Most sellers want to know one thing first: how much will a cash home buyer actually pay? There’s no single percentage that’s true for every house, but the math behind a fair offer isn’t a secret. Here’s exactly how we build ours.
The formula behind a real cash offer
It starts with the after-repair value (ARV) — what the home would sell for fully fixed up, based on recent comparable sales in your Springfield or Hampden County neighborhood. From there we subtract:
- Repair costs — what it’ll take to get the house to that fixed-up condition.
- Selling and holding costs — taxes, insurance, utilities, and resale costs while we own it.
- A modest margin — the profit that makes it a business, not a charity. On a fair deal this is reasonable, not greedy.
ARV minus those three things is your offer. When a buyer explains it this way, you can check the logic yourself.
What moves the number up or down
Condition is the biggest factor — a house that needs a roof, systems, and a full interior costs more to fix, so the offer is lower. Location and recent nearby sales set the ceiling. A clean title and a straightforward closing help too.
Why “lower than retail” can still be the smarter number
Compare it honestly to a traditional sale: subtract 5–6% agent commission, the repairs a retail buyer’s inspector will demand, and several months of mortgage, taxes, and utilities while it sits. For a house that needs work, the cash net is often much closer to the listed net than sellers expect — with none of the uncertainty.
We’re glad to walk you through the numbers on your specific house so you can see the math for yourself.
(413) 288-4889