We Buy Houses for Cash in Sacramento vs. top Sacramento agent
Another helpful exercise is to compare how a We Buy Houses for Cash company might stack up against working with a real estate agent. Let’s take a look at how different aspects of the sale might look, and compare possible proceeds.
| Aspect of the sale | Sell to a We Buy Houses for Cash company in Sacramento | Sell with a top Realtor® in Sacramento |
| Selling timeline | 7 to 30 days | 71 days average; 28 to attract an offer, 43 to close the loan |
| Home preparations | None | Deep clean, declutter, make necessary repairs, landscape, stage home |
| Showings | None | 10 to 25 showings average |
| Inspections / repairs | None | May need to make additional repairs for the buyer or renegotiate the price |
| Appraisal | None | May need to lower your asking price if the appraisal comes in low |
| Title search | Cash-for-homes companies often handle title issues | Must clear title before you can sell home |
| Financing contingency | None | Mortgaged buyers use a financing contingency that could hold up the deal if the buyer’s loan doesn’t clear |
| Agent commission | None | 3%-5.8% average |
| Closing costs | None | 1% to 3% of the home sale price on top of agent commission |
Example net proceeds
Below, we’ve compiled one example of how net proceeds may differ between selling a home to a We Buy Houses for Cash company and an agent-assisted sale.
Let’s say your mid-century modern home in Sacramento is currently worth about $584,000 and needs about $40,000 in repairs. Once the repairs are completed, the home might be worth about $624,000.
| Sell to a We Buy Houses for Cash company in Sacramento | Sell with a top Realtor® in Sacramento | |
| Estimated sale price | ($624,000 x .70) – $40,000 = $396,800 | $584,000 |
| Market preparations | 0 | $5,840 (1% of sale price) |
| Agent commissions | 0 | $17,520 (3% of sale price) |
| Closing costs | 0 | $8,760 (1.5%) |
| Estimated take-home for seller | $396,800 | $551,880 |
The example above shows a 3% agent commission following the new commission rules that decoupled seller and buyer agent compensation effective August 2024. This means the buyer is now responsible for paying their own Realtor fees. However, many sellers are still offering to pay the buyer’s agent commission as an additional marketing tool. Even if you decide to shoulder this cost, which would be around 2.5% to 3%, the estimated take-home would still be higher than that of selling to a cash-buying company. This illustrates that, financially, it’s usually in your best interest to partner with an experienced real estate agent.
However, net proceeds are not the only consideration when selling a home. What’s best in your situation will depend on the condition of your property, what level of repairs are needed, and your selling objectives. It could be that selling on the open market will be challenging in your area, or the agent timeline might not fit your immediate needs.
House-buying companies can be a good alternative for Sacramento sellers in need of a quick home sale, but it’s important to consider both the benefits and drawbacks. When it comes to selling your home, it’s wise to avoid making any hasty decisions.
Before making a commitment to a cash-for-homes company, gather multiple offers and take the time to consider your options. Consider consulting with a top agent for expert insights on how soon, and for how much, your property might sell on the market. Whatever you decide, HomeLight would be happy to help with your real estate needs!
Editor’s note: This post is for educational purposes only, not legal or financial advice. Links and mentions of Sacramento area “We Buy Houses” companies should not be considered endorsements.
Header Image Source: (Stephen Leonardi / Pexels)
