What a cash offer actually costs you
Every company that offers to buy your house for cash is also the buyer. We are not. Here is the arithmetic they do not show you, and an honest look at when taking the cash really is the better call.
Every company that offers to buy your house for cash is also the buyer. We are not. That is the whole reason this page exists, and it is worth keeping in mind while you read anything else on the subject.
Below is how a cash offer is calculated, what the difference usually works out to on a Utah house, a calculator so you can run your own numbers, and an honest list of the situations where we would tell you to take the cash.
On a typical Utah house, sellers who list net roughly $100,000 more than sellers who take a cash offer.
That gap holds up even after commission, closing costs and two months of carrying the house. Run your own numbers below.How a cash offer is built
There is nothing dishonest about the formula. It is a business, and the discount is the profit. The problem is that sellers almost never see the formula, so they have no way to tell a fair offer from a poor one.
Our broker has been buying, rehabbing and reselling Utah houses since 1993. She knows how these offers are calculated because she has made them.
| Step | What happens |
|---|---|
| 1. Start with the fixed up value | Not what the house is worth today. What it would sell for after a full renovation, based on recent comparable sales nearby. |
| 2. Take 70 to 75 percent of that | This is the margin. It covers the investor’s profit, holding costs, financing, and the risk that the renovation runs over. Published 2026 survey data puts most offers in this band, with some as low as 50 percent and a few as high as 85. |
| 3. Subtract the repair estimate | Their estimate, not yours, and it tends to run high. This is the number most sellers never see broken out separately. |
| 4. That is the offer | No commission and no closing costs, which is true and is the part the advertising leads with. The discount was already taken in step two. |
What the difference looks like
A house worth $500,000 fixed up, needing $25,000 of work. These are illustrative figures and your situation will differ, but the shape of it holds.
| Cash offer | Listed and sold as is | |
|---|---|---|
| Starting point | $362,500 | $475,000 |
| Less repairs | -$25,000 | $0 |
| Less commission | $0 | -$24,000 |
| Less closing costs | $0 | -$5,000 |
| Less 45 days carrying | $0 | -$4,000 |
| You walk away with | about $338,000 | about $442,000 |
| Difference | about $105,000 |
Push the numbers the other way and it still holds. Assume the as is sale only reaches $450,000 and takes 90 days instead of 45, and the seller still nets roughly $70,000 more than the cash offer.
Run your own numbers
Move the two sliders. Every assumption is shown so you can argue with it.
Assumptions you can change
| Starting point | $0 | $0 |
| Less repairs | $0 | $0 |
| Less commission | $0 | $0 |
| Less closing costs | $0 | $0 |
| Less carrying cost | $0 | $0 |
| Less mortgage payoff | $0 | $0 |
| You walk away with | $0 | $0 |
Want this in writing for your actual address?
We will put together a written net sheet on your specific house, at no cost and with no obligation to list with us. If we think a cash offer is genuinely the better call for your situation, we will tell you that too.
When a cash offer is the right call
We would rather tell you this than win a listing you should not have given us. Four situations where we would point you toward a cash buyer, and mean it.
Common questions
Who pays the most cash for houses?
Among cash buyers, offers cluster in the same 70 to 75 percent band, so shopping three of them usually moves the number less than sellers expect. The larger difference is almost always between taking any cash offer and listing the house on the open market. If speed and certainty are not your binding constraints, the market pays more than any cash buyer will.
How much should a Utah seller expect to pay to sell their house?
Budget roughly 6 percent of the sale price in total. Commission is the largest piece and is negotiable. Seller closing costs in Utah generally run around 1 percent and cover things like title, recording and prorated taxes. Add any repairs you agree to after the inspection, plus the mortgage, insurance and utilities you carry until closing.
Is it a good time to sell a house in Utah?
That depends more on your own situation than on the market. If you need to move, the relevant question is what your specific house will sell for now, not what the statewide average did last quarter. Ask for a valuation on your address and decide from a real number.
What is the hardest month to sell a house?
Along the Wasatch Front, activity is slowest through the winter, roughly December into February. Fewer buyers are looking, though the ones who are tend to be serious rather than browsing. It is a slower market, not a closed one.
Will you make me an offer on my house?
No. We are a brokerage, not a buyer. We represent sellers and we get paid when a house sells, which is why we can tell you what a cash offer is worth without having an interest in your answer.
Want the real number on your house?
We will put together a written net sheet showing what a listing would likely net you and what a cash buyer would likely offer. No cost, no obligation, and no pressure to list with us.
More for Utah sellers
Realty HQ LLC, licensed Utah real estate brokerage. Lesley Mascaro, Principal Broker. Figures on this page are rounded estimates for general information. Actual offers, sale prices and costs vary by property, condition and market conditions, and nothing here is a guarantee of any result. This is not legal, tax or financial advice.
A South Jordan brokerage serving buyers and sellers all across Utah, specializing along the Wasatch Front.