Selling a House for Cash in Florida

Four kinds of cash buyer, and how each one makes money

Cash offers come from very different buyers, and they price your home differently.

• iBuyers. Companies that make instant offers online, then resell. They charge a service fee, usually deduct repairs after their own inspection, and buy mostly newer, standard homes in larger metro areas.
• Local investors. The we-buy-houses signs and mailers. They buy to renovate and resell, so their offer is built backward from the after-repair value.
• Wholesalers. They sign a contract with you and then sell (assign) that contract to an investor for a fee. You may not meet the real buyer until closing, if at all.
• Retail cash buyers. Individuals buying a home to live in, often retirees or second-home buyers, who simply have the money. They find you through the MLS and usually pay close to market value.

The first three need a margin. The fourth does not. That is why exposure to the open market matters even when cash is the goal.

How investors arrive at their number

Most investor offers follow a simple formula: what the house would sell for after repairs, minus repair costs, minus holding and selling costs, minus profit. A rule of thumb many flippers use is to pay no more than about 70% of after-repair value minus repairs. Not every buyer uses it, but it explains why an investor offer on a dated house can land far below the Zillow estimate.

The current market adds pressure. Zillow's statewide index is 6.9% below its June 2024 peak, and the condo index is 16.3% below its December 2023 peak. Investors price in the time it takes to resell, so in a slower market their margins get wider. Before you weigh any offer, get an honest estimate of what the house would bring on the open market in its current condition and after basic prep. Without that number you have nothing to compare the cash offer to.

iBuyer vs agent listing: line up three net sheets

An iBuyer offer often looks close to market until the deductions arrive. A fair comparison lines up three sheets side by side:

• The iBuyer or investor net: offer price, minus service fee, minus repair deductions, minus your usual seller costs.
• The listed-as-is net: realistic sale price for the home in current condition, minus listing costs, any buyer-agent compensation or concessions you choose to offer, and seller closing costs.
• The prepared-listing net: realistic price after modest prep (paint, cleaning, small repairs), minus the prep cost and the same selling costs, and a few extra weeks of carrying costs.

Deed doc stamps ($0.70 per $100 of price in most counties, $2,627.53 on $375,361), the tax proration and lien payoffs apply in all three. Commissions are negotiable, so ask for written quotes before you build the listing sheets. When I run these sheets for a seller, the gap between the cash net and the listing net is the figure that makes the decision.

When a cash sale makes sense in Florida

Cash is the right call more often than agents admit, mostly when financing or insurance is the problem:

• The roof or systems make the home hard to insure. An old roof or a failed 4-point inspection can block a buyer's insurance, and without insurance there is no mortgage.
• The condo has trouble with lenders. Pending milestone inspection repairs, underfunded SIRS reserves or a large special assessment can make a building non-warrantable, which shrinks the financed buyer pool.
• Storm or water damage that you cannot or will not repair.
• An estate or inherited home that heirs want settled quickly. Inherited property generally gets a stepped-up basis, which often reduces the tax on a quick sale.
• A deadline: a job move, a foreclosure timeline, a divorce settlement.

If none of these apply and the home is in decent shape, a financed buyer on the open market will usually pay more.

How to vet a cash offer before you sign

The price is one line of the contract. The terms decide whether it closes. Check each of these:

• Proof of funds dated recently, in the name of the buyer on the contract.
• Deposit size and the date it is due to a licensed title company or attorney escrow. A $500 deposit on a $300,000 house tells you how committed the buyer is.
• Inspection period. A long one with an easy exit lets a buyer tie up your house and renegotiate later. Seven to ten days is common for cash.
• Assignment clause. If the contract says the buyer or assigns, it can be sold to someone else. Decide whether you accept that.
• Title company. Use one you choose or can check independently.
• Who pays what. Some buyers advertise that they pay all closing costs. Confirm it in the contract.

Your disclosure duty stays the same in a cash sale. AS IS terms mean you do not repair; they do not excuse hiding a known defect.

Between signing and closing on a cash deal

Even without a lender, the title company needs time. It searches title and municipal liens, gets payoff letters from your mortgage lender and any home equity line, and requests estoppel letters if there is an HOA or condo association. Open permits and code enforcement liens are the usual surprises on older homes, so pull your permit history before you list. If you are a foreign seller, FIRPTA withholding applies to a cash sale exactly as it does to a financed one. And if you need a few days after closing to move out, write the post-closing occupancy period, the holdback amount and the condition at move-out into the contract instead of relying on a handshake.

Getting a cash buyer and a fair price at the same time

You do not have to choose between the mailer and the open market. List the home on the MLS, state that you will consider cash and as-is offers, and set a short window for offers. Retail cash buyers, investors and financed buyers then compete on the same house. Have your roof permit, wind mitigation report, insurance history and any repair estimates ready, because cash buyers price uncertainty hardest. This isn't legal or tax advice; for the tax side of a quick sale, talk to a CPA. If a home valuation is the missing piece, that is the first number to get before you answer any cash offer.