Tyce Ortman REALTOR

By Tyce Ortman | July 17, 2026

“I got a cash offer on my house — should I just take it?” I hear this a lot, usually from sellers who’ve gotten a letter, a text, or a knock from someone promising a quick, no-hassle sale. It’s tempting. No showings, no repairs, no waiting. But before you sign, it’s worth understanding exactly what you’re trading away, because “cash” and “convenient” almost always mean “for less.”

The honest answer isn’t that cash offers are a scam or that listing is always right. It’s that the two paths serve different situations, and the only fair way to compare them is on net proceeds — what actually lands in your pocket after all the costs on each side.

What cash buyers actually pay

Not all cash offers are the same. There are really three kinds of cash buyers in the Sioux Falls market, and the discount you take depends heavily on which one you’re dealing with:

• An individual cash buyer — someone buying a home to live in without a loan. In a healthy market they often come in just 2 to 5% under list. This is the best-case cash scenario.
• An iBuyer like Opendoor, which operates here in Sioux Falls. They use data-driven pricing to offer closer to market value — typically 70 to 80% of value — but charge a service fee of 5 to 8% and buy homes in reasonable condition.
• A “we buy houses” investor or flipper — the letters and yard signs. They usually target 50 to 70% of market value because they’re pricing in repairs plus their own profit, and they specialize in distressed or hard-to-sell homes.

Across all cash buyers, the average discount runs about 9 to 11% below what a financed buyer would pay. On a Sioux Falls home near the current median of roughly $349,000, that’s about $35,000 off the top for an average cash deal — and far more if you’re selling to an investor at 70% of value.

The net-proceeds math that actually matters

Here’s where sellers trip up: they compare the cash offer to the list price and conclude the gap is huge. But a listing has costs too, and a cash sale has fewer of them. The real comparison is net-to-net.

On the listing side, plan for roughly 5 to 6% in agent commission, another 1 to 3% in seller closing costs, any pre-listing repairs or prep, and holding costs — mortgage, taxes, insurance, and utilities — that can run $2,000 to $3,000 a month while the home is on the market. A cash sale strips most of that away: often no commission, no repairs, buyer-covered closing costs in some cases, and a closing in weeks instead of months.

So the gap narrows — but in a market like Sioux Falls, it rarely closes. Take a $350,000 home in good condition. Listed and sold near asking, after about 5.8% commission and typical closing costs, you might net somewhere around $318,000 to $325,000 before your mortgage payoff. An iBuyer offer at roughly 90% of value minus fees might net you closer to $290,000 to $300,000, and a 70%-of-value investor offer lands near $245,000. Even after you subtract commission, prep, and a month or two of carrying costs, the listing typically comes out $20,000 to $40,000 ahead — and much further ahead of an investor offer.

The exception is a home that needs serious work. If you’re staring at a $40,000 roof-and-foundation problem you can’t or won’t fix, the repair estimate, the holding time, and the risk of a financed buyer walking after inspection can swing the math toward cash in a hurry.

When cash actually makes sense — and when it doesn’t

Cash isn’t wrong. It’s just right for a narrower set of situations than the marketing suggests. Lean toward a cash offer when:

• The home needs major repairs you can’t fund or don’t want to manage.
• You’re facing a hard deadline — a job relocation, a foreclosure timeline, settling an estate.
• There are title or financial complications that would scare off a traditional buyer.
• You value certainty and privacy over squeezing out the last dollar — no showings, no deal falling through at the appraisal.

Lean toward listing on the open market when:

• Your home is in reasonable condition or needs only cosmetic work.
• You have 60 days or more of runway.
• You want top dollar and can tolerate showings and a normal closing timeline.

That second list describes most Sioux Falls sellers right now. Our market is still healthy: the June median sale price was around $349,000, well-priced homes are going under contract in roughly 19 days, sellers are getting about 98.6% of their list price, and inventory is down about 30% from a year ago. When good homes sell fast and near list, the speed advantage of cash shrinks and the price gap is hard to justify. A cash offer’s biggest selling point — a quick, certain sale — matters a lot less when a listed home sells in three weeks anyway.

The fine print sellers forget

A couple of things hold true no matter which route you choose. A cash sale still closes through a title company — here in Sioux Falls, First Dakota Title or a comparable closer handles settlement — and the South Dakota real estate transfer fee of $0.50 per $500 of price still comes out of your side, about $350 on a $350,000 sale. And selling for cash, or as-is, does not free you from disclosure. You still complete the Seller’s Property Condition Disclosure Statement based on what you actually know about the home. “Cash” changes the buyer and the timeline; it doesn’t change your legal obligations as a seller.

If you’ve got a cash offer in hand, the smartest move is to get a real listing estimate to compare it against — net to net, with your actual repair and holding costs plugged in. That’s a conversation I’m glad to have before you decide, with no pressure to list. Sometimes the cash offer really is the right call. More often, once we run the numbers, it isn’t.

Frequently Asked Questions

How much less do cash buyers pay in Sioux Falls?
It depends on the buyer. Cash buyers pay about 9 to 11% less than a financed buyer on average. An individual cash buyer in a healthy market may come in just 2 to 5% under, iBuyers like Opendoor typically offer 70 to 80% of value and charge a 5 to 8% service fee, and “we buy houses” investors often target 50 to 70% of market value. On a $350,000 Sioux Falls home, that spread can be $25,000 to well over $100,000.

Is a cash offer really better than listing my house?
A cash offer is faster and more certain, but it usually nets less money. Listing tends to win when your home is in good condition, you have 60 or more days, and the market is healthy, which describes most of Sioux Falls right now. Cash tends to win when the home needs major repairs, you’re facing a deadline, or you value speed and certainty over top dollar.

Do I still pay closing costs and disclose on a cash sale in South Dakota?
Yes. A cash sale still closes through a title company like First Dakota Title, and the South Dakota real estate transfer fee of $0.50 per $500 of price still comes out of the seller’s side. You also still complete the Seller’s Property Condition Disclosure Statement based on your actual knowledge; selling for cash or as-is does not remove your duty to disclose.

How fast can I close on a cash offer in Sioux Falls?
Very fast. Local cash investors can close in as little as 5 to 14 days, and iBuyers like Opendoor let you pick a closing date roughly 14 to 60 days out. There’s no financing or appraisal contingency to clear, which is the main reason cash offers feel so certain compared with a financed buyer.

What’s the difference between an iBuyer and a we-buy-houses investor?
An iBuyer like Opendoor uses data-driven pricing to make an offer closer to market value, typically 70 to 80% of value with a 5 to 8% service fee, and buys homes in reasonable condition. A “we buy houses” investor usually targets 50 to 70% of market value because they focus on distressed properties they plan to repair and resell. The investor is faster and takes worse condition; the iBuyer usually pays more.

Selling in Sioux Falls?

A cash offer buys you speed and certainty; a listing usually buys you more money. In today’s Sioux Falls market, where good homes sell fast and near list, the listing wins for most sellers — but the only way to know for sure is to compare net to net with your real numbers.

If you’re buying or selling in Sioux Falls or the surrounding area, I’m happy to run a free net-proceeds comparison against any cash offer you’ve received, with no pressure to list. Reach out anytime at tyceortman@gmail.com.

About Tyce Ortman

Tyce Ortman is a real estate agent with eXp Realty serving the greater Sioux Falls, South Dakota area and the Madison community. He specializes in helping first-time home buyers and sellers, with a focus on pricing properties right and finding each client the perfect home. Connect with Tyce at tyceortman@gmail.com.