
- Rent storage unit for extra furniture ($100-$150/month)
- Maybe hire a stager ($500-$2,000)
Cost reality: Most sellers spend $10,000-$15,000 getting their house ready. Some spend way more.
Step 2: List with a Realtor (Months 1-2)
You interview realtors, sign a listing agreement (usually 6 months), and your house hits the MLS.
Now comes the fun part:
- Professional photos (included in commission)
- Showings – you leave your house on short notice multiple times per week
- Keep house spotless at all times (exhausting with kids or pets)
- Open houses – strangers walking through your home
- Negotiating with buyers through your agent
Step 3: Accept an Offer (Month 2-3)
You get an offer! But it’s always lower than asking. Buyers negotiate. You counter. They counter again. Finally you agree.
But that offer isn’t final. It’s contingent on:
- Home inspection (they’ll find stuff and negotiate more)
- Appraisal (if it comes in low, deal might fall through)
- Buyer’s financing approval (if denied, deal falls through)
- Buyer selling their house first (adds months of uncertainty)
Fall-through rate: 15-20% of traditional sales fall through after going under contract.
Step 4: Repairs After Inspection (Weeks 4-6)
The inspection report comes back. Buyer wants:
- $3,000 in repairs
- or $5,000 off the price
- or they walk
You negotiate again. You either fix things or reduce price. More time, more money.
Step 5: Closing (Month 3-4)
If everything goes perfectly – appraisal passes, financing approved, buyer doesn’t get cold feet – you close 30-45 days after accepting the offer.
Total timeline from listing to closing: 3-6 months typically
The Real Costs of Traditional Sale
Here’s where the math gets interesting. Let’s use a real example:
Your house in Huntsville is worth: $250,000 (perfect condition)
Traditional Sale Costs:
Realtor commission (6%): -$15,000
Most people forget this is negotiable, but 6% is standard. That’s $15,000 you don’t see.
Pre-listing repairs: -$8,000
Paint, carpet, minor fixes, cleaning, etc.
Closing costs (seller portion): -$3,500
Title insurance, transfer taxes, attorney fees, etc.
Holding costs during 4-month sale: -$4,000
- Mortgage: $1,200/month × 4 = $4,800
- Utilities: $200/month × 4 = $800
- Property tax: $200/month × 4 = $800
- Insurance: $100/month × 4 = $400
- Maintenance: $200/month × 4 = $800
- Total holding costs: $7,600
Negotiated repairs after inspection: -$3,000
Total costs: $36,100
Your net proceeds: $213,900
Timeline: 3-6 months of showings, uncertainty, and stress
The Cash Offer Process (What Actually Happens)
Now let’s look at how selling for cash actually works.
Day 1: You Contact Us
Call (256) 795-3014 or fill out our form. Tell us about your house, what condition it’s in, why you’re selling.
Day 1-2: We Visit Your Property
One of us comes to see your house. Takes 15-20 minutes. We look at:
- Overall condition
- What repairs are needed
- Neighborhood and market conditions
We’re not judging you. We’re not comparing your house to HGTV. We’re just assessing what it’ll take to get it retail-ready.
Day 2-3: Written Cash Offer
We send you a written offer showing our math:
After-repair value: $250,000 (what it’s worth fixed up)
minus Needed repairs: $15,000
minus Our holding costs: $8,000
minus Our selling costs when we resell: $20,000
minus Our profit: $25,000
equals Your offer: $182,000
You can see exactly where the numbers come from. If you disagree with our repair estimate, we can discuss it.
Week 2-3: Close on Your Timeline
If you accept, we close whenever works for you:
- Need 7 days? Done.
- Need 30 days to find a place? No problem.
- Need 60 days? We can do that too.
We close at a local title company. You sign papers, get a check, hand over keys. Done.
Total timeline: 2-3 weeks typically (faster if you need it)
The Real Costs of Cash Sale
Using the same Huntsville house:
Your house is worth: $250,000 (perfect condition)
Cash Sale Costs:
Repairs: $0 (we buy as-is)
Commission: $0 (we’re buyers, not agents)
Closing costs: $0 (we pay them)
Holding costs: $900 (only 2 weeks, not 4 months)
Inspection negotiations: $0 (no inspection contingencies)
Your cash offer: $182,000
Timeline: 2 weeks and you’re done
The Side-by-Side Comparison
Let me put it in a simple chart so you can see the real difference:
TRADITIONAL SALE:
- Sale price: $250,000
- Costs: -$36,100
- Net: $213,900
- Timeline: 3-6 months
- Effort: High (repairs, showings, negotiations)
- Certainty: Medium (deals fall through 15-20% of time)
CASH SALE:
- Offer price: $182,000
- Costs: $0
- Net: $182,000
- Timeline: 2-3 weeks
- Effort: Minimal (one showing, one closing)
- Certainty: 100% (we never back out)
The difference: $31,900 more with traditional sale
What you’re paying for that extra $31,900:
- 3-5 more months of mortgage payments and stress
- Dozens of showings
- Keeping house spotless for months
- Risk of deal falling through
- Paying for repairs upfront
- Managing contractors
- Uncertainty every day
When Traditional Sale Makes Sense
I’m not going to lie to you – traditional sale isn’t always wrong. Here’s when it makes sense:
Your House Is in Great Condition
If your house is updated, well-maintained, and move-in ready, traditional sale might be worth it. You won’t have huge repair costs, and you can get close to full market value.
You Have Time
If you’re not in a hurry and don’t mind months of showings and uncertainty, traditional sale can work. You need patience and flexibility.
You’re in a Hot Market
If houses in your Alabama neighborhood are selling in days with multiple offers, traditional sale might get you premium pricing. But Alabama’s real estate market varies by city and neighborhood.
You Can Afford to Wait and Pay
If you have savings to cover repairs, holding costs, and you can afford to wait months, traditional sale might net you more.
When Cash Offer Makes More Sense
Here’s when selling for cash is actually the smarter financial move:
Your House Needs Repairs
If you need $10,000+ in repairs, traditional buyers will either:
- Demand you fix it before closing
- Negotiate price down by repair amount (or more)
- Walk away completely
Cash buyers factor repairs into the offer and handle them after closing. You pay nothing.
You Need to Sell Fast
Facing foreclosure? Job relocation? Divorce? Behind on payments? Need money quickly?
Traditional sale takes 3-6 months minimum. Cash sale takes 2 weeks.
You Don’t Have Money for Repairs
If you can’t afford $10,000-$20,000 in pre-listing repairs, traditional sale isn’t really an option. You’d need to borrow money or not sell at all.
You’re Tired of Being a Landlord
If you have tenants in the property, traditional buyers don’t want the hassle. Cash buyers will buy with tenants in place.
You Inherited a Property You Don’t Want
Why spend months and money fixing up a house you never wanted? Sell as-is and move on.
The House Has Unusual Issues
Foundation problems, flood damage, fire damage, hoarding situation, dated 1970s everything – traditional buyers with financing won’t touch these. Cash buyers will.
The Hidden Value of Certainty
Here’s something people forget to calculate: peace of mind has value.
With traditional sale:
- Will buyers even make an offer?
- Will the appraisal come in?
- Will their financing get approved?
- Will they back out last minute?
- How long will this take?
You live with uncertainty for months.
With cash sale:
- You know exactly what you’re getting
- You know exactly when you’re closing
- No contingencies that can fall through
- No uncertainty
Some people value that certainty at $20,000+. They’d rather have $180,000 in two weeks than risk waiting 6 months for $210,000 that might not happen.
FAQ: Cash vs. Traditional Sale
Q: Why don’t cash buyers pay full market value?
A: Because we’re buying in as-is condition, paying all costs, handling all repairs, and taking all risk. We need room to cover costs and make profit when we eventually resell.
Q: Can I get multiple cash offers?
A: Yes, definitely get at least 2-3 cash offers to compare. Not all cash buyers offer the same amount.
Q: What if I get both a cash offer and traditional offer?
A: Compare the NET proceeds (after all costs) and the timelines. Sometimes traditional is better, sometimes cash is better.
Q: Do all cash buyers close fast?
A: Most do, but ask upfront. We typically close in 7-14 days, but some cash buyers take 30+ days.
Q: Can I negotiate a cash offer?
A: Sometimes. If you disagree with our repair estimates, we can discuss them. But cash offers have less negotiating room than traditional offers.
Q: Is a cash offer the same as an investor offer?
A: Usually yes. Investors buy with cash to avoid financing hassles and because they’re buying to fix and resell or rent.
The Bottom Line
Traditional sale gets you more money – IF everything goes perfectly. IF you can afford repairs upfront. IF you have 3-6 months to wait. IF the deal doesn’t fall through. That’s a lot of IFs.
Cash sale gets you less money – but it’s guaranteed, fast, and costs you nothing. For many people, that’s worth $30,000.
The right choice depends on your situation, your timeline, and your priorities.
Want to know what your house could get as a cash offer? Contact us or call (256) 795-3014. We’ll give you a no-obligation offer and show you exactly how we arrived at the number. Then you can decide what makes sense for your situation.