Cash Buyer vs. MLS Listing vs. iBuyer: The Real Differences
3 min read · Last updated 2026-08-03 · Reviewed by Camilo Palacio, Licensed Florida Real Estate Professional (License #3280644, REALTOR®)
Three ways to sell a house exist: list it on the MLS and wait for a buyer, take a cash-funded price from an investor who buys to resell later, or use an iBuyer whose algorithm sets a price and charges a service fee off the top. Cash Flow Deals is a fourth option: a real estate investment company that locks your net price before repairs are scoped, with a real buyer's own lender funding the purchase at closing.
| Factor | Traditional Route | Cash Flow Deals |
|---|---|---|
| Who sets your price | MLS: the market and buyer negotiation set price. iBuyer: an algorithm sets a price and deducts a service fee. | A net price locked before repairs are scoped, arranged through a licensed local broker partner |
| Timeline to close | MLS: typically 30 to 60 days after accepting an offer, plus time on market. iBuyer: as fast as days, but only for homes the algorithm accepts. | Set by a real buyer's own lender, with title transferring once at closing |
| What you net after fees | MLS: minus negotiated agent compensation. iBuyer: minus a service fee plus repair deductions after inspection. | A separate line-item fee on the closing statement, not a markup on price |
| Repair requirements | MLS: often requested during a buyer's inspection. iBuyer: deducted from your price after their own inspection. | Net price locked before repairs are scoped |
Selling on the MLS: How It Actually Works
Listing on the MLS puts your house in front of every buyer's agent searching that market. You set an asking price, buyers submit offers, you negotiate on price and terms, and the winning buyer typically needs 30 to 60 days to close once their mortgage lender finishes underwriting. You control the price and can wait for the right buyer, but you're also exposed to inspection negotiations, financing falling through, and the time your house sits on the market before an offer even arrives. Agent compensation is part of this route too, and since August 17, 2024, that compensation has to be negotiated directly rather than posted on the MLS.
What an iBuyer Actually Pays You
An iBuyer runs your address and public data through an algorithm to generate a price, then buys your house directly, holds it, and resells it later. The convenience comes at a cost: iBuyers typically charge a service fee in the mid-single-digit percent range of your sale price, on top of deductions for repairs their own inspection finds after you've already accepted their number. The model isn't guaranteed to stick around either. Zillow shut down its iBuying business, Zillow Offers, in November 2021, after the division posted a $421.6 million loss in Q3 2021 and the company decided to sell off roughly 9,790 homes it was still holding.
What Changed With Real Estate Commissions in 2024
The National Association of Realtors settled the Sitzer/Burnett litigation, and the resulting practice changes took effect August 17, 2024. MLS listings can no longer publish an offer of buyer-agent compensation, and any compensation a buyer's agent receives has to be spelled out in a written agreement signed before that agent starts showing homes, at an amount that's negotiated rather than assumed. That means a traditional MLS sale no longer comes with an automatic, fixed commission bite. What you actually pay is negotiated case by case.
Where Cash Flow Deals Fits Into the Picture
Cash Flow Deals is a real estate investment company, not an iBuyer and not a brokerage. It locks a net price for your house before repairs are scoped, using a novation-based, flat-fee process arranged through a licensed local broker partner. The process runs three steps: request a net-price review, confirm that number before any repair scoping happens, then close once a real buyer's own FHA or conventional lender funds the purchase. Title transfers once, directly from you to that buyer. The fee shows up as a separate line item on the closing statement, not a markup baked into the price.
Which Route Actually Nets You More
There's no single right answer, because it depends on your house, your timeline, and how much risk you're willing to carry. The MLS route can net the highest sale price if your house shows well and the market is active, but it comes with the most uncertainty and time. An iBuyer trades a fast, algorithm-set number for a service fee and post-inspection repair deductions you don't see until after you've accepted. Cash Flow Deals locks the net number before repairs are even scoped, trading some upside for certainty. Run your own numbers against your actual timeline before deciding.
Common questions
What's the real difference between a cash buyer and an iBuyer?
A cash buyer is typically an individual investor or company paying with funds already on hand, often making its own decisions about price and repairs. An iBuyer is usually a larger company using an algorithm to set price at scale, charging a service fee, and reselling the house later.
Do iBuyers still operate after Zillow left the business?
Yes. Other iBuyers continued operating after Zillow shut down Zillow Offers in November 2021, though the shutdown showed the model carries real financial risk even for large, well-funded companies.
Are real estate commissions still normal since the 2024 settlement?
Compensation is still common, but it's negotiated directly with your agent in a written agreement rather than posted on the MLS or treated as a fixed percentage, following the practice changes that took effect August 17, 2024.
Does Cash Flow Deals take title to my house like an iBuyer does?
No. Cash Flow Deals does not take title. Title transfers once, directly from you to a real buyer, whose own lender funds the purchase.
Which option closes the fastest?
iBuyers and Cash Flow Deals can both move faster than a typical MLS listing, since neither depends on a house sitting on the market waiting for a buyer to show up.