How is my cash offer amount calculated?

A cash offer isn't a random number. It follows a fairly consistent formula that most experienced cash buyers use, built around what the home is worth today and what it will cost to get it to a resellable condition.

Quick Home Offers is a leading cash home buyer in Florida, and we walk every seller through exactly how their number was reached, no guessing required.

The basic formula

Cash Offer = ARV − Repair Costs − Buyer's Margin

ARV = after-repair value, what the home is worth once fully fixed up

Every part of that formula is grounded in real numbers pulled from the local market and the property itself, not a guess.

What goes into the number

1. Recent comparable sales

What similar, fully renovated homes nearby have actually sold for recently sets the ARV.

2. Repair and renovation costs

A realistic estimate of what it will cost to bring the home up to that fully renovated standard.

3. Holding costs

Property taxes, insurance, and utilities during the time it takes to repair and resell the home.

4. Selling costs

Closing costs and any commissions the buyer will pay when they eventually resell the property.

5. A reasonable margin

The buyer's profit for taking on the risk, time, and capital involved in the project.

Why is the number below market value

This is the trade-off at the center of every cash sale. You're not paying for repairs, waiting months for a buyer, or risking a financing fall-through, and in exchange, the offer reflects the cost and risk the buyer is absorbing on your behalf.

You can ask questions about the number

A fair cash buyer should be able to walk you through their reasoning, comparable sales, repair estimates, and all. If a buyer won't explain how they got to a number, that's worth being cautious about.

Common questions

What is ARV in a cash home offer?

ARV, or after-repair value, is what the property would be worth once fully repaired and updated to market condition.

Why is a cash offer usually below market value?

The offer accounts for repair costs, holding costs, and the risk the buyer takes on, in exchange for a fast, certain, as-is sale.

Can I negotiate a cash offer?

Yes. A cash offer is a starting point, and you can discuss the numbers behind it or ask questions before deciding.