The short version
- A cash offer is usually below what a fully repaired house sells for on the open market. That gap pays for repairs, costs and risk.
- The biggest number in the math is the after-repair value: what similar fixed-up houses nearby have actually sold for.
- We always show you the numbers behind our offer, so you can check them and compare.
- Once we both sign, we don't come back later asking for a lower price.
- If listing the house would leave you with more money, we'll tell you. Our calculator shows both numbers side by side.
What goes into a cash offer?
Five numbers: the after-repair value, minus repairs, minus buying and holding costs, minus selling costs, minus a margin for risk and profit.
| Step | What it means | Where the number comes from |
|---|---|---|
| After-repair value (ARV) | What the house should sell for once it's fixed up | Recent sales of similar, updated houses close by |
| Minus repairs | Everything needed to bring it up to that value | Our walkthrough, and contractor quotes for big items like roofs |
| Minus buying and holding costs | Closing costs, property taxes, insurance, utilities and loan costs while the work is done | Real costs for that house and that timeline |
| Minus selling costs | Agent commission and closing costs when we resell, or setup costs if we rent it | What those costs usually run in Tampa Bay |
| Minus margin | Pays for the risk that repairs cost more, the market drops, or the house takes longer | The part that makes the work worth doing |
Every buyer who pays cash and fixes houses uses some version of this math. The difference is whether they show it to you.
What does that look like with real numbers?
Here is the math on a made-up house, so you can see how each piece moves the offer. Every house is different.
| Item | Example amount |
|---|---|
| After-repair value | $320,000 |
| Repairs (roof, kitchen, floors, paint) | minus $48,000 |
| Buying and holding costs (about 5 months) | minus $14,000 |
| Selling costs when we resell | minus $22,000 |
| Margin for risk and profit | minus $28,000 |
| Cash offer | $208,000 |
In this example the offer is about 65% of the after-repair value. That can look low next to a fixed-up price. But the seller pays nothing for repairs, commissions or months of carrying costs, and can close on the date they pick. Whether that trade is worth it depends on your house and your plans, which is why we show you the numbers.
Want to know what we would pay?
Tell us about the house. Matan reviews it himself and calls you back.
What do we look at when we see the house?
The things that change the repair bill or the value: the roof, the structure, plumbing and electrical, water or storm damage, permits, and how the house compares to recent sales nearby.
- Roof and windows. Age and condition matter a lot in Florida, because insurers often won't cover an older roof.
- Structure and foundation. Cracks, settling, sinkhole history or termite damage.
- Plumbing, electrical and HVAC. Older pipe types and electrical panels can stop a buyer from getting insurance.
- Water, flood and storm damage. Including any substantial damage letter from the city or county. See our FEMA 50% rule guide.
- Permits and code cases. Open permits, unpermitted work and code liens. See selling with code violations.
- Comparable sales. What similar updated houses nearby actually sold for in the last few months, not list prices.
Why is a cash offer lower than market value?
Because the buyer takes on the repairs, the costs and the risk that a regular buyer would expect you to handle first.
A regular buyer with a mortgage usually needs a house that can pass an inspection, get insured and appraise. Getting a worn or damaged house there costs money and time, and someone has to pay for it. When you sell as-is for cash, that someone is the buyer, and the offer reflects it.
For a house in good shape, listing it with an agent usually leaves you with more money, and we'll say so. A cash sale tends to make the most sense when the house needs a lot of work, can't be insured or financed as it is, or when you need a sure closing date. Try both numbers in our cash offer vs. listing calculator.
Will you show me how you got to your number?
Yes, always. We walk you through the after-repair value, the repair estimate and our costs, so you can check them.
If you think we've missed something, like a recent sale we didn't count or a repair that's cheaper than we figured, tell us. We'd rather fix the number than lose your trust.
It's also a good test for any cash buyer. A buyer who plans to close usually can explain their math. One who plans to resell your contract to someone else may not have done the math at all. More on that in cash buyer or wholesaler.
Can the price change after I sign?
Not from us. Once we both sign, we close at that price.
Some buyers lower their price after an inspection, once the seller has stopped looking at other options. Matan has bought houses around Tampa Bay for years and closes on what he agrees to, even when the numbers turn against him after signing. Our earnest money goes to the title company the same day you sign (or the next business morning if you sign after hours).
What do you do with the house after you buy it?
We either renovate and resell it, or fix it up and keep it as a rental. It depends on the house.
Either way, we are the buyer. We buy in our own name, Tao Builders LLC, close at a licensed title company, and don't sell your contract to anyone else.