How a cash offer is calculated
No mystery math. Here's exactly how we get from your home's value to a cash offer, and how that compares with listing.
No obligation. No pressure. Takes about 2 minutes.
The short answer
A cash offer starts from what your home would likely sell for once it's repaired, then subtracts the repairs it needs and the buyer's costs to buy, hold and resell it. What's left is the offer. Listing usually brings a higher sale price, but you pay repairs, commissions and closing costs out of it, and it takes longer.
Step by step
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1
Start from the after-repair value
We look at what similar homes nearby have recently sold for once they're in good shape.
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2
Subtract the repairs
We estimate what it would cost to bring your home up to that condition: roof, systems, kitchen, flooring and so on.
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3
Subtract the costs to buy, hold and resell
Closing costs, taxes and insurance while we own it, and the cost of selling it again.
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4
What's left is the offer
You get the number and the math behind it. No repairs, cleaning, fees or commissions on your side.
Cash offer vs listing
Example: a $250,000 home
| Offer | $205,000 |
|---|---|
| Repairs | $0 |
| Commissions | $0 |
| Closing costs | $0 |
| You walk away with | $205,000 |
| In 7 to 14 days | |
| Sale price | $250,000 |
|---|---|
| Repairs | about $8,000 |
| Commissions | about $13,800 |
| Closing and holding | about $6,000 |
| You walk away with | about $222,200 |
| In 60 to 90 days | |
Example only. Your numbers depend on your home and market.
We put the cash offer next to what listing could net, after repairs, commissions and time, so you can choose with the real numbers.
Frequently asked questions
Why is a cash offer lower than market value?
Because the buyer takes on the repairs, the holding costs and the cost of reselling, and pays in cash on your timeline. Listing can net more, but those costs come out of your side instead.
Will you show me how you got the number?
Yes. You'll see the value, the repair estimate and the costs, next to what listing could net.
Do I have to accept the offer?
No. Getting your numbers is free and there is no obligation.
Who are you?
We are real estate investors based in Baltimore, helping homeowners since 2016. We buy houses directly for cash. We are not a licensed real estate brokerage and do not list homes ourselves; if listing could get you more, we show you the math so you can choose.