For sellers exploring cash offers
A cash offer can be a great way to sell. It can also cost you more than you expect if you only look at the first number. My job is to help you see the full picture, so whatever you choose, you know exactly what you will walk away with.
A cash offer is only certain once the inspection period is over. Until then, it is a starting point for negotiation.
Most investors who buy houses to fix and resell start from one rule of thumb:
After-repair value is what your home would sell for once it is fully fixed up, not what it is worth today, as-is. Repairs are their estimate of everything it takes to get there, often with extra padding. The 70% is their cushion. The other 30% covers buying, holding and reselling the house, plus their profit. Some investors use 65%. In a hot market some stretch to 75%. The lower the percentage, the lower your offer.
A made-up but realistic DFW example: a house that would sell for $350,000 fully updated needs about $45,000 of work. $350,000 × 70% = $245,000, minus $45,000 = a $200,000 cash offer. Here is 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 updatesMaterials, labor, permits | $45,000 |
| Contingency for surprisesAbout 10% of repairs | $4,500 |
| Holding costs, about 5 monthsLoan interest and points, taxes, insurance, utilities, lawn care | $21,500 |
| Their costs to resellCommissions, 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.
You do not have to find these answers alone. I will go through each one with you.
You are not locked into a cash offer because you asked for one.
Sell directly to a buyer, as-is, on a short timeline. No showings and no financing risk.
Best fit: speed and simplicity matter most.
A shortened listing through Clever with aggressive pricing, so multiple buyers see the home at once and compete for it.
Best fit: you want to test the market without a long commitment.
Full market exposure with pricing based on closed sales, professional marketing, and a plan built around your goals.
Best fit: getting top dollar matters most.
If you lean toward cash, consider having the home inspected first. Then you know what the buyer will find, and we can hold them to their number instead of finding out what changed after you have planned your move.
How I help:
There is no pressure in any direction. I will give you my honest opinion, and the final decision will always be yours.
