How a Cash Offer Is Calculated
It starts with what the house would sell for once repaired, then subtracts the work it needs and the cost to own and resell it. Here is each step, with an example.
- Close in 7–14 days
- We pay all closing costs
- Sell as-is, no repairs
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A cash offer starts from the price the house should bring once it is repaired, not from its value as it stands. A buyer who will fix the house and sell it again works backward from that price. Each step below is a cost that comes out of it before the offer is reached.
The calculation, step by step
- Start with the after-repair value. This is what the house would likely sell for once repaired, judged from recent sales of similar houses nearby that were in good condition. Investors call it the ARV.
- Subtract the repairs. The cost to bring the house up to the condition of those sales: roof, foundation, heating and air, plumbing, electrical, and finishes such as floors, paint and the kitchen.
- Subtract the holding costs. While the work is done and the house is resold, someone pays the property taxes, insurance, utilities, upkeep and the cost of the money tied up in the house. The longer the repairs and the resale take, the larger this step gets.
- Subtract the costs of buying and reselling. When we buy, we pay all closing costs. When the repaired house sells again, that sale has its own agent commissions and seller closing costs.
- Subtract the profit. What remains has to leave room for our profit, which pays for the risk: repairs that run over budget, a resale that takes longer than planned, or a market that softens.
What is left is the offer. Your loan payoff, any liens and past-due property taxes are not part of this calculation. They are paid from the price at closing either way, whether you sell to us or list with an agent, and your share of this year's property taxes is prorated at closing (TREC form 20-19, paragraph 13).
What we look at
Condition
The roof, foundation, heating and air, plumbing and electrical, and any water or fire damage. These drive the repair estimate more than anything else. Photos help us give you a more accurate offer.
Recent sales of similar houses
Closed sales of nearby houses that are similar in size, age and layout. A closed sale shows what a buyer paid; an active listing shows only what an owner is asking. No two houses match exactly, so differences such as an extra bedroom, a garage or a larger lot matter.
Title and what is owed on the house
Before closing, the title company searches the county records. Liens, judgments, unpaid property taxes, an owner who died before the estate was settled, or a divorce that left both names on the deed can all turn up. Some of these are simply paid from the price at closing. Others take time to clear before the title company can close, and that time is a holding cost too. If the house came through an estate, see selling an inherited house in Texas.
Why a cash offer is lower than a list price
A cash offer has to cover every cost in the steps above, so it is usually below what the same house would bring once repaired and listed on the open market. For a house in good condition with time to sell, a listing often nets more.
In exchange for the lower price, a cash sale to us gives you this:
- Sell as-is, no repairs.
- No agent commissions.
- We pay all closing costs. That covers the title company's escrow fee, the owner's title policy and the recording fees.
- Close in 7–14 days once title is clear.
- Free, no obligation. You can compare the offer and say no.
A listing has costs of its own. Under the Texas resale contract, TREC form 20-19, a buyer who accepts the house as-is can still inspect it and negotiate repairs (paragraph 7D). Brokerage compensation is not set by law and is fully negotiable (paragraph 12B). The seller pays expenses such as lien releases, tax certificates, deed preparation and half of the escrow fee (paragraph 12A), and the contract has a box for who pays the owner's title policy (paragraph 6A); the Texas Department of Insurance says the buyer and seller may negotiate it. Texas homes sold in July 2026 spent an average of 63 days on the market, according to the Texas Real Estate Research Center at Texas A&M University.
Illustrative example, not an offer
The numbers below are round figures chosen only to illustrate the steps. They are not market averages, not our costs and not an offer on any house. Your house, its condition and the sales near it decide the real figures.
| Step | Amount |
|---|---|
| After-repair value: what similar repaired houses nearby sold for | $300,000 |
| Minus repairs: roof, heating and air, kitchen, floors and paint | −$45,000 |
| Minus holding costs while the house is repaired and resold | −$12,000 |
| Minus buying and resale costs: the closing costs we pay when we buy, plus commissions and closing costs on the resale | −$25,000 |
| Left before profit | $218,000 |
The offer is what remains after profit comes out of the $218,000. How large that share is depends on the risk in the house: the size of the repairs, how certain the after-repair value is, and how long the resale may take.
The same house listed after repairs would carry commissions, closing costs, repair bills and months of holding costs as well. The difference is who pays them. To see both routes with your own numbers, use the calculators below.
How to compare our offer with listing
- Find a realistic list price: recent closed sales of similar houses nearby, or a listing agent's estimate. Not active listings.
- Open the net proceeds calculator. Enter that price, the commission in your listing agreement, written repair bids, a title company's quote for your closing costs and the months you expect until a listed sale closes.
- Add up what the house costs you each month with the holding cost calculator.
- Enter the cash offer you received. The calculator compares an offer you already have; it never estimates one.
- Weigh the two nets against everything else that matters to you: repairs you would manage, a buyer's loan approval, and time.
If listing comes out ahead and you have the time, see the three ways to sell your Texas house, including listing with an agent.
When the number can change
The first figure we share is based on what we know at that point: photos, the county records we can see, and recent sales nearby. After we walk the house, or after the title company finds something that was not in the public records we already saw, the figure can change. We tell you what changed and why before you decide.
Who signs the contract
Cash Home Advisors, LLC signs the purchase contract with you and buys as a principal. It is not acting as your agent, lender or advisor. We may buy your home ourselves or with a partner investor, and we tell you which before you sign. Every sale closes at a Texas title company on a standard TREC contract. From your address to closing day, see how it works.
Asking for an offer is free, no obligation, and a real person calls you back, in English or Spanish. Get your cash offer or call (817) 520-8319.
Sources
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