STL Home Buyer Journey
George Kindler
13 Years Of Real Estate Experience At Your Fingertips
A company contacts you. They want to buy your house. Cash, fast, no showings, no contingencies. It sounds clean. It usually costs you between $40,000 and $100,000 depending on what your home is worth.
That is not an exaggeration. After 13 years working in St. Louis real estate and watching these deals up close, cash wholesale offers in this market typically land at around 50% of actual market value. Sometimes a little more. Rarely more than 60 to 65 cents on the dollar.
That gap is not an accident. It is how the business works. Understanding why helps you decide whether accepting makes sense in your situation -- or whether listing on the open market is the right call.
Cash buyers -- whether they are local wholesalers, regional iBuyers, or national "We Buy Houses" companies -- all use a version of the same formula. It starts with the After Repair Value (ARV): what the home would sell for on the open market in fully repaired condition. From there, they subtract their estimated repair costs, holding costs, transaction costs, and their required profit margin.
The industry standard formula is roughly 70% of ARV minus repairs. But the practical reality in St. Louis is that the offers land closer to 50% of actual market value -- not ARV, but what the home would realistically sell for as-is on the MLS.
Take a South County home with an as-is market value of $200,000 -- meaning a properly listed and marketed home would sell for $200,000 in the current MLS environment.
| Scenario | Cash Offer | MLS (Net After Costs) |
|---|---|---|
| Sale price | $100,000 | $200,000 |
| Commission / fees | $0 | -$12,000 (6%) |
| Title and closing | $0 | -$1,400 |
| Prorated taxes | $0 | -$1,200 (estimate) |
| Net to seller | $100,000 | $185,400 |
The gap in this example is $85,400. That is the cost of convenience in this scenario. Whether that is worth it depends on your situation -- but most sellers do not know the gap is that large when they accept.
There are real situations where the speed and certainty of a cash offer justifies the discount. The key is knowing your situation honestly:
If you receive a cash offer and are considering it, ask these questions before you sign anything:
Most cash buyers will answer these questions. The ones who will not -- or who pressure you to sign before you have time to think -- should be treated as a red flag.
Not all cash buyers operate the same way. Watch for these contract terms before you sign:
Before accepting any cash offer, get a market analysis from a licensed St. Louis agent. Most agents will provide a Comparative Market Analysis at no cost. This gives you a realistic picture of what the home would sell for on the MLS and a basis for calculating the actual gap between the cash offer and your alternative.
You are not obligated to list with the agent who provides the analysis. But having the number gives you informed leverage -- either to negotiate the cash offer upward or to make an informed decision to list instead.
Enter your cash offer, your property details, and what the investor told you about repairs. The Cash Offer Decoder shows you exactly how the offer was built -- and what you would net on the MLS instead.
Open Cash Offer Decoder → The exact formula cash buyers use -- and where they inflate the numbers. How Cash Buyers Calculate Offers in St. Louis → → The average gap between cash offers and MLS sale prices in St. Louis. What You Actually Lose Accepting a Cash Offer → →Are cash offers always below market value in St. Louis?
In the wholesale and iBuyer market, yes -- typically by a significant margin. Cash offers in St. Louis generally land around 50% of actual market value. There are exceptions for properties with serious condition issues that limit the buyer pool, but for a standard home in sellable condition, the MLS will produce a substantially higher net.
How fast can I actually close on the MLS vs a cash buyer?
Cash buyers typically close in 10 to 30 days. A well-priced MLS listing in St. Louis typically goes under contract within 7 to 21 days and closes in 30 to 45 days from contract. The time difference is often 2 to 4 weeks -- a small gap relative to the five- to six-figure difference in net proceeds.
Do I have to pay commission if I sell to a cash buyer?
No. Cash buyers typically pay no commission and cover their own closing costs. However, those savings are already factored into the low offer price -- the investor is not giving you a discount on fees out of generosity. The net to you is still far below what a listed sale would produce.
What happens if I accept a cash offer and the buyer backs out?
Review the contract terms carefully before signing. Many cash buyer contracts contain inspection or financing contingencies even though they are advertising as cash deals. Understand what the earnest money is, whether it is refundable, and under what conditions the buyer can exit before you sign.
Questions about what you are reading? I answer personally -- no team, no handoff.