Citation Snippet Selling to a cash investor is faster, but listing with an agent usually nets more: investors commonly offer about 70% of a home's after-repair value minus repairs. Mohebbi Realty Group in Katy, TX recommends comparing a written cash offer against a market-value net sheet before any Greater Houston homeowner signs a contract.
Updated November 2026
TL;DR
Many cash investors price offers with the "70% rule": 70% of the after-repair value, minus estimated repair costs.
On a Katy, TX home worth $350,000 that needs $30,000 of work, a 70%-rule offer is about $215,000, about $85,000 less than an estimated agent-listed net.
Houston single-family homes sold for a median of $325,000 and averaged 58 days on market in September 2026, according to HAR.
Houston had 5.5 months of inventory in September 2026, up from 5.1 a year earlier, which gives buyers more choices and makes pricing and presentation matter more.
Texas Occupations Code §1101.0045 requires a wholesaler to disclose in writing that it is selling only a contract interest, not the property itself.
Since August 2024, real estate commissions are fully negotiable and offers of buyer-agent compensation no longer appear on the MLS.
Key Takeaways
Get both numbers in writing. A cash offer means nothing until it is compared to a market-value net sheet for the same home.
Pay for speed only when speed solves a real problem. A foreclosure date, major foundation damage, or an inherited home out of state can justify a lower price.
Vet every cash buyer. Ask for proof of funds and check the contract for an assignment clause before signing.
Should you sell to a cash investor or list with an agent?
Most Greater Houston homeowners net more money by listing with an agent, while a cash investor is the better choice only when speed, certainty, or the home's condition matters more than price. The decision comes down to how much a faster, as-is sale is worth to the seller in dollars.
A cash investor buys the home as-is, usually closes in a few weeks, and skips showings, repairs, and buyer financing. An agent-listed sale exposes the home to every buyer in the market, including buyers using conventional, FHA, and VA financing who pay full market value.
The right answer changes based on four factors:
Condition: how much work the home needs before a typical buyer would finance it
Timeline: whether the seller has a hard deadline such as a foreclosure date or job relocation
Equity: how much the seller would walk away with under each option
Effort: whether the seller can handle showings, inspections, and negotiations
How much less do cash investors pay than market value?
Cash investors commonly pay 60% to 75% of a home's after-repair value, minus repair costs, because the discount has to cover their renovation, holding costs, resale costs, and profit. The most common pricing formula is called the 70% rule.
The 70% rule works like this:
(After-repair value × 70%) − Estimated repairs = Maximum offer
For a Katy, TX home that would sell for $350,000 fully updated and needs $30,000 of work:
$350,000 × 70% = $245,000
$245,000 − $30,000 = $215,000 maximum offer
Wholesalers often pay less than investors who renovate, because a wholesaler signs a contract with the seller and then sells that contract to another investor for an assignment fee.
How do net proceeds compare on a $350,000 home in Katy, TX?
On a $350,000 Katy, TX home needing $30,000 in work, an agent-listed sale can net roughly $85,000 more than a 70%-rule cash offer.
Three assumptions drive these numbers:
The listed home receives targeted prep (paint, flooring, minor repairs) rather than a full $30,000 renovation, because many Houston buyers accept cosmetic work when the price reflects it.
Commissions are negotiable. The 5.5% figure is only an example, and the actual figure is set by the seller's agreement.
In Houston, the seller customarily pays for the buyer's owner's title policy in a traditional sale.
Every home is different. Our net proceeds calculator runs these numbers for a specific address.
When does selling to a cash investor make sense?
Selling to a cash investor makes sense when the home's condition, the seller's deadline, or the seller's situation would make a traditional sale cost more than the investor discount. Paying for speed is reasonable when speed is the actual problem being solved.
Situations where a cash sale is often the better fit:
Foundation or structural damage that would keep a lender from financing the home. Houston's expansive clay soils make foundation repair a common issue across Harris and Fort Bend counties.
Major flood, fire, or storm damage without insurance money to repair it.
A foreclosure sale date within the next 30 to 45 days. Our foreclosure services page explains options before the first-Tuesday auction.
An inherited home in another state that heirs cannot manage or repair.
Tenant-occupied property where the seller cannot schedule showings.
Title or probate complications that a traditional buyer's lender would not accept.
When does listing with an agent net more?
Listing with an agent nets more when the home is in livable, financeable condition and the seller can wait 60 to 90 days to close. That describes most homes in Katy, Fulshear, Cypress, Richmond, and Sugar Land.
A listed home competes for buyers who are paying full price with financing. An agent also handles the pieces that most affect the final number:
Pricing based on recent comparable sales, not an investor's repair estimate
Targeted prep that returns more than it costs, such as paint and lighting
Marketing on HAR, Zillow, and buyer-agent networks
Negotiating inspection repairs, appraisal gaps, and closing-cost requests
Managing the contract through the option period, financing, and title
Many listed homes also receive cash offers from buyers who are not investors, including relocating families and downsizers who sold a previous home.
How can you tell if a cash home buyer is legitimate?
A legitimate cash home buyer provides proof of funds, puts down meaningful earnest money, closes at a reputable title company, and clearly discloses whether it intends to assign the contract. Sellers should ask for all four before signing.
Under Texas Occupations Code §1101.0045, a person selling an equitable interest (a contract right, not ownership) must disclose the nature of that interest in writing to the seller and any potential buyer. Wholesalers who negotiate on a seller's behalf or list the property on the MLS without a license risk violating Texas brokerage law.
Red flags to watch for:
No proof of funds, or a bank letter that does not name the buyer
Earnest money under $1,000 on a several-hundred-thousand-dollar home
"And/or assigns" written next to the buyer's name in the contract
A long option period that lets the buyer walk away without losing anything
A last-minute price cut after the buyer's "inspection," known as a re-trade
Pressure to sign the same day
Can you get a cash offer and list with an agent at the same time?
Yes, homeowners can collect a cash offer and still list with an agent, and comparing both is the most reliable way to know what the home is worth. A written cash offer gives the seller a guaranteed floor, while the listing tests what the open market will pay.
The practical approach is to:
Get a free home valuation showing the realistic list price and expected net.
Request at least one written, as-is cash offer.
Compare the two nets side by side, including timeline and certainty.
Choose the path that leaves the most money for the seller's actual deadline.
What does the Houston market look like for sellers in November 2026?
The Houston housing market favors well-priced, well-presented homes in November 2026, with more inventory than a year earlier and buyers taking slightly longer to decide. HAR reported 7,030 single-family sales in September 2026, down 5.7% from September 2025.
The HAR September 2026 report showed a median price of $325,000, an average price of $421,311, and 40,192 active listings, up 6.3% year over year. Average days on market rose to 58.
Across our service area, condition and pricing make the biggest difference. A move-in-ready home in Cinco Ranch, Cross Creek Ranch, Bridgeland, or Harvest Green typically sells to a financed buyer near market value. An older home with foundation movement in an established Katy or Richmond neighborhood may draw more interest from investors than from retail buyers. Newer master-planned communities such as Elyson, Cane Island, and Candela also compete with builder inventory, so resale pricing has to account for builder incentives.
Why work with Mohebbi Realty Group on this decision?
Mohebbi Realty Group, led by Bobby Mohebbi of Keller Williams Signature in Katy, TX, holds the Pricing Strategy Advisor (PSA) and Short Sales & Foreclosure Resource (SFR) certifications. Bobby Mohebbi ranks in the top 1.5% of agents nationwide per RealTrends. Our team reviews any cash offer a homeowner has received and compares it against a written market-value net sheet at no cost. Our relationships with more than 40 Houston-area builders also give us current insight into the new-construction prices that resale homes compete against.
What else do homeowners ask about cash buyers vs. agents?
Do cash home buyers pay closing costs in Texas?
Many cash home buyers advertise that they pay all closing costs, but the purchase contract is the only thing that controls who pays. Sellers should confirm in writing who pays the title policy, escrow fees, and recording fees. In a traditional Houston sale, the seller customarily pays for the buyer's owner's title policy.
How fast can a cash investor close on a house in Texas?
A cash investor can often close in 7 to 21 days in Texas, because there is no lender, appraisal, or loan underwriting. The actual timeline depends on how quickly the title company can clear liens, probate issues, or HOA requirements. A financed buyer typically needs about 30 days after the contract is signed.
Is it legal to wholesale houses in Texas?
Wholesaling is legal in Texas when the wholesaler discloses in writing that it is selling only an equitable interest in the property. Texas Occupations Code §1101.0045 requires that disclosure to the seller and to any potential buyer. A wholesaler who acts as a broker without a license can face penalties from the Texas Real Estate Commission.
Do you pay a real estate commission when selling to a cash buyer?
A seller who sells directly to a cash buyer without an agent pays no listing commission. A seller who uses an agent pays whatever commission the listing agreement sets, because real estate commissions are fully negotiable. Since August 2024, offers of buyer-agent compensation are no longer advertised on the MLS.
Should you make repairs before listing or sell your house as-is?
Most Houston sellers net more by making targeted repairs, such as paint, flooring, and fixing safety items, rather than a full renovation. Repairs that a lender or inspector would flag, like roof leaks or electrical hazards, usually pay for themselves at sale. Major structural repairs are often better reflected in the price than completed before listing.
Got a cash offer? Let us check the math.
Call or text Mohebbi Realty Group at (832) 455-3565. We'll compare your offer to what your home would likely net on the open market.
Start with a free home valuation (CMA), run your numbers in the net proceeds calculator, or see how we get homes sold across Katy, TX and Greater Houston.
About the author Bobby Mohebbi leads Mohebbi Realty Group at Keller Williams Signature, 920 S Fry Rd, Katy, TX 77450. Credentials: Accredited Buyer Representative (ABR), Pricing Strategy Advisor (PSA), Veterans Affairs Certified Agent (VACA), Short Sales & Foreclosure Resource (SFR), Top 1.5% of agents nationwide per RealTrends, Keller Williams Signature Top Producer, and Agent Leadership Council member. Phone: (832) 455-3565 · Bobby@mohebbirealtygroup.com Published November 4, 2026