How we calculate our cash offers

Our Offer Process

Our offers are based on the After Repaired Value (ARV) of your property. This approach allows us to make a fair and competitive offer, ensuring that we can cover all necessary costs, meet our reasonable profit margin, and—most importantly—provide you with a cash offer that meets your needs. Below, we break down exactly how we calculate each offer.

The Formula:

[Your Offer] = [After Repair Value] – [Cost of Repairs] – [Selling Costs] – [Minimum Profit Margin]

Each element of this calculation is essential to ensuring a fair transaction for both parties. Here’s how each component contributes to the final offer:

1) Determining the After Repair Value (ARV)

The After Repair Value (ARV) represents the estimated market value of your house once fully renovated, updated, and in “move-in ready” condition according to current market standards. In simple terms, this is what your home could sell for if it were in top shape—freshly renovated, clean, and attractively decorated. Since your offer is based on this potential market value, we can ensure you receive an offer that reflects your home's maximum possible worth.

2) Calculating the Cost of Repairs

The cost of repairs represents the expenses we’ll incur to bring your house up to its maximum value. These include necessary renovations, cosmetic updates, and specific high-value improvements like modernizing the kitchen, adding bathrooms, or upgrading bedrooms. Because of our expertise and network of contractors, we can complete these renovations at a competitive rate. This enables us to offer you more cash upfront, even while taking on the responsibility of the renovations after the purchase. By partnering with skilled, cost-efficient professionals, we enhance your property’s appeal and ensure it meets market expectations—without you having to manage or invest in any repairs yourself.

3) Determining Our Selling Costs

Selling costs encompass the expenses involved in selling the property on the open market. While we buy directly from homeowners, we work with a professional real estate agent from our team to secure top market value once the renovations are complete. This process incurs typical costs, such as closing fees, agent commissions, and relevant taxes, all of which are factored into our calculations to ensure our offer is financially sustainable. However, you are not responsible for any of these costs; our team manages them as part of our business process.

4) Factoring in Our Profit Margin

Our profit margin is modest—typically between 5-10%. This percentage reflects the expertise and experience we bring to managing large-scale renovations. Unlike inexperienced investors, our team can confidently execute these projects to maximize value and generate returns. This profit margin enables us to keep our business thriving, support our network of contractors, and continue offering competitive cash prices to homeowners. Without this margin, we wouldn’t be able to operate sustainably, so we ensure that our offers balance both profitability and value for our sellers.

Putting It All Together

In summary, your cash offer is calculated as the potential market value of your house in fully renovated condition, minus the costs required to bring it to this standard, our selling costs, and a reasonable profit margin. This straightforward formula allows us to make fair, competitive offers, letting you receive cash quickly and walk away without the burdens of renovation or property market sales.