If you're selling your home, you've probably looked up its Zestimate on Zillow. That number might feel like a good starting point—but it's not what you’ll actually pocket. Most homeowners are shocked by how much less they walk away with after all the costs of selling.
So why are Investor offers often 15–20% below the Zestimate? Because they are realistic. And in many cases, what they offer actually puts more in your pocket—faster and with less hassle.
Zillow shows you a top-line number. But what matters is your net proceeds —what’s left after expenses. Here's the formula:
Net Proceeds = Sale Price – (Commissions + Closing Costs + Repairs + Concessions + Taxes + Moving Costs)
Zillow’s algorithm pulls from public records and sales data—but it doesn’t factor in:
This shows the huge disparity between the Zestimate and what you really get. Even Zillow’s former CEO sold his home for 40% below its Zestimate.
Jen got a Zestimate for her home of: $500,000. A week later an investor send trough us an offer of: $425,000
At first, Jane felt the investor offer was a low ball. But the numbers tell a different story:
|
Item |
Amount |
Description |
|
Zestimate |
$500,000 |
Zillow’s estimated market value of the home. |
|
Sale Price |
$460,500 |
Sold for 7.9% less than Zestimate ($500,000 – $39,500). |
|
Agent Commissions |
$27,630 |
6% of sale price for listing and buyer’s agents. |
|
Closing Costs |
$9,210 |
2% of sale price for title insurance, escrow, and attorney fees. |
|
Transfer Taxes |
$4,605 |
1% of sale price for property transfer taxes (varies by region). |
|
Repairs |
$20,000 |
Cost of repairs (e.g., new flooring, minor fixes) to prepare home for sale. |
|
Seller Concessions |
$9,210 |
2% of sale price for buyer closing cost credits or minor repair allowances. |
|
Moving Costs |
$3,000 |
Cost for local move (movers, storage, etc.). |
|
HOA Transfer Fees |
$500 |
Fee for transferring HOA membership (if applicable). |
|
Total Costs |
$73,155 |
Sum of all selling-related expenses. |
|
Net Proceeds |
$387,345 |
Sale price ($460,500) minus total costs ($73,155). |
If Jane had chosen the investor offer, she would have taken home $399.500 (Closing costs included) And this does not include all the monthly payments of her credit card and mortgage that she would have saved by accepting the investor offer and using the proceeds to pay off debt.
So, the question becomes. Do you want a little less money now + the certainty of a place to stay or the uncertainty of an inflated Estimate?
|
Factor |
Sell2Rent |
Traditional Sale |
|
Offer Price |
$425,000 (realistic) |
$500,000 (hopeful) |
|
Time to Sell |
15 days (on average) |
3–6+ months |
|
Costs |
~$32,000 (no repairs/staging) |
$72,000–$98,000 (fees, staging, repairs) |
|
Net Proceeds |
~$393,000 |
$402,000–$428,000 |
|
Risk |
Low (fast, predictable close) |
High (delays, price cuts, failed deals) |
|
Accuracy |
Based on CMA or real-time market value |
Based on Zestimate (2.4–7.49% error margin) |
Zillow’s Zestimate looks nice—but it doesn’t show the real costs. Selling a home is expensive. If you want clarity, simplicity, and real numbers, talk to us. We make cash offers based on what *you’ll actually walk away with*—not some inflated guess.
👉 Contact us today to get a free, no-pressure valuation. We’ll show you what your home is really worth.