A cash offer is real. It can be fast, as-is and simple. It will also almost always be lower than what your home would sell for on the open market, sometimes by a lot.
That gap isn’t a trick. It’s the investor’s repairs, their costs to hold and resell the house, and their profit. This page walks through every piece, so the number doesn’t shock you and you can decide with your eyes open.
Send it to me and I’ll walk you through it line by line, so you know exactly what you’re agreeing to.
Most investors who buy houses to fix and resell start from one rule of thumb:
After-repair value (ARV) is what your home would sell for once it’s fully fixed up and looks like the best house on the street. Not what it’s worth today, as-is.
The 70% is their cushion. That remaining 30% of the finished value has to cover what it costs them to buy, hold and resell the house, plus their profit. Some investors use 65%. In a hot market some stretch to 75% or more. The lower the percentage, the lower your offer.
Repairs are their estimate of everything it takes to get to that finished value. They price these as contractors, often with extra padding, because they’re the ones paying for surprises.
Here’s a made-up but realistic DFW example. A house that would sell for $350,000 fully updated needs about $45,000 of work: roof, flooring, paint, kitchen refresh.
$350,000 × 70% = $245,000, minus $45,000 in repairs = a $200,000 cash offer. Here’s where the other $150,000 goes:
| Piece of the deal | Example |
|---|---|
| What the investor pays youThe cash offer | $200,000 |
| Their closing costs to buyEscrow, recording, lender fees if they borrow | $3,500 |
| Repairs and updatesThe flip budget: materials, labor, permits | $45,000 |
| Contingency for surprisesAbout 10% of repairs, for the foundation or plumbing nobody saw | $4,500 |
| Holding costs, about 5 monthsLoan interest and points, property taxes, insurance, utilities, lawn care. See below. | $21,500 |
| Their costs to resellAgent commissions, title, buyer concessions, about 8% | $28,000 |
| Investor’s profitPay for the risk, their time and the money they tied up | $47,500 |
| Total: the finished home’s sale price | $350,000 |
Example only. Every house, investor and market is different. This is not an offer, appraisal or estimate of your home’s value.
From the day an investor closes on your house to the day they sell it, they’re paying to own it. That “hold” is usually 3 to 6 months: a few weeks for permits and contractors, the repair work itself, then time on the market and time to close with the next buyer.
While they hold it, they’re paying:
Every extra month adds cost, which is why investors price in a cushion for delays. It’s also why an offer can drop if the inspection turns up something that makes the project longer.
Plenty of sellers need a few days or weeks after closing to move. In Texas, that’s handled with the Seller’s Temporary Residential Lease, a standard Texas Real Estate Commission form for a seller who stays in the home 90 days or less after closing. Here’s what to expect:
A cash offer isn’t the only way to sell quickly. If the number doesn’t work for you, I can list your home aggressively and put real buyers in front of it fast:
Instead of one investor setting the price, the market does. Call or text me at 817.372.9896 and I’ll walk you through how it would work for your home.
Likely cash offer range
A rough rule of thumb, not an offer. Don’t know your updated value or repair costs? That’s exactly what I can help with.
I’m not here to talk you out of a cash offer. Sometimes it’s the right call. I’m here to make sure you understand it: what the cash buyer is really paying for, what you’ll actually walk away with, and what to ask before you sign.
