The short version
| Estate agent | Cash buyer | |
|---|---|---|
| Price | Market value, if a buyer can be found | Below market value, reflecting work, costs and risk |
| Fees | Agent's commission plus your legal fees | Often none to the buyer; some pay sellers' fees |
| Timescale | About five months on average (GOV.UK) | Days to weeks, or a date to suit you |
| Certainty | Can fall through until exchange | High, if the buyer is genuine and has the funds |
| Condition | Best for homes in good order | Any condition |
Source: Selling a home (GOV.UK)
When an estate agent is the better choice
- Your house is in good condition and easy to mortgage.
- You're not in a hurry and can cope with a sale falling through.
- The local market is busy for your type of property.
- Getting the highest possible price matters more than anything else.
A good local agent will market the house widely, handle viewings and negotiate. Ask for evidence of recent sales of similar homes nearby, and agree the fee and contract length before you sign.
When a cash buyer is the better choice
- A sale has already fallen through, perhaps more than once.
- The house needs major work or a lender won't lend on it.
- You're an executor and need a buyer who can work around probate.
- You're relocating or have a fixed date to meet.
- You're a landlord selling with tenants in place.
- You want certainty more than the last few thousand pounds.
At Belmont Road in Ashley Cross, a partner agent brought us a house whose sale had fallen through twice. We exchanged and completed in under two weeks.
Comparing the numbers properly
The fair comparison isn't the agent's asking price against the cash offer. It's what you'd actually receive, and when.
- Start with the price you'd realistically achieve on the market, not the highest asking price.
- Take off the agent's fee and any extra legal costs.
- Allow for months of bills, council tax and mortgage payments while you wait.
- Think about the risk of the sale falling through and the cost of starting again.
- Compare the result with the cash offer and the cash buyer's timescale.
Sometimes the open market still wins comfortably. Sometimes the gap is smaller than it first looked.
Choosing a cash buyer you can trust
Ask whether they are the buyer and the money is theirs, or whether they'll pass your house to an investor. Avoid anyone who charges upfront fees, presses you to sign quickly, or makes a high offer and then cuts it before exchange. Use your own solicitor. The Competition and Markets Authority's guidance explains that businesses mustn't mislead or pressure consumers.
Source: Unfair commercial practices guidance, CMA207 (Competition and Markets Authority)
You don't have to choose straight away. Many sellers put a house on the market and keep a cash offer as a fallback in case the sale doesn't go through.
A worked comparison
Here's an illustration with round, made-up numbers, to show how to compare like with like. Your figures will be different.
| Estate agent route | Cash buyer route | |
|---|---|---|
| Price | £300,000 (if a buyer is found and nothing falls through) | £265,000 |
| Agent's fee | Say 1.2% + VAT ≈ £4,320 | None |
| Months of holding costs while you wait | Say 5 months of council tax, insurance and bills | A few weeks |
| Risk of the sale falling through | Real, especially with a chain or a house that's hard to mortgage | Low with a genuine buyer |
| What you might actually receive | Less than the headline price, and later | £265,000, on a date you choose |
In this example the open market still wins on money, if everything goes smoothly. The question is how much the speed, certainty and lack of hassle are worth to you. For some sellers it's a lot; for others, very little.
Questions to ask before you decide
- To the agent: What have similar houses on this street actually sold for, not been listed at? How long did they take? What's the fee, the contract length and the notice period?
- To the cash buyer: Are you the buyer, and is the money yours? How did you reach your price? Will the price change after a survey? When can you exchange and complete?
- To yourself: What happens if the sale takes six months? What would it cost me if it fell through?
If you can answer those honestly, the right route is usually obvious.
Using both: the fallback approach
You don't always have to choose. Many sellers market a house through an agent and keep a cash offer as a fallback. If a good buyer comes along, they take it. If the sale falls through, or nothing suitable appears within an agreed time, they go back to the cash buyer.
Check your agency contract first. ‘Sole selling rights’ can mean you owe the agent a fee even if you sell privately; ‘sole agency’ usually doesn't, but read the terms. Tell the cash buyer you're testing the market so there are no surprises.
Situations where the open market clearly wins
- A well-presented family home in a popular area.
- No time pressure and no onward purchase at risk.
- A property any mortgage lender would be happy to lend on.
- Strong demand for your type of home in your street.
In those cases we'll tell you honestly that an agent is likely to get you more. Our offer is most useful where speed, certainty or condition matter.
What to do next
We're an independent buyer in Westbourne and we fund every purchase ourselves. Ask us for an offer and we'll explain how we reached it, so you can compare it fairly with an agent's valuation. See how selling your property to us works, or read how to sell your house fast for cash.
