What Is My House Worth to a Cash Home Buyer?
What Is My House Worth to a Cash Home Buyer?
How cash buyers calculate offers, what factors matter, and why the price may be different from your Zestimate or what your neighbor sold for.
The Honest Answer: 70-85% of After-Repair Value
Cash offers from professional home buyers like Homeinc are typically 70-85% of the after-repair value (ARV) of your home. After-repair value is what your home would be worth if it were fully renovated and listed on the open market in perfect condition.
So if your home would sell for $300,000 fully renovated on the MLS, a cash offer would typically be between $210,000 (70% of ARV) and $255,000 (85% of ARV), depending on the home current condition, the repairs needed, and our holding costs.
How We Actually Calculate Your Offer
Our offer is not a random number. It is calculated using a specific formula that ensures we can repair your home, resell it, and cover our costs while still leaving you with a fair price. The formula:
Component 1: After-Repair Value (ARV)
We start by determining what your home would be worth fully renovated. We pull comparable sales (comps) from your immediate neighborhood — typically homes within a half-mile that sold in the last 6 months, similar in square footage, bedrooms, and lot size, and that were in good condition at the time of sale.
If three similar fully-renovated homes recently sold at $295K, $305K, and $310K, your ARV is approximately $300K. We use the same methodology a real estate agent would use for a comparative market analysis (CMA).
Component 2: Repair Costs
We estimate what it will cost to bring your home up to current market standards. This typically includes:
- Roof replacement if older than 15 years ($8K-$25K)
- Kitchen update or remodel ($10K-$50K)
- Bathroom updates ($5K-$15K per bathroom)
- Flooring replacement ($5K-$15K)
- Paint inside and out ($3K-$10K)
- HVAC if older than 12 years ($5K-$8K)
- Plumbing/electrical updates if needed
- Landscaping cleanup
- Code violation remediation
- Hurricane or storm damage repair
- Mold remediation
- Permit fees
For an average home, total repair budget runs $20K-$60K. For homes needing major renovation, it can exceed $100K.
Component 3: Holding Costs
While we own the property, we pay carrying costs: property taxes, insurance, utilities, HOA fees, lawn maintenance. These typically run $500-$2,000 per month. Multiply by the months we will hold it (usually 3-6 months for repairs plus sales time) and you get $1,500-$12,000 in holding costs.
We also pay the costs of selling: agent commission on the eventual resale (5-6%), closing costs (1-3%), and title work.
Component 4: Profit Margin
We are a business. We need to make money on each transaction to stay in business and provide the speed and certainty you are paying for. Our target margin per deal is 10-15% of ARV.
A Real Example
Let’s walk through a real example. Suppose your home would be worth $300,000 fully renovated:
| Calculation | Amount |
|---|---|
| After-Repair Value (ARV) | $300,000 |
| Repair budget (kitchen, bath, paint, flooring) | -$35,000 |
| Holding costs (4 months) | -$5,000 |
| Closing & selling costs (8% of ARV) | -$24,000 |
| Profit margin (12% of ARV) | -$36,000 |
| Our cash offer | $200,000 |
In this example, the offer is 67% of ARV. For homes in better condition that need less work, the offer can reach 80-85% of ARV.
Why Our Offer May Differ from Your Zestimate or Public Records
- Zestimate is not adjusted for condition. It assumes your home is in average condition. If your home needs work, Zestimate is too high.
- Zestimate uses outdated comps. It can include comparable sales from 12+ months ago.
- Public tax assessment is not market value. County tax appraisals are typically 70-90% of true market value and are updated yearly, not real-time.
- Your neighbor sold a renovated home. If your neighbor recently sold for $X, theirs was likely in different condition than yours.
- The market may have shifted. Real estate values move quickly. Six months ago is not today.
What Makes a Higher Cash Offer Possible
- Home needs less work. Fewer repairs = higher offer percentage of ARV.
- Strong neighborhood. High-demand areas where we can resell quickly = less holding cost = higher offer.
- Recent comparable sales are strong. If similar homes have been selling at the top of the range, that boosts your ARV.
- You are flexible on closing timeline. If we can take time to underwrite carefully, we sometimes find ways to offer more.
- Property is clean and accessible. Easy to visit, easy to evaluate = stronger offer.
The Honest Comparison: Cash vs Listing With an Agent
Many sellers ask: “Wouldn’t I make more by listing with an agent?” Sometimes yes, sometimes no. Here is the honest comparison for our $300K ARV example:
| Scenario | Net to You |
|---|---|
| List as-is at $230K (typical as-is price) | $230K − $14K (agent) − $5K (closing) − $8K (holding 3mo) = $203K |
| Repair yourself, list at $300K | $300K − $35K (repairs) − $18K (agent) − $7K (closing) − $10K (holding) = $230K |
| Sell to Homeinc | $200K (no agent, no closing costs, no repairs, no holding) |
In this example, repair-and-list yields the highest net, but requires $35K out of pocket, 4-6 months of work, and accepting the risk that the repair budget runs over and the deal could fall through. Sell-to-cash-buyer yields $30K less but is fast, certain, and risk-free.
Get Your Specific Offer
The only way to know what your specific home is worth to a cash buyer is to get an actual offer. Our offer is free and no-obligation. We will walk you through the math.
Related Resources
- Cash Offer vs Market Value: The Real Math
- The Hidden Costs of Selling Through a Real Estate Agent
- Commission Savings Calculator
- Our Process and Pricing Transparency
Find Out What Your Home Is Worth to Us
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Last reviewed and updated for 2026 market conditions. Homeinc’s cash offer process, closing timelines, and no-fee guarantee remain the same. Call (888) 850-2636 for a fresh cash offer today.