The Offer Workshop

How we calculate your cash offer

A real offer isn't a random number. Here's the framework we use — and why we show it to you instead of hiding it.

The simple version

A direct cash offer starts from what the home would be worth fully repaired and updated — its after-repair value (ARV). From there, we subtract the cost and risk of getting it there:

After-repair value (ARV)What the home would sell for fully renovated, based on comparable sales.

– Repairs & updatesRoof, systems, cosmetics — the work needed to reach that value.

– Transaction & holding costsClosing costs, taxes, insurance, and utilities while we own it.

– Resale costsCosts to sell it again after improvement.

– Risk & reasonable marginThe uncertainty we take on, and a fair return for doing so.

= Your cash offerThe number we can pay today, as-is, with no repairs or showings for you.

This is why a cash offer is usually below full retail: you're exchanging some potential price for speed, certainty, and not having to do — or pay for — any of the work or risk yourself. When that tradeoff isn't worth it for you, a listing may net more, and we'll say so.

The actual numbers

The formula, published

Most buyers describe their offer in adjectives. Here is ours in arithmetic — the same framework our estimator tool uses.

low  = value × 0.65 − (repair estimate × 0.5)
high = value × 0.78 − (repair estimate × 0.3)

A worked example. Say your home would be worth about $210,000 and it needs roughly $35,000 of work — a dated kitchen and bath, a roof near the end of its life:

Low: $210,000 × 0.65 − ($35,000 × 0.5) = $119,000
High: $210,000 × 0.78 − ($35,000 × 0.3) = $153,000

So the working range is $119,000–$153,000, and the walkthrough determines where in that band the final written offer lands. Repairs weigh on the low end harder than the high end on purpose — a real repair list pulls the conservative number down faster than the optimistic one.

Two honest footnotes. First, industry surveys of “we buy houses” companies commonly put cash offers anywhere from 50% to 70% of value — our band deliberately starts at the top of that range and goes above it. Second, if the formula produces a number that isn't genuinely competitive for your property, we'll tell you a listing is the better path. The formula is how we stay honest; the comparison is how you stay in control.

Try it yourself with our cash offer estimator, or check what each path nets you with the seller net calculator.

What we review

Everything that shapes your number

We walk through each of these with you so the offer is explainable, not arbitrary.

Estimated resale or market value
Property condition
Repairs needed
Holding costs
Transaction costs
Risk
Your priorities
Likely net proceeds
Selling alternatives

Watch: how the number comes together

A short walkthrough of a real offer calculation — coming soon. In the meantime, ask us to walk you through your own numbers on a call.

Get my offer breakdown

How we calculate your offer

Video placeholder — real footage will be added here.

ARV & comps
Repair scope
Holding & resale costs
Risk & margin

See how your offer is calculated

Get a written cash offer, see how it was calculated, and compare it with your other paths. No pressure, no obligation.

Or call a local Indiana home buyer: (317) 555-0187