August 12, 2026 · By Revival Home Solutions
Quick Answer
Most cash home buyers pay roughly 70–85% of a home's after-repair value, minus repair costs. But the "discount" is smaller than it looks once you account for the commissions, closing costs, and repairs you'd pay in a traditional sale. In many cases, the net amount you walk away with is within a few percent of what you'd clear listing with an agent — and you get it in weeks, not months.
Key Points
Every legitimate cash buyer uses some version of the same formula:
Your Offer = After-Repair Value − Cost of Repairs − Selling Costs − Minimum Profit
Here's each piece, in plain English:
After-repair value (ARV)
What the house would sell for fully fixed up, based on comparable sales in your neighborhood.
Cost of repairs
What it actually costs to fix it up. A buyer with a construction background gets real numbers — not inflated guesses.
Selling costs
What the buyer will spend to resell — agent commissions, closing costs, holding costs like taxes and insurance during the renovation.
Minimum profit
What the buyer needs to make to justify the risk and the work. A fair buyer is upfront about this number.
Say a similar house on your street just sold for $250,000 after a full remodel. Your house is the same layout but original — it needs a new kitchen, bathroom, and roof.
After-repair value: $250,000
− Repairs: $50,000
− Selling costs: $25,000
− Profit: $30,000
Your offer: $145,000
Now here's the part most people miss. If you listed that same house with an agent, you'd pay 5–6% commission, closing costs, and either the repair costs yourself or a reduced sale price. When you run the real numbers, the cash offer is often closer than the sticker price suggests. Want to see the full comparison? Read our guide on cash offer vs. listing with an agent.
A fair cash buyer will show you the math — the ARV, the repair estimate, the selling costs, and their profit. If a buyer won't explain how they got to their number, that's a red flag. A legitimate buyer wants you to understand the offer because an informed seller is more likely to accept it. We walk through the full formula on every offer. You can see exactly how the number is built before you sign anything. Learn more on our How It Works page.
Get a free, no-obligation cash offer with the full breakdown of how we got there.