María and José’s Story: A Cautionary Tale About Equity

María and José had owned their Orlando home for almost 12 years. They raised their kids there, made small upgrades over time, and watched their neighborhood in East Orlando grow. When José’s job changed and they needed to relocate quickly, they decided to sell.

A friendly investor offered them a cash deal — no repairs, no showings, and a quick close. It sounded perfect. But when they compared the offer to what other homes nearby had sold for, they realized they’d be walking away with $45,000 less than their equity was worth.

They didn’t know it at first, but equity — the value you’ve built up over time — is something worth protecting. And when selling to a cash buyer, understanding that number can make a big difference in what you keep versus what you lose.

What Is Equity and Why It Matters

Your home’s equity is the difference between what your home is worth and what you owe on your mortgage. For example:
If your home’s market value is $380,000 and your mortgage balance is $220,000, your equity is $160,000.

Equity represents the wealth you’ve built through years of payments and appreciation. In Orlando, where prices have climbed steadily, that number can be significant. Cash buyers often offer convenience — but it’s crucial to know the true value of your equity before signing a contract.

The Appeal of Selling to a Cash Buyer

Selling to a cash buyer or investor in Orlando can be fast and stress-free. You can often:

• Skip repairs and cleaning
  
• Avoid showings and open houses
  
• Close in as little as a week
  
• Move on your timeline
  

For homeowners facing foreclosure, divorce, or relocation, these advantages are real. But speed can come at a price — often a lower sale amount that eats into your equity. That’s why “as-is” doesn’t have to mean “at a loss.”

How You Might Lose Equity Without Realizing It

When you sell to a cash buyer, you trade market exposure for certainty. That can be fine — as long as you understand what you’re trading.

Here’s how homeowners often lose equity:

• Undervalued offers: Some investors base offers on outdated or low comparable sales (comps).
  
• Skipping an appraisal or second opinion: Without an objective price check, you may not know the true market value.
  
• Hidden costs: Certain investors add “service” or “transaction” fees at closing.
  
• Pressure to close fast: Tight deadlines can discourage homeowners from seeking advice.
  

Run the Numbers: Cash-As-Is vs. Traditional Listing

Before deciding, do a side-by-side comparison like the one below. Use real numbers for your situation.

Example only. Your numbers will vary.

Sometimes, the cash offer is nearly equal once you factor in repairs and fees. Other times, the difference can be tens of thousands of dollars. Running the numbers ensures you protect your equity and make an informed choice.

3 Questions to Ask an Investor Before You Sell

Before signing an agreement with a cash buyer, pause and ask these three questions:

1. “Can you show me how you calculated your offer?”
   Ask for a clear explanation of comparable sales and repair estimates.
   
2. “Are there any fees or deductions I should expect at closing?”
   Honest investors will tell you upfront if they’re covering costs or passing them on.
   
3. “Can you provide proof of funds?”
   A legitimate buyer should be able to show they have the cash to close when promised.
   

These questions protect you from lowball offers and build trust with serious investors.

Understanding the Orlando Market

Equity protection starts with local awareness. Orlando’s real estate market has seen steady growth across Orange, Osceola, and Seminole Counties. Neighborhoods like Lake Nona, College Park, and Winter Park have appreciated faster than others, while some suburban areas have leveled off.

That means your home’s value — and your equity — depends on accurate, up-to-date information. Check free online estimates, but always compare them with recent local sales or an independent opinion from a licensed appraiser or real estate agent.

Orlando Real Estate Glossary

Equity – The portion of your home you truly own, calculated as market value minus mortgage balance.
Cash Buyer – An investor or individual who buys property without needing a mortgage loan.
As-Is Sale – Selling a home in its current condition without making repairs.
Comparable Sales (Comps) – Recent nearby home sales used to estimate a property’s market value.
Appraisal – A professional estimate of a home’s fair market value.
Closing Costs – Expenses paid at the end of a transaction (title fees, taxes, insurance, etc.).
Title Company – Handles legal paperwork and ensures the property title is clear.
Net Proceeds – The amount a seller receives after paying all costs and debts.
Escrow – A secure third-party account that holds funds during a transaction.
Due Diligence – The period for inspections and research before finalizing a sale.

How to Protect Your Equity

Protecting your equity isn’t about rejecting cash buyers — it’s about being informed. Here’s how Orlando homeowners can safeguard their hard-earned value:

• Get at least two offers — compare investor bids with a licensed agent’s market opinion.
  
• Request a “Net Sheet” — a simple breakdown of what you’ll actually walk away with after all costs.
  
• Ask questions early — never sign a contract you don’t fully understand.
  
• Consult professionals — a real estate attorney or trusted agent can help review your options.
  
• Know your timeline — sometimes waiting two more weeks can mean thousands more in your pocket.
  

Remember, the right investor will welcome your questions and transparency. Protecting your equity means protecting your financial future.

Local Resources

• Orange County Property Appraiser – ocpafl.org
  
• Orlando Regional REALTOR® Association – orlandorealtors.org
  
• Florida Department of Business & Professional Regulation – Check licenses and complaints.
  

Final Thoughts

Selling your Orlando home for cash can make sense — especially if you need speed, certainty, or flexibility. But your equity is valuable. Before you sign, take a deep breath, run the numbers, and get professional advice.

In María and José’s case, they negotiated with two investors and sold for $25,000 more than the first offer — all because they took time to understand their equity. You can too.