Every honest cash offer follows one formula: After-Repair Value minus repair costs minus the buyer’s margin equals your offer. If you know these three numbers you can evaluate any offer in minutes.
KEY FACTS FROM THIS GUIDE
- A written cash offer should show comps, repair estimate and margin, every time
- All closings run through licensed title companies (OH, TX) or closing attorneys (GA)
- Never sign a deed outside a closing; never pay a fee to sell your house
- Primary-residence gains up to $250,000/$500,000 are usually tax-free (IRC 121)
After-Repair Value: what the fixed house sells for
The starting point is comparable sales: renovated houses of similar size within about a mile that sold in the last 90 to 180 days. Example: three comparable renovated sales in your Columbus neighborhood at $210,000, $218,000 and $225,000 put your ARV around $215,000. Ask any buyer to show you their comparables; we include them in every written offer.
Repair costs: honest line items, not scare numbers
A real repair estimate lists items: roof $9,000, HVAC $6,500, flooring and paint $12,000, kitchen $15,000. Vague repair budgets padded to justify a low offer are a red flag. Contractors overrun, so estimates include a contingency, but every line should be explainable.
A written offer costs nothing and decides nothing yet. Written numbers, licensed title company closings, zero pressure.
The margin: yes, the buyer makes money
Cash buyers carry the renovation risk, the holding costs and the resale risk, and typically target 10 to 20 percent of ARV. On a $215,000 ARV with $42,000 of repairs and a $32,000 margin, the offer lands near $141,000. You can decide whether the certainty and speed are worth the difference; the point is that nothing is hidden.
Why two honest buyers can offer different prices
Different repair estimates, different local crews, different margin targets. Getting two written offers with the math shown is completely reasonable, and we encourage it. What matters is that both show their numbers.
Get a free written cash offer here, or book a free consultation if you want to talk it through with a real person first.