How Cash Home Offers Are Calculated

The components

• Estimated resale value after renovation, from recent comparable sales of finished homes nearby.
• Expected repairs, estimated by scope rather than a flat per-square-foot guess.
• Buying and selling costs on both transactions.
• Holding and financing costs over the renovation and resale period.
• Market and property risk, which increases with unknowns and limited access.
• The buyer's required margin.

Where buyers differ

Two buyers looking at the same house can differ by tens of thousands because of the resale comparables they choose, the repair scope they assume, and the margin they require. Ask any buyer to show you all three.

What an offer is not

An offer is not an appraisal, a market valuation, or a statement of what your house is worth on the open market. It is what one buyer will pay today, in cash, with no contingencies.