If you have a house that needs work, you’re relocating on a tight timeline, or you simply don’t want showings and open houses, the promise of a fast cash sale can sound like a relief. I’ve sat at kitchen tables with sellers who needed to close in ten days, and I’ve walked through homes with foundation cracks, knob and tube wiring, even a tree leaning on a garage roof. The “we buy houses” crowd isn’t one monolith. Some are professional cash home buyers with crews, capital, and a reputation to protect. Others are daisy chains of assignment fees and delayed closings. If you know how these offers are built, you can spot the difference and negotiate for something fair.
This guide unpacks how cash buyers think, what a fair number looks like when you account for risk and cost, and how to protect yourself while moving quickly. If your goal is to sell my house fast, speed doesn’t have to mean surrendering thousands you don’t need to give up.
What a Cash Buyer Actually Does
A genuine cash buyer solves three problems for a seller: repairs, time, and certainty. Instead of asking you to fix a leaking roof or repaint smoke-stained ceilings, they budget for it. Instead of asking for two months to get a mortgage approval, they wire funds in a week or two. Instead of contingent offers and inspection retrades, they buy as-is and close when you pick the date.
That convenience isn’t free. Investors price in repairs, carrying costs, transaction expenses, and a profit margin for the risk they take. The best ones are transparent about that. If they can’t explain their math, that’s a red flag.
On the other side, not every “we buy houses for cash” postcard traces back to a balance sheet. Wholesalers put your property under contract, then try to sell that contract to a real buyer. Some are skilled and honest, some are not. Assignments can work, but they can also lead to last-minute price drops if the wholesaler miscalculates and can’t find a partner willing to pay the contracted price.
The Math Behind a Fair Cash Offer
I like numbers because they cut through spin. Most offers from serious buyers flow from a simple framework: the after-repair value minus total costs and a reasonable margin. Here’s how that unfolds when the work is real and the timeline is tight.
Start with ARV, the after-repair value. That means the likely sale price once the house is cleaned up to the standard of comparable homes. For a three-bed ranch in a mid-level neighborhood, that might be 315,000 based on recent nearby sales. Don’t accept ARV claims that feel low. Pull your own comps or ask an experienced agent for an opinion. Small gaps in ARV become large gaps in your take-home number.
Now subtract the work. Real rehab cushions are not small. A roof with decking issues might hit 15,000 to 20,000. HVAC in a 1,800 square foot home can run 7,000 to 12,000. Full cosmetic refresh, including paint, flooring, fixtures, and light kitchen updates, easily ranges from 25,000 to 45,000 depending on the market. Add contingency for hidden problems. Better investors carry 10 to 15 percent for surprises because surprises always come.
Add holding costs. Even a cash buyer pays to carry the project. Property taxes, utilities, insurance, lawn care or snow removal, and the implicit cost of their money. If the project takes three months end to end, carrying might tally 3,000 to 6,000 in many markets.
Add closing and selling costs. On their exit, the investor will likely pay buyer agent commissions and transfer tax, plus staging or minor punch-list work before listing. That can be another 5 to 7 percent of the resale price. On 315,000, that’s around 16,000 to 22,000.
Finally, a profit margin. Investors need a cushion because they take on risk and they can’t forecast every sewer line and appraisal glitch. Healthy, professional margins vary by market, but for light to mid-level rehabs I commonly see 10 to 15 percent of the ARV targeted as total margin, not windfall. On 315,000, that might be 31,500 to 47,000.
Let’s run a realistic example. Your house could sell for 315,000 after repairs. A credible scope lists 55,000 in rehab, 6,000 in holding, 20,000 in transaction costs at resale, and a 40,000 margin. The offer math would resemble:
315,000 ARV
minus 55,000 repairs
minus 6,000 holding
minus 20,000 selling/closing at exit
minus 40,000 margin
equals 194,000 offer
That looks blunt when you compare it to 315,000, but it can be fair if the numbers are honest. I’ve watched sellers accept 10,000 higher with a buyer who then retraded 20,000 during inspection week. I’ve also seen clean closings at the number above in ten days, which, for an estate handling probate bills or a seller facing two mortgages, was the right call.
How to Pressure Test an Offer Without Killing the Deal
Push on assumptions, not personalities. You’re not calling anyone a liar by asking for the outsized line items to be justified. A quick way to calibrate value: ask the buyer to walk you through repairs category by category and to show a summary of comps that support their ARV. If they can’t do that on paper, they often can’t deliver at the title company either.
Here is a simple, on-the-spot conversation arc I’ve used when reviewing an offer.
First, ask what comps they used and why each one is relevant. If your house backs up to a busy road, a comp on a quiet cul-de-sac doesn’t match. If your lot is 14,000 square feet and theirs is 6,500, note the difference. ARV drives everything.
Second, split the repairs into buckets you can sanity check: roofing, mechanicals, kitchen and baths, paint and flooring, exterior, miscellaneous. If the kitchen is already a decent 2008 update, a 20,000 kitchen line doesn’t fit reality.
Third, ask for the holding time assumption. A six-week job in summer isn’t the same as a four-month winter project in a cold climate with frozen ground and slow inspectors.
Fourth, clarify whether they plan to resell or hold as a rental. Rentals often need different finishes and the cost structure shifts. A buyer intending to keep the property might be able to pay more if long-term cash flow supports it.
Fifth, get their proof of funds and ask whether there are any partners who need to approve the deal. Direct buyers show you a bank statement or a letter from a hard-money lender with your property address on it. If the answer is vague, the odds of assignment and a price cut later go up.
When Speed is the Value Driver
Sometimes the calendar matters more than the spreadsheet. The clearest example is a https://claude.ai/public/artifacts/edcbe6b8-5487-4df1-abfd-7a6032e99c7b seller with an already purchased home and a bridge loan breathing down their neck. Every extra week can cost hundreds in interest and double utilities. Or take a property that failed inspection twice with retail buyers. Every re-list and re-inspect is another month you don’t get paid.
I helped a retired contractor sell a rental with a failing sewer line. Retail buyers ran at the scope of repair once the camera footage came back. An investor closed in eleven days, priced the risk accurately, and replaced the line in three days once the crews were scheduled. The seller netted roughly 30,000 less than a perfect retail sale might have yielded in a vacuum, but he also avoided two extra months of vacancy, taxes, and uncertainty. The trade made sense because he valued speed and sleep more than squeezing the last dollar.
If you truly need to sell my house fast, own that priority. Then your mission is not to get the absolute theoretical maximum, but the fair number within the speed lane.
Reading Between the Lines of “We Buy Houses” Marketing
You’ve seen the bandit signs at intersections and the glossy mailers with smiling families. Some of that marketing comes from solid operators, some from short-term wholesalers still learning the business. Filters help.
Watch the specificity. A buyer who says, we buy houses for cash and includes a real company name, local address, pictures of past projects, and title company references, is staking reputation. A buyer with a Google listing that’s a UPS box and no closed transactions listed anywhere should be evaluated more carefully.
Note how they talk about the process. Do they mention earnest money deposited within 24 to 48 hours, a short inspection period strictly for access and title work, and a fixed closing date? Or do they ask for long inspection windows, low or refundable earnest money, and “partner walkthroughs,” code for needing to shop your contract?
Ask about special clauses. A fair “subject to clear title” clause is standard. A blanket “subject to partner approval” is an escape hatch.
Check the paper trail. Contracts should include your preferred closing date, who pays for what, and a clear statement of whether the contract can be assigned. Assignable contracts aren’t evil, but they change the risk profile. If you don’t want assignments, say so.
How Much Less Than Retail Is Reasonable
Here’s the part sellers want put plainly. On a house needing only minor cleanup in a hot market, a credible cash offer might land roughly 8 to 12 percent off a likely retail sale price after adjusting for standard seller costs. That gap reflects convenience and speed, not heavy rehab. On a house with medium repairs, a 15 to 25 percent discount is common. Deep rehab, structural issues, or legal complications can move it further.
Don’t benchmark against your dream retail number. Benchmark against your likely net after time on market, concessions after inspection, mortgage payments during the listing period, and your own cost and hassle to fix what a retail buyer would demand. I’ve seen side-by-side nets where a cash offer at 205,000 matched or beat a six-week listing at 235,000 once the seller paid 14,000 in repairs, 14,000 in commission and closing costs, and carried two mortgage payments in the meantime.
Negotiation Moves That Actually Work
You don’t need a fancy playbook to add five to fifteen thousand to an offer. Two or three adjustments can move the needle.
Anchor the ARV with strong comps and provide them. Investors appreciate data. If you hand them two superior comps with details that a quick search might miss, like a recent appraisal on your refinance or upgrades with receipts, you increase ARV and compress their margin. I’ve seen sellers lift offers by 10,000 simply by showing that the house across the street sold higher because of the same extended family room.
Clarify repairs you’ve already handled or that aren’t needed. If the buyer assumed a full HVAC replacement but your furnace is a 2019 unit with service records, that knocks down the repair line. Pictures and documentation do the heavy lifting.
Offer flexibility in exchange for price. A short but certain inspection window, access for crews before closing, or letting the buyer choose a closing date inside a range can justify a bump. On the other hand, if you need a rent-back for two weeks after closing, be ready for the number to reflect that accommodation.
Stack multiple bids on a tight timeline. You don’t need to run a public auction, but giving three reputable cash buyers a 72-hour window to see the home and submit best numbers is efficient and fair. I’ve watched this create a 12,000 spread that the top buyer happily paid, because they trusted the process and timeline.
Get the last look. If you prefer Buyer A, tell them Buyer B came in higher by X and ask if they can meet or beat it. The worst they say is no.
The Paper that Protects You
Speed should not erase safeguards. Good investors are used to straightforward, mutually protective terms. Keep them short and clear.
Earnest money matters more than people think. It’s a signal of intent. In many markets, 1 to 3 percent is typical on retail deals. For a cash buy, I like to see at least 1 percent deposited with a neutral title or escrow within 48 hours. Non-refundable after the short inspection window is even better, tied only to clear title.
Inspection periods should be short and specific. Three to seven days is common. Spell out that inspections are for access and evaluation only, not for renegotiation unless undisclosed material issues are discovered. If a massive problem surfaces that no one could have known, a fair buyer will either adjust or let you out clean. What you’re avoiding is the routine fishing expedition two days before closing.
Assignment clauses should be explicit. If you’re comfortable with assignments, limit them to entities controlled by the buyer, not arbitrary third parties. If you’re not, say “not assignable.” Serious buyers won’t balk.
Close with a real title company or attorney. You want seasoned pros clearing liens, taxes, and payoff statements. Ask your escrow officer about the buyer’s reputation. Title staff see who closes smoothly and who disappears.
Include a simple disclosure addendum. List known defects and repairs in plain language. It shields you later and sets tone for a clean deal.
Edge Cases Where Cash Isn’t King
Not every situation calls for an all-cash investor.
A house in near-list condition in a high-demand area. If your timeline allows, a light pre-list spruce-up and a well-marketed listing can outpace any cash offer by a wide margin. The premium for speed shrinks when days on market are single digits.
Houses with unique features. A view lot, historic details, or a walkable location that commands emotional bidding may outperform investor math. Retail buyers fall in love, investors do not. When emotion drives price, lean retail.
Properties that fit first-time buyer programs. If your place qualifies for zero-down or down-payment assistance buyers, and the condition is decent, those programs bring more buyers to the table. You still deal with appraisals and lender calls, but the net can justify the time.
Sellers with flexible move-out. If you can move twice or vacate quickly after retail closing, you can reduce friction that often drags a traditional sale. The more flexibility you offer the retail side, the more they’ll pay.
When a Discount is Too Deep
I carry a personal rule of thumb. If the investor discount, after adjusting for realistic repairs, holding, and selling costs, pushes the investor margin over the high teens as a percentage of ARV on a simple cosmetic job, the offer is likely too low. Either the ARV is undercalled, the repairs are padded, or both.
One seller I worked with had a 1,450 square foot bungalow with dated finishes but solid systems. The first offer came in at 150,000 with a claimed ARV of 230,000 and a sell my house fast 55,000 repair budget. The comps supported a 250,000 ARV and the true rehab matched 30,000 to 35,000. We challenged the numbers with comp photos, a contractor’s quick bid, and a week-of-close timeline. The buyer moved to 182,000. The difference came from fixing math, not a miracle. The final close happened on day 12.
Cash, But Not All-Or-Nothing
There are hybrids between a retail listing and a pure cash sale. Some buyers offer a pre-inspected, as-is listing to their network of investors and contractors with a defined offer window. Others provide a concierge light-repair advance where they fund paint and carpet and get repaid at closing. There are also novation agreements where an investor lists the property after securing the right to control the sale, then pays you a set amount at closing. These can work, but they add moving parts and require trust. If someone proposes a creative structure, ask who signs the listing agreement, who pays carrying costs, and what happens if the plan misses the mark. Get every path and fee in writing.
Leasebacks deserve a mention. If you need cash now but can’t move for 30 days, a short leaseback after closing can make a deal possible. Expect to escrow a deposit and pay a market daily rent. Keep it short and define your obligations while in possession.
Signals of a Professional Cash Buyer
You can learn a lot from the first ten minutes of conversation and the first two pages of a contract. Pros talk in specifics. They bring a short, readable agreement. They answer the phone or text back fast, not just before signing, but after. They tell you who their title company is. They wire earnest money without drama and don’t make excuses about a partner being out of town when funds are due.
They also tell you when they’re not the best solution. I know a buyer who passed on a house because it was too clean. He told the seller to list it instead and even introduced a listing agent. That seller later sent him a referral that turned into a purchase. The point: look for someone playing the long game.
Knowing Your Bottom Line
Before you let anyone’s offer sway you, do your own math. Tally what it costs you to hold the property for the next 60 to 90 days. Include mortgage, taxes, insurance, utilities, yard care, and any HOA fees. Add what you’d likely spend to satisfy a retail buyer’s inspection list. Then ask yourself how much the hassle and uncertainty are worth in dollars. If two offers land within a few thousand, take the one that lets you sleep.
You can also stage your decision. Tell buyers you’ll sign when they deposit earnest money and schedule closing. If a buyer balks at putting skin in the game, that’s a soft no. If they lean in, you’ve learned something.
A Short Checklist to Keep You on Track
- Gather your comps or ask an agent for a realistic ARV range before you review any offer. Request a line-item repair estimate from the buyer and push for specificity where numbers feel padded. Verify proof of funds and ask about partners or assignment plans upfront. Set a short inspection window, require earnest money within 48 hours, and use a reputable title company. Keep one or two backup buyers warm until earnest money clears and closing is scheduled.
Final Thoughts from the Field
The phrase we buy houses draws a crowd because it compresses a messy process into a single promise. Like any promise in real estate, the outcome depends on who stands behind it and whether the numbers respect the facts on the ground. When you match a credible buyer to a property that benefits from speed and simplicity, the trade feels fair on both sides. When a property fits retail better, the smart buyers will tell you so if you ask the right questions.
If you walk away with nothing else, carry this: insist on clarity. Clear ARV, clear repairs, clear timelines, clear funds. That clarity is your leverage. It is how you turn a quick sale into a smart one and how you avoid the pitfalls that create horror stories. The right cash home buyers want you to understand their math, because doing so gets you to yes faster. And if you decide to wait or list instead, you’ll do it with both eyes open and your bottom line intact.