How cash buyers actually price your house.

Sellers often think cash buyers like us are pulling numbers out of thin air. We're not. The math is pretty simple — and worth understanding before you accept or reject any cash offer.

Here's the formula every responsible cash buyer uses:

After-Repair Value − Repair Costs − Holding Costs − Margin = Your Offer

Let's walk through each piece.

After-Repair Value (ARV)

This is what the property will be worth after we've finished the work. We pull comparable sales — typically three to six homes in the immediate neighborhood that have sold in the last 90 days, similar in size, condition, and features. From those, we estimate what the property will sell for once we've renovated it.

This is the most important number in the equation. If we get it wrong, everything else is wrong.

Repair Costs

What will it actually cost to get the property to that ARV? We're estimating systems (roof, HVAC, plumbing, electrical), structural issues, cosmetic updates, and code compliance work. We add a contingency — usually 10–15% — because surprises happen behind every wall. A house that needs $40,000 of obvious work is rarely a $40,000 renovation by the end.

Holding Costs

While we own the property — typically 4–8 months from purchase to resale — we're paying property taxes, insurance, utilities, financing if applicable, and the carrying cost of our capital. These add up faster than people expect.

Margin

Here's where it can sound mercenary, but it's the truth: we need to make enough on the deal to be worth doing. Otherwise we'd put our capital somewhere else. If we don't think we can hit a reasonable margin given the risk, we pass. The alternative is doing bad deals that hurt sellers, hurt our capital, and hurt our reputation.

Why your offer might net closer to retail than you think

A retail listing gets you the highest gross sale price. But after you subtract:

• 5–6% in realtor commissions
• The repairs they'd require you to make pre-listing
• Several months of carrying costs
• The risk of the buyer's financing falling through
• The hassle of showings, inspections, and renegotiations

...the math often comes out closer than people expect. Sometimes cash wins. Sometimes retail does. We'll tell you honestly.

How to get a stronger offer

A few things you can do to maximize what we'd offer:

• Send recent photos of the inside. The clearer our picture of condition, the closer we can offer to your floor instead of building in surprise-buffer.
• Tell us about anything unusual. Liens, code issues, tenants, previous insurance claims — surface these early. We're going to find them in title and inspection anyway.
• Tell us your real timeline. If you have flexibility, we can structure terms that work for both of us. Need to close in seven days? We can do that, but it costs us in flexibility and the offer reflects that.

If you've got a property you'd like an honest cash offer on, the request form takes about a minute. No obligation, no follow-up sequences, no spam.