I Keep Getting Cash Offers on My Los Angeles House. What Should I Do?

I keep getting cash offers on my Los Angeles house, so what should I do? Have a conversation with a real estate advisor before you respond to any of them. That conversation costs you nothing, and it shows you the difference between selling with representation and selling without it, including what going without could cost you.

I’m Nicole Strober, a Los Angeles real estate advisor with Compass. A postcard, a phone call, or a letter promising to buy your house for cash is flattering, and it can lead to a real sale. It is also a reason to call me before you answer it.

A cash offer comes from a buyer who is not using a mortgage, which removes the loan approval, the appraisal, and the contingencies that travel with them. With fewer ways for the transaction to fall apart, a cash offer can close faster and with greater certainty, and those are real advantages.

Cash buyers are aware of this, and many assume it entitles them to a lower price. That assumption deserves some scrutiny. The property and the buyer decide the outcome, and a well-presented home on the open market can draw competing offers. A cash buyer is also not always an investor. Sometimes it is an ordinary homebuyer who happens to have the funds, and that buyer may compete on the open market like anyone else.

A financed offer requires a loan, an appraisal, and more time, but it also comes from a much wider pool of buyers, which is often how a seller reaches the strongest price.

No, and this is the point I most want you to take from this post. Your home is probably your largest asset, and whoever is buying it, you want a fiduciary looking out for you.

Selling without an agent, known as for sale by owner, may save you a listing commission, but it places the entire transaction on you. You would be responsible for making every required disclosure and making it correctly, for meeting the retrofit and compliance requirements for a Los Angeles sale (which vary by city within Los Angeles), for reading and negotiating the contract, for handling all communication with the buyer and the buyer’s agent, for understanding the findings in the buyer’s inspection, and for being present at the appraisal.

California places a great deal of responsibility on sellers, and a missed disclosure can come back to you after the sale closes. Unless you work in real estate or are an attorney, I would not take that on yourself. That is my opinion, and it is not legal advice.

If a cash buyer arrives without their own representation, that is their choice, and it does not change what you should have. I feel very strongly that anybody selling their home should have a Realtor representing them and their best interests.

To give you specific advice on an offer, such as what it is worth, whether to counter, or how to respond, a real estate agent needs to be working for you under a listing agreement of some form. That is what makes me your fiduciary for that sale.

No. Being represented does not mean the whole world sees your home, and you have more than one way to market it.

The approach I usually recommend, unless there is a specific reason not to, is a public listing on the MLS. The more people who see the house, the better the chance of reaching the strongest price, and you never know who is going to come along. A cash buyer can still make an offer on a public listing, and you will have other offers beside it to compare.

There are private ways to market a home as well. If you want to learn how Compass Private Exclusive works, or the details about my MLS’s exclusive status, schedule a call with me.

Once you are working with an advisor under a listing agreement, bring the offers to them, and together we look at a handful of questions.

1. What comparable sales support the buyer’s offer price?
2. Are there fees, and who pays escrow and title costs?
3. Did the buyer provide recent proof of funds?
4. If the buyer’s inspection finds something, can they renegotiate the price?
5. What could the same house get on the open market, after preparation, closing costs, and time on the market?

The last question matters most. Once we are working together under a listing agreement, I can place the cash offer and the likely market result side by side on one page, so you can see the difference before you decide.

It depends on how much of a fixer it is. Like I always say, every property is different, so every listing plan I build with a seller is different, but we always return to the three P’s: preparation, presentation, and price. If the house needs work and you expect a developer or investor to buy it, you do not need to renovate. When possible, though, you do want it cleaned up, cleared out, and photographed well, because good photos and a clear price bring more buyers, and sometimes a buyer you did not expect.

I recently sold a fixer condo in original condition. Before we did anything, the home was emptied and cleaned. Even though it was old, the kitchen was clean, the bathrooms were clean, and we knew there were original hardwood floors under the carpet, so before we photographed it we had someone remove the carpet and the tacking to show the wood floors the next owner would be working with. The photos came out far better and the condo showed far better, and we secured a buyer: another agent who saw the value in the property and the deal and bought it for herself as an investment. We never had to go on the market.

If you are not sure what is worth fixing, I’d rather help you decide before you spend money. Compass also offers Market Ready Concierge, which can front prep costs with nothing due upfront. Interest and fees apply, and it is repaid at closing, when the listing ends, or after 12 months. I explain it in how Market Ready Concierge works.

If you have a cash offer in hand, or a stack of letters, call me. The first conversation costs you nothing. We will talk about how selling with and without representation compares, what each could cost you, and what listing your house would look like. If you decide to work with me, we sign a listing agreement, and from there I can advise you on your offers and tell you plainly what I would do: take the offer, counter it, or list the house. Request a home value review or get in touch.

Is a cash offer always lower than the open market?

Not always. Some cash buyers are regular homebuyers, and some offers come in at full price. Once we are working together, I compare each offer against the likely market result so you can see where it lands.

Can I get a cash offer and still use an agent?

Yes, and that is how I would do it. Once we are working together under a listing agreement, your agent can negotiate the cash offer or compare it against others if you list.

Do I have to put my house on the MLS?

No. You can choose a private option. Unless you have a reason to keep the sale quiet, I would recommend the MLS, since it brings the most buyers.

What does it cost to talk to an agent about listing?

Nothing. The conversation does not commit you to anything, and it explains how selling with and without an agent compares, including what going without could cost you. Specific advice on an offer starts once you are working with an agent under a listing agreement.

Is this legal or tax advice?

No. If your sale could create a large taxable gain, talk to a CPA first. I explain the basics in capital gains when you have owned a home for 30 years.