Most sellers I talk with have heard of all three: the local cash buyer, the instant online offer from an iBuyer, and the traditional listing with an agent. What gets lost is that each one was built for a different kind of house and a different kind of seller. Pick the one that fits your house first, and the price comparison gets a lot easier.
I’m Evan Weissman. I buy houses for cash through Real Estate Wanted and I list houses as a licensed Maryland agent (MD License #664574, eXp Realty, LLC), so I see both sides of this every week. Here’s how I’d sort it out.
There is also a fourth path that rarely shows up in these comparisons. At Real Estate Wanted, Brian Fitzpatrick and I (we’re both licensed Maryland agents) offer cash purchases, listings, and Renovate and Sell Together: the house gets fixed up first under written terms, then sells to a retail buyer. It takes longer than cash and no sale price is promised, but it can close part of the gap between an as-is price and a full retail one.
What each path really is
A local cash buyer is an investor or small company that buys the house with its own money, usually as-is, and either renovates it, rents it or resells it. The price reflects the repairs and the buyer’s costs and profit. There’s no commission on the sale.
An iBuyer is a company that makes an offer online, based on an automated valuation of your house and recent sales nearby. If you accept, they inspect the house, deduct repairs they find, and charge a service fee. Their model works on houses they can resell quickly with light updates.
A listing puts the house in front of every buyer on the open market through an agent. Most buyers will use a mortgage. You pay a commission and handle showings, and in exchange you usually get the highest price the market will pay for the house in its current shape.
Side by side
| Local cash buyer | iBuyer | Listing | |
|---|---|---|---|
| Who sets the price | A person who walks the house | An algorithm, then an inspection | The open market |
| Condition they take | Anything, as-is | Mostly newer, move-in ready houses | Anything, but price follows condition |
| Fees | None on the sale | A service fee plus repair deductions | Agent commission, agreed in writing |
| Showings | One walk-through | An inspection visit | Showings and open houses |
| Timing | Your date, often flexible | Fast, within their scheduling | Weeks to months, plus the buyer’s loan |
| Typical result | Below a fixed-up retail price | Close to market, minus fees and repairs | Often the highest gross price |
None of these columns wins every time. The right one depends on the next two sections.
Which houses fit which path
An iBuyer tends to fit a newer house in good condition in a neighborhood with lots of similar recent sales. Think of a 2000s colonial in a subdivision with dozens of comparable sales. Their offers are built from data, and that data works best when your house looks like everyone else’s. iBuyer coverage also changes over time and has been limited to certain metro areas, so check whether your ZIP code is even eligible.
A local cash buyer tends to fit the houses an algorithm can’t price well: a 1950s rancher with original wiring, an inherited house full of belongings, a rental with tenants, a house with a failing septic system, fire damage or a wet basement. A person who walks the house can price those problems directly instead of turning them into a long list of deductions.
A listing tends to fit a house in decent shape when you have time and can handle showings. If the house shows well and similar houses are selling, the open market usually pays the most, even after commission.
Which sellers fit which path
The house is only half of it. Your situation matters as much:
- You need a specific closing date, maybe to line up with a move or an estate deadline. A local cash buyer is usually the most flexible.
- You live out of state and can’t manage repairs or showings. Cash or iBuyer, depending on condition.
- You want the most money and have time. List, and consider fixing the cheap, visible things first.
- The house needs work you can’t pay for, but you’d still like an open-market price. Ask whether a renovate-then-list arrangement is available. Some agents, including me, offer one under a written agreement where you keep ownership until the sale and the cost of the work is repaid at settlement, with no guaranteed price or profit.
Comparing the numbers honestly
Headline prices aren’t comparable. What matters is what you keep. For each offer or estimate, subtract:
- Commission or service fee, if any
- Repairs you’d make, or the buyer would deduct
- Months of mortgage, taxes, insurance and utilities while you wait
- Your share of Maryland transfer and recordation taxes, which vary by county
- The chance the deal falls through and you start over
Here’s a simple illustration, not a promise about any house. Say a dated house might sell for $300,000 listed after $15,000 of updates. A listing at 5% total commission, plus three months of carrying costs at $2,000 a month, leaves about $264,000 before closing costs. An iBuyer offer of $285,000 with a 5% fee and $12,000 in repair deductions leaves about $258,750. A local cash offer of $255,000 with no fee or repairs leaves $255,000. Change the condition of the house and the order can flip. My net sheet guide walks through the math in more detail.
Questions to ask any of the three
- What exactly will I net, in writing?
- What can change the price between signing and settlement?
- Who holds the deposit, and which title company handles settlement?
- Can the contract be assigned to someone else?
- What happens if the inspection finds something?
If you’re weighing an instant offer against a local buyer specifically, my comparison of iBuyers and local cash buyers goes deeper on that pair, and three ways to sell a Maryland house covers the renovate option.
Can I get all three and compare them?
Yes, and it’s a smart move for a house that’s in decent shape. Get an online offer, a local cash offer and a listing estimate, then compare what you’d net from each.
Do iBuyers buy houses that need major repairs?
Usually not. Their model favors houses that need little work. Big repair lists tend to lead to large deductions or no offer at all.
Is a cash offer always lower than a listing?
Not always. On a house that needs a lot of work, a cash offer can come close to what you’d net from a listing once repairs, commission and months of carrying costs come out.
Do I need an agent to compare offers?
No, but it helps to have someone lay the numbers side by side. Ask anyone you talk to for a written net estimate.
Talk through your situation
If you’d like a cash offer and a listing estimate on the same house, call or text me at (410) 498-7473. I’ll show you both numbers and tell you which I’d pick in your shoes.