A lot of homeowners tell us the most frustrating thing about calling “we buy houses” companies is that the offer feels like it comes out of thin air. You get a number, but no explanation. We do it differently. Your offer is not a mystery, and on this page we will show you the exact formula behind it so you can judge for yourself whether it is fair.
The formula
Here is the whole thing, no black box:
Offer = After-Repair Value − Repair Costs − Our Selling/Holding Costs − Our Profit
Let’s take each piece in turn.
After-Repair Value (ARV)
This is what your house would realistically sell for, fully fixed up, based on recent sales of comparable, updated homes in your area. It is grounded in actual Upstate market data, not a guess. The ARV is the ceiling that everything else is subtracted from, which is why an honest ARV matters so much.
Repair Costs
This is what it will actually take to bring the home to that after-repair value - roof, HVAC, kitchen, baths, flooring, foundation, and so on. We estimate this the way a contractor would, because we are the ones paying for it after we buy. The more work a home needs, the larger this number.
Our Selling and Holding Costs
Even a cash buyer has real costs: closing costs, title and attorney fees, property taxes and insurance while we own it, utilities, and the agent commissions and closing costs to sell it again once it is fixed. These typically add up to roughly 10% of the ARV. They are genuine expenses, not padding.
Our Profit
We are a business, so we do build in a profit - but a reasonable one, because we make our living on doing many fair deals, not on squeezing any single seller. Being transparent about this is the point: you can see it, and you can weigh it.
A worked example
Here is an illustrative example with round numbers to show how it fits together (your actual numbers will differ):
- After-Repair Value (ARV): $300,000
- Repairs needed: − $60,000
- Our selling/holding costs (about 10% of ARV): − $30,000
- Our profit: − $30,000
- Your cash offer: about $180,000
If that same house needed only $20,000 in repairs instead of $60,000, the offer would rise accordingly - roughly $220,000 - because there is less cost to subtract. That is why condition drives the number so much.
Why the offer is below full retail (and when it still wins)
A cash offer is not the same as the full retail price you might eventually get by listing, fixing everything, and waiting for the right financed buyer. What you are trading that difference for is real: no repairs, no agent commissions, no showings, no financing that falls through, and a fast, certain closing on your schedule. For many sellers - especially those facing foreclosure, a tax sale, an inherited home, or a house that needs major work - that certainty is worth more than chasing the last dollar. If it is not right for you, we will say so.
See how the two paths compare in our guide on cash offer vs. selling with an agent, and how the whole process works on our How It Works page.
We are a local, family-run company buying across Greenville, Spartanburg, Anderson, and Pickens counties, and we will always show you the math. Reach out for a free, no-pressure offer.