How We Calculate Your Cash Offer

No black box. Here is the formula we use, a worked example with real-looking numbers, and an honest look at what the same house might net if you listed it instead.

The short version

Our cash offer starts with what your home would sell for fully repaired, called the after-repair value. From that we subtract three things: the cost of the repairs it needs, our costs to buy, hold, and resell it, and the margin we need to stay in business. We show you each number before you decide anything.

Last updated October 8, 2026 · Written and reviewed by the Direct Home Buyers USA acquisitions team

The four numbers in every offer

1
After-repair value (ARV)

What your home would sell for in move-in-ready condition. We pull recent sales of similar homes in your neighborhood, not county-wide averages, and adjust for square footage, lot, age, pool, and finishes. If you have a recent appraisal or comparable sales you think are stronger, send them. We will use them if they hold up.

2
Repair and update costs

What it would cost to bring the home to the condition those comparable sales were in. We use current Arizona contractor pricing, not inflated estimates. Big-ticket items in our market are roofs, air conditioning systems, foundations, plumbing in older homes, and anything the monsoons have gotten into. If the house only needs paint and carpet, the number is small and the offer is higher.

3
Transaction and holding costs

The costs of buying the home, owning it while work is done, and reselling it. That includes title and escrow on both ends, property taxes, insurance, utilities, and the agent commission we pay when we resell. These costs are real whether we or you absorb them. When you sell to us, we absorb them.

4
Our margin

We are a business and we take on the risk of the repairs running over and the market moving while we hold the home. The margin is what makes that risk worth taking. It is not hidden in the other numbers, and we will tell you roughly what it is for your home if you ask.

A worked example

Illustrative numbers for a typical Phoenix-area home that needs meaningful work. This is not a quote. Your offer uses your home's actual comparable sales and repair list, and we walk you through both.

After-repair value
What similar, updated homes nearby have sold for
$400,000
Repairs and updates
Roof, AC replacement, flooring, paint, kitchen refresh
− $45,000
Buying, holding, and resale costs
Title and escrow twice, taxes, insurance, utilities, resale commission
− $30,000
Our margin
Covers repair overruns and market risk while we hold the home
− $40,000
Cash offer to you
$285,000

You pay nothing at closing. This is the amount wired to you, typically within 7 to 30 days of accepting.

What the same house might net if you listed it

For a fair comparison, here is a rough picture of listing the same home after doing the repairs yourself. Percentages are typical ranges, not fixed rates.

Sale price after repairs
$400,000
Repairs you pay for up front
Paid before listing, out of your pocket or a loan
− $45,000
Agent commissions
About 5 to 6% of the sale price
− $22,000
Seller closing costs and concessions
About 1 to 3%, often more in a buyer's market
− $8,000
Carrying costs while you wait
Mortgage, taxes, insurance, utilities for roughly 3 to 4 months
− $8,000
Estimated net to you
≈ $317,000

Assumes the repairs come in on budget, the home appraises, and the buyer's financing closes. Timeline is typically 3 to 5 months from first repair to funded sale.

The honest takeaway: in this example, listing could net roughly $30,000 more, three to five months later, with $45,000 of your own money at risk up front. The cash offer trades that upside for speed, certainty, and zero out-of-pocket cost. If your home is in good shape and you can wait, listing is often the better financial choice, and we will tell you that. If the repairs, the timeline, or the uncertainty are the problem, the cash offer usually wins. Our cash offer vs. listing vs. iBuyer comparison goes deeper.

What moves the number

Raises the offer
  • A newer roof or AC system with records
  • Strong recent comparable sales on your street
  • A clean title with no liens to clear
  • Flexibility on the closing date
  • A home that only needs cosmetic work
Lowers the offer
  • Foundation, structural, or roof-deck problems
  • Unpermitted additions that have to be corrected
  • Active water, mold, or termite damage
  • Tenants in place with unclear lease status
  • Liens, code violations, or back taxes we have to clear

What we do not do

  • No bait-and-cut. We do not quote a high number to get a contract and then drop it the week of closing.
  • No fees. No service fee, no commission, no closing costs. The offer is what you receive.
  • No assignment. We buy with our own capital. Your contract is not shopped to other investors.
  • No pressure. The offer is good for a reasonable window and you can say no without a follow-up campaign.
Common Questions

Questions About How We Price

Is the cash offer negotiable?+
Yes. If you have information that changes one of the inputs, such as a recent roof replacement or a comparable sale we missed, tell us and we will rerun the numbers. What we will not do is quote a high number to get a signature and then cut it before closing.
Why is a cash offer below what a listing might bring?+
Because we take on the repairs, the holding costs, the resale risk, and the time. A listing price assumes a repaired home, a buyer whose financing closes, and three to five months of carrying costs. The gap between the two is what you pay for speed, certainty, and zero out-of-pocket cost. For homes in good condition with owners who can wait, listing often nets more, and we say so.
Will the offer change after you see the house?+
Only if the condition is materially different from what we were told, for example a foundation problem or a roof that was described as new but is not. We look at the house before the written offer whenever possible so that the number you see is the number you close on.
Do you charge for the evaluation or the offer?+
No. The evaluation, the written offer, and the walkthrough are free, and there is no obligation to accept.
What does 'after-repair value' mean?+
After-repair value, or ARV, is what your home would sell for on the open market in fully repaired, move-in-ready condition. We estimate it from recent sales of similar homes in your neighborhood, adjusted for size, lot, age, and finishes.
How fast can I get a number?+
Usually within 24 hours of your first call or form submission, and often the same day. If we need to see the property first, we schedule the visit around you.

See Your Actual Numbers

Tell us about the house and we will run the formula on it. Free, no obligation, within 24 hours.

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