Some people buy off the MLS, offer full price and expect to make a profit, when they eventually sell.

I look at it slightly differently.

The added cost of sales both directions plays a role.

I contend that a seller can reduce their sales price by 5% or 6% or about $18,000 on a $300,000 sale if no real estate agent is needed, another point or 2 if a new loan from a lender is not needed, you still need a title report and escrow.

And for most people an inspection is needed, but some jurisdictions have taxes due on sale, (title transfer) IRS wants taxes on any increase they can get and NAR states it costs $7,000 on average to get a house ready for sale.

That's without any prepayment penalty on the loan or any "surprises" the house has to offer like rot, drainage problems, increase in property taxes because, "hey it's an increase in valuation" and then they get a higher insurance premium.

Does time and risk play a role, of course. The seller doesn't have time and doesn't want risk. The buyer is willing to assume that risk.

When we buy, we buy so that we can sell profitably. There is a cost to buying, a cost to hold and a cost to sell. Often we sell on lease option, below market which makes it easier for buyers, since they don't have to qualify at a bank. Sorry real estate agents, we sell without using agents. Attorney's understand contracts too, so we use them instead and save $15,000.

Our spreadsheet which we make available to interested parties includes

5% of the amount goes to the real estate agents

2% for loan originations

IRS tax on profit

attorney fees

seller spends $7,000 getting the place ready

pizzas for the contractors

$$ for things the seller forgot to tell us

We try to acount for everything that affects value and profit.

That doesn't include time and hassle factor.

When you strip away all of the expenses tied to a conventional bank loan based purchase, I think you come closer to the actual value of the property.