How We Calculate Our Cash Offer
When you ask Your Ohio Home Buyer for a cash offer on a Dayton-area house, we are not guessing a round number. We build the offer from a few clear pieces: what the house could sell for after repairs, what those repairs will cost, what it costs to buy and hold the property, and a margin so the deal works for us as a local buyer. This page walks through that math in plain language so you can see why a cash offer is usually lower than an online estimate — and why the net can still make sense for many sellers.
Nothing here is a promise about your specific house. Every offer is based on the property we see, recent nearby sales, and title. For a side-by-side estimate of listing versus cash, try our cash offer vs listing calculator, or compare options on cash buyer vs realtor.
The Simple Formula
Most cash home buyers use a version of this worksheet:
Cash offer ≈ After-repair value (ARV) − estimated repairs − buying/holding/selling costs − buyer profit
In other words, we start with what a repaired, market-ready version of the house could sell for, then subtract the work and risk we take on so you can walk away without fixing, showing, or waiting on a retail buyer’s loan.
1. After-repair value (ARV)
ARV is our estimate of what the house could sell for once repairs and updates are done — not what Zillow shows today, and not what a retail buyer might pay for it in its current condition. We look at recent sales of similar homes nearby, layout, bedrooms and baths, lot, and neighborhood demand. Online estimates can be useful as a starting point, but they often assume a ready-to-show house. If your home needs a roof, mechanicals, or a full clean-out, that retail number is not what a financed buyer will pay today.
2. Repair and renovation costs
We price the work we would actually do after closing: roof, HVAC, plumbing, electrical, foundation, kitchen and baths, flooring, paint, clean-out, landscaping, and code items. Dayton’s housing stock includes many older homes, so deferred maintenance is common. We buy houses as-is, which means those costs come out of our side of the deal, not your pocket before closing. The bigger and more uncertain the repairs, the more that line reduces the offer — because unknowns (hidden water damage, electrical that fails inspection later, etc.) are our risk, not yours.
3. Buying, holding, and selling costs
Even a smooth cash purchase has real costs. On our side that can include title and closing costs, holding costs while the house is vacant (taxes, insurance, utilities, lawn), project management, and the cost of selling or renting the property later. On many deals we also cover standard seller closing costs so the number we quote is closer to what you actually walk away with before mortgage and lien payoffs. Those carrying and transaction costs are part of why a cash offer is not “full retail minus a tiny fee.”
4. A fair profit margin
We are a local cash home buyer, not a charity and not a wholesaler flipping a contract for a quick assignment fee. We put capital into the purchase, take on repair and market risk, and need the deal to work after everything above. The margin is how we stay in business and keep making fair offers to the next seller. If a house only works with an unfair number, we would rather tell you that listing might be better than stretch a bad offer.
Worked example (illustrative only)
The numbers below are a labeled example for teaching the formula. They are not an offer on any real house, not based on a real address, and not a promise of what we would pay for a similar property. Your offer will be different.
- Example ARV: $180,000 (what a repaired, market-ready version might sell for)
- Example repairs: $35,000 (roof, HVAC, kitchen refresh, paint, clean-out)
- Example buying / holding / selling costs: $18,000
- Example buyer profit: $15,000
- Example cash offer: $180,000 − $35,000 − $18,000 − $15,000 = $112,000
In that example, a homeowner might see an online estimate near the ARV and feel the cash number is “low.” After subtracting repairs they would otherwise fund, commissions on a listing, months of payments, and the risk of a deal falling through, many sellers find the gap narrower than it first looks. Use the net-proceeds calculator to plug in your own assumptions, then call us for a real offer on your house.
What can change the number after we talk
We aim to make an honest offer based on what you tell us and what we can verify on a walkthrough. A number can move if title shows liens we did not know about, if a major condition was hidden, or if the payoff on the mortgage is higher than expected. Small cosmetic surprises rarely rewrite the deal. Big structural or legal surprises get an open conversation — we do not bait-and-switch over paint color.
When a cash offer is (and is not) the better net
If the house is updated, priced for Dayton retail buyers, and you can wait through showings and possible fall-throughs, listing with a good agent often puts more money in your pocket. If you need a firm close date, the house needs work, you want privacy, or you are under time pressure (including foreclosure timelines), a cash sale trades some top-line price for speed and certainty. More comparison detail lives on our cash offer vs realtor page and in the FAQ.
Get a real number for your house
The best way to see how this math applies to you is a no-obligation cash offer. Tell us about the house, schedule a quick walkthrough, and we will put the formula into a written number you can compare with a listing estimate. Call or text (937) 860-2509, or use the offer form on this site. There is no fee to talk and no pressure to accept.
Frequently asked questions
Why is your cash offer lower than Zillow or Redfin?
Those tools usually estimate a retail sale of a market-ready home. Our offer subtracts repairs, holding costs, and the work we take on so you can sell as-is and close on your timeline. Compare nets, not headline prices.
Do you use a fixed percentage of ARV?
No fixed “we always pay X%” rule. Repair scope and risk vary too much house to house. Two homes with the same ARV can get very different offers if one needs a roof and foundation and the other needs paint.
Are closing costs included in the offer?
We typically cover standard seller closing costs on houses we buy. The written offer is meant to reflect what you walk away with after those costs, before mortgage, tax, or lien payoffs that must clear at title.
Will the offer change after you see the house?
We price what we can see and verify. If something major was unknown — for example a collapsed section of foundation or a surprise lien — we will talk through it. We do not rewrite offers over small items.
Can I see this math on my own house?
Yes. Ask us to walk through the major line items when we present the offer. You can also run a listing-vs-cash net estimate on our calculator, then call (937) 860-2509 for a real offer.
Is the worked example above a real Dayton sale?
No. It is a made-up example to show the formula. It does not use a real address or real sale, and it is not a quote.
