Cash buyers pay below retail. Every one of us. The honest question is how much below, and why. This page is the answer.
412 S 8th Street, South Side, 15203. A three-bed rowhome, ~1,400 sq ft, original 1920s house, last renovated in the early 90s. Roof past its life. Kitchen and bath need full remodels. Foundation sound, electrical updated, no known issues otherwise. Owner-occupied, owner is relocating for work, wants to close in 30 days.
Comps in the block: three sold in the last 90 days, all renovated, average $245k. That sets the after-repair value.
From there, the math runs down to a cash offer of $164,200. Here's every line.
Numbers shown are illustrative. Your actual offer is based on the property you submit through the form.
The price your house would sell for after a full renovation — kitchen, bath, paint, flooring, finishes — staged and listed at retail with a Realtor. We find it by pulling the last 90 days of sold comps within a half-mile of your address, filtered to comparable beds, baths, and square footage. Listings don't count. Pending doesn't count. Only what actually closed.
If your block has had no comps in 90 days, we widen the radius and adjust for neighborhood. If there are no comps at all, we say so on the offer and explain how we estimated.
What it costs us to do the renovation. Itemized by system — kitchen, bath, roof, HVAC, electrical, plumbing, flooring, paint, exterior. The estimate is conservative; we'd rather over-budget and have margin left over than under-budget and lose money on the deal.
If you've recently updated something (new roof in the last 5 years, kitchen redone last year), the form asks — and we subtract that scope from the estimate. That's why "Recently updated" on the form is one of the most valuable answers you can give us. The less rehab on our side, the higher your offer.
From the day we close to the day the renovated house sells, we're paying property taxes, insurance, utilities, and (if we borrowed against the deal) interest. Most of our renovations finish in 60 to 90 days, plus 30 to 60 days on the market. We budget four months of holding on a typical deal; faster if it's lighter rehab.
Title insurance, recording fees, deed prep, transfer tax (Pennsylvania splits this 50/50 in most counties), and the title company's fees. Both sides of the table — we pay yours too. You don't see a single line item charged back to you at closing.
What we need to make on the deal to keep the business running. It covers labor coordination, capital risk (we eat the loss if the rehab runs over or the market turns), the cost of all the deals we look at and don't close. Typically 10–15% of ARV depending on the project's risk profile.
We don't apologize for the margin — it's how we stay solvent enough to close on the next house. But we show it on the offer because hiding it is what makes the category feel slimy. You should see exactly what we're making.
ARV minus rehab minus holding minus closing minus margin. That's the number on the offer. We round to the nearest $100. It's what hits your account at closing, minus your mortgage payoff and any liens or back taxes that the title company resolves directly with the lien holder.
If the math doesn't work — if rehab eats too much, or comps are weak — the offer will be a number we expect you to decline. We send it anyway, with the math, so you can see exactly why your house doesn't pencil as a flip right now. No drama, no chase.
If your house is in good condition, you have at least six months, and you're willing to deal with showings — a traditional listing with a Realtor will almost certainly net you more money. Even after paying their commission. Cash offers are not for everyone.
The cash offer makes sense when at least one of these is true:
If none of those apply, list with a Realtor. If you're not sure, submit your address — we'll tell you in the offer email whether we think a Realtor would net you more.
Every offer email includes the worksheet. Comps, rehab, holding, closing, margin — line by line. If a number doesn't make sense to you, ask. We'll explain by reply.
Enter your address. We'll send a real offer in 24 hours, with the worksheet behind it.
No phone calls. No pressure. We respond by email within 24 hours.