The short version
- ✓Cash offers are based on the home's after-repair value minus repairs, holding costs, and a modest margin.
- ✓A lower headline number can still net you more once you subtract repairs, agent commissions, and months of carrying costs.
- ✓A trustworthy buyer will show you the math and tell you when listing would net you more.
How a real cash offer is calculated
Reputable cash buyers use a straightforward formula. They estimate what the home would be worth fully fixed up (its after-repair value), then subtract the cost of the repairs it needs, the costs of owning it while it's being renovated and resold, and a reasonable profit margin. What's left is the offer.
That's why a home needing significant work gets a lower offer than one that's move-in ready — the buyer is taking on the repairs, the risk, and the time that you'd otherwise have to. You're trading a slice of the top-dollar price for speed, certainty, and zero hassle.
Why 'lower' isn't the same as 'less'
Selling on the open market has costs that quietly add up: agent commissions, repairs and staging to make it show well, months of mortgage payments, taxes, and utilities while it sits, plus buyer concessions at closing. Add those up and the retail sale price you were picturing shrinks.
A cash offer skips almost all of that. When you compare the net — what actually lands in your pocket after every cost — the gap is often much smaller than the headline numbers suggest, and for a home that needs work it can flip entirely in the cash offer's favor.
How to spot an honest buyer
The tell is simple: an honest buyer shows their work. They'll walk you through how they reached the number, and they'll tell you plainly when you'd net more by listing on the market instead. That's the opposite of a high-pressure lowball.
That's exactly how we operate. We start by showing you every option — a cash offer, what an as-is listing might fetch, even keeping it as a rental — so you can see the full picture and never feel cornered into a number.
Want this walked through for your situation?
Tell us about your property and we'll lay out every option and a fair number — free, no pressure, no obligation.
See My OptionsFrequently asked questions
Do 'we buy houses' companies pay market value?
Generally no — a cash offer is below full retail because the buyer covers repairs, holding costs, and risk you'd otherwise carry. But after you subtract commissions, repairs, and months of carrying costs from a retail sale, the net difference is often small, and for a home needing work the cash offer can net you more.
Are cash home buyers a scam?
Legitimate ones aren't — but the industry has its share of bad actors. Look for a local buyer who shows you how they calculated the offer, puts no pressure on you, charges no fees, and is willing to tell you when listing would be better for you.
Can I get more than one offer?
Absolutely, and you should. A confident, honest buyer welcomes it. We're happy to be one of the numbers you compare.
Is the offer really free with no obligation?
Yes. Our offer and consultation cost nothing and carry no obligation. If it's not the right move for you, that's a perfectly fine answer.