How we calculate our offer
A cash offer on a house that needs work starts with what the house would sell for fully repaired, then subtracts what it will cost to get it there and resell it. We show you every one of these numbers, because an offer you can check is an offer you can trust.
The formula
− Repair costs
− Buying, holding and resale costs
− Buyer's margin for risk and profit
= Your cash offer
1. After-repair value
ARV is what your house would most likely sell for once it is fully updated, based on recent sales of similar, updated houses near you. Our owner is a licensed agent with MLS access, so this comes from real local sales, not an online estimate.
2. Repair costs
We walk the house and price each repair at what local contractors charge: roof, HVAC, plumbing, electrical, foundation, kitchens, baths, flooring, paint, clean-out. You get the list.
3. Buying, holding and resale costs
Closing costs on both ends, property taxes, insurance and utilities during the work, financing costs, and the commission and concessions when the finished house sells.
4. Margin
Whoever buys the house is taking the risk that repairs cost more and the market moves. That margin is what makes the deal worth doing; we keep it as small as the house allows.
A worked example
Illustrative numbers only — every house is different.
| After-repair value | $250,000 |
| Repairs (roof, HVAC, kitchen, flooring, paint) | − $55,000 |
| Buying, holding and resale costs | − $25,000 |
| Margin | − $25,000 |
| Cash offer | $145,000 |
Listing that same house unrepaired would mean fewer buyers who can finance it, discounts for the repairs, commission, and months of holding costs. If listing — or our Fix & List option — would clearly net you more, we will tell you. Compare cash vs. listing.