We Buy Houses for Cash in Ontario vs. top Ontario 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 glance 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 Ontario | Sell with a top Realtor in Ontario |
| Selling timeline | 7 to 30 days | 72 days average; 29 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 the 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 home in Ontario is worth about $650,000 and needs about $25,000 in repairs. Once the repairs are completed, the home might be worth around $675,000.
| Sell to a We Buy Houses for Cash company in Ontario | Sell with a top Realtor in Ontario | |
| Estimated sale price | ($675,000 x .70) – $25,000 = $447,500 | $650,000 |
| Market preparations | 0 | $6,500 (1% of sale price) |
| Agent commissions | 0 | $19,500 (3% of sale price) |
| Closing costs | 0 | $9,750 (1.5%) |
| Estimated take-home for seller | $447,500 | $614,250 |
As this example illustrates, 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 a challenge in your area, or the agent timeline might not fit your immediate needs.
Key takeaways
- Quick sale: House-buying companies offer fast, hassle-free transactions, often closing within days or weeks.
- As-is condition: You can sell your home without making repairs or preparing it for the market.
- Lower offers: Cash-for-homes companies usually offer less than market value for your property.
- No contingencies: These buyers typically don’t require contingencies, reducing the risk of delays or deals falling through.
- Limited negotiation: Most offers are take-it-or-leave-it, leaving little room for negotiation on price.
- Know your home’s worth: Always be aware of your property’s estimated market value before you proceed with a cash-offer company.
At HomeLight, we’re happy to lend a guiding hand in navigating your real estate journey. Let us help you make an informed and confident decision, whether you’re looking for a no-obligation cash offer through a trusted platform like Simple Sale or seeking to consult with a top Ontario agent.
Header Image Source: (irianna88w / Deposit Photos)
