How Much Do Cash Home Buyers Actually Pay?
There's No Single Number — But There Is a Formula
It's the first question almost every homeowner asks before picking up the phone: "How much will you actually pay for my house?" It's a fair question, and the honest answer is that it depends — on condition, location, comparable sales, and how much work the property needs. But "it depends" isn't a satisfying answer, so this guide breaks down exactly how cash offers are calculated, what percentage of market value to expect, and how the real numbers compare to a traditional listing once every cost is accounted for.
Expect 70–85% of Fair Market Value
Most reputable cash buyers, us included, offer somewhere between 70% and 85% of a home's fair market value. Where a property lands in that range depends mostly on condition: a home that's move-in ready with only cosmetic issues will land toward the higher end, while a property needing a new roof, foundation work, or a full interior gut will land closer to 70%.
That percentage covers the repair costs we'll take on, the holding costs and resale risk we're absorbing, and our margin for buying without an inspection contingency or financing fallout. It's not an arbitrary discount — it's the cost of certainty.
💡 A cash offer isn't measured against your home's top-dollar retail price alone. It should be measured against what you'd actually walk away with after commissions, repairs, and months of carrying costs on a traditional sale.
How We Actually Calculate an Offer
There's no black box here. Every offer we make follows the same basic math:
- After Repair Value (ARV): What the home would sell for on the open market once it's fully repaired and updated, based on recent comparable sales in the immediate area — not a Zillow estimate.
- Subtract estimated repair costs: Roof, HVAC, foundation, cosmetic updates — whatever it would take to bring the property to market-ready condition.
- Subtract holding and selling costs: Property taxes, insurance, utilities, and closing costs we'll carry until the home resells.
- Subtract our minimum margin: The smallest amount we need to make the deal work as a business, not the maximum we could get away with.
What's left after those four steps is the cash offer you receive — usually within 24 hours of us seeing the property or a few clear photos and a condition rundown.
Factors that move the number up
Good bones, a functional roof and HVAC, no foundation issues, a desirable neighborhood, and clean title all push an offer toward the higher end of the range.
Factors that move the number down
Structural repairs, code violations, extensive deferred maintenance, title complications, or a property that's sat vacant and deteriorating all increase our risk — and lower the number.
Cash Offer vs. Listing: The Real Net Comparison
Here's what a $250,000 fair-market-value home actually nets the seller under each path, assuming the home needs roughly $20,000 in repairs to be market-ready:
| Traditional Listing | Royal Groups Realty Cash Offer | |
|---|---|---|
| Sale price | $250,000 | $190,000 |
| Repairs before listing | −$20,000 | $0 |
| Agent commissions (~6%) | −$15,000 | $0 |
| Closing costs | −$5,000 | $0 |
| Carrying costs (3–6 months on market) | −$6,000 | $0 |
| Estimated net to seller | $204,000 | $190,000 |
| Time to close | 60–120+ days | 7–28 days |
The gap narrows fast once repairs, commissions, and carrying costs come off the top — and that's before factoring in financing fallout, buyer-requested repairs after inspection, or a sale that drags on longer than expected. For homes needing significant work, the numbers often land even closer together, or favor the cash sale outright.
Why Sellers Choose Royal Groups Realty
What the Offer Number Doesn't Show You
Zero Repair Costs
Whatever the offer is, it's the number you receive. No inspection-driven renegotiation after the fact.
Zero Commissions or Fees
No listing agent, no buyer's agent commission, no hidden closing fees eating into the number.
Fewer Months of Carrying Costs
Every month a home sits on the market costs taxes, insurance, and utilities. A fast close stops that clock.
No Financing Risk
Cash means the deal doesn't fall through 30 days in because a buyer's loan got denied.
When the Math Favors a Cash Sale Most
The gap between a cash offer and a retail sale narrows — or disappears entirely — in certain situations. These related guides cover the specifics:
Frequently Asked Questions
Most reputable cash buyers offer somewhere between 70% and 85% of a home's fair market value, depending on condition, location, and how much work the property needs. Homes in good condition tend to land toward the higher end of that range.
The offer accounts for repairs, holding costs, resale risk, and the fact that the buyer is purchasing as-is with no financing contingency, no repair negotiations, and a guaranteed close. In exchange for certainty and speed, the price reflects those trade-offs.
Not necessarily. Once you subtract agent commissions, repair costs, staging, closing costs, and months of carrying costs from a retail sale, the net difference is often much smaller than the sticker price suggests. See our full comparison guide for the numbers.
We start with the After Repair Value based on recent comparable sales, subtract estimated repair costs, then subtract our minimum margin and holding/selling costs. What's left is the cash offer.
Yes. A cash offer is a starting point, not a final number. If you believe we've missed something about the property's condition or value, tell us — we regularly adjust offers based on new information.
No. There's no obligation. You can request a cash offer, review it, ask questions, and walk away at any point with zero cost or commitment.