How We Calculate Your Cash Offer

We explain the comparable sales, repair assumptions and costs behind an offer so you can compare your options with confidence. Every property is different; no single percentage produces every offer.

The full calculation

Maximum Purchase Price = Expected Resale Value − Repairs − Buying and Closing Costs − Holding Costs − Resale Costs − Financing Costs − Required Profit and Risk Margin.

We estimate after-repair value (ARV) from relevant comparable sales and the property’s characteristics. We then estimate the work required and the costs and risks of buying, holding and reselling it. We will explain the assumptions used for your house.

A simpler starting framework

For an initial discussion, we may use (estimated ARV × a selected investment factor) − estimated repairs. The investment factor is typically 70–80% of estimated ARV, depending on the property, market conditions, transaction and financing costs, holding period and risk. It is a starting range, not a guaranteed formula or an offer for every house. The factor is intended to account for the other costs and required margin in the full calculation above.

Illustrative example

If a McKinney house has an estimated ARV of $400,000 and estimated repairs of $45,000, a 75% starting factor gives $400,000 × 75% − $45,000 = $255,000 as an illustrative starting maximum. The actual offer could differ after we review the property and its specific costs and risks.

Illustrative framework only. Actual offers vary based on property condition, required repairs, market value, location, acquisition, financing, holding and resale costs, title condition, market risk and other property-specific factors. Existing mortgages, liens, delinquent taxes and other obligations may affect the seller’s net proceeds at closing. No offer is guaranteed until the property and relevant information have been reviewed.

Offer amount versus what you receive

The purchase price is distinct from your net proceeds. At closing, a Texas title company provides a settlement statement showing applicable mortgage payoff, liens, delinquent taxes and other seller obligations. We explain what we expect to pay in the transaction and what may affect the amount you receive. Timing also depends on the property’s title and the closing process.

Compare your options

A direct sale can fit when you value an as-is sale and fewer preparations. Listing with an agent may produce a better financial outcome when you have time and the property is market-ready. If listing appears to fit your goals better, we will say so and may connect you with a licensed local agent.

Ready to review the numbers for your house? Tell us about your property or call 469-699-4316.