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Buyer Economics

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The real math behind cash home buyer offers — how they calculate, what percentage of market value to expect, and how to tell if your offer is fair.

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Everybody wants to know the same thing: if I sell my house to a cash buyer, am I leaving money on the table? Here’s the honest answer, the real math cash buyers use, and how to tell if the offer in front of you is fair or insulting.

Industry-standard formula

Cash offer = (ARV × 70–85%) − Repair costs. Where ARV = After-Repair Value (what the house would sell for fully fixed). The exact percentage flexes based on condition, repair scope, local market, and buyer’s risk tolerance.

Decoding the cash buyer formula

Every legitimate cash buyer in NC and SC uses some version of the same math. They’re not pulling numbers out of a hat — they’re applying a formula that works backwards from what they need to profit when they eventually resell.

Example. You own a 3-bed ranch in Gastonia NC. After repairs it would sell for $265,000 (that’s ARV). Repairs needed: $30,000 (roof, HVAC, kitchen, paint). A cash buyer running the 75% rule: (265,000 × 0.75) − 30,000 = $168,750 offer.

Feels low until you do the full comparison. If you listed with an agent for $265,000 after doing the repairs yourself, you’d pay: $30,000 in repairs + $15,900 commission (6%) + $3,000 closing costs + $3,500 carrying costs over 3 months + $2,500 inspection credit after the deal. Total: $54,900. Net: $210,100. Cash offer net (no costs, no commissions): $168,750. Gap: $41,350.

That’s a real $41K gap — but now add in 3 months of your time, the risk the listing sits 6 months, the chance a buyer’s financing falls through, and the emotional cost of showings. For many sellers, that gap is worth closing.

The 70–85% range — what flexes where

  • 85% of ARV: Move-in ready homes in hot NC markets (Charlotte, RTP, Greenville SC). Minimal repairs. Buyer makes a small margin but can resell fast.
  • 80% of ARV: Average condition, cosmetic updates needed (paint, flooring, some kitchen work). Most common tier.
  • 75% of ARV: Needs a real renovation — new HVAC, roof, or systems work. Still a flip, just more risk.
  • 70% of ARV: Major work needed — foundation, structural, electrical. Buyer holds through a longer renovation and carries more risk.
  • Below 70%: Either you’re talking to a wholesaler (who’s going to flip your contract), or your house has serious issues (code violations, condemnation, severe damage). Get a second opinion.

Why the % varies between NC and SC markets

NC’s attorney-closing requirement adds $800-$1,200 per transaction, which legitimate buyers bake into their offer. SC’s title company process is cheaper. Result: on identical homes at identical ARV, you can expect SC offers ~0.5–1% higher than NC offers. Not huge, but worth knowing.

Hot markets (Charlotte Metro, Upstate SC around Greenville, SC Lowcountry around Mount Pleasant) command higher percentages because cash buyers can resell quickly. Slower markets (NC rural east, parts of midlands SC) command lower percentages because the buyer holds the property longer.

What to verify before accepting any offer

  1. Ask the buyer for their ARV number. A legitimate buyer shows their comps.
  2. Ask for their repair estimate. A good buyer walks you through the spreadsheet.
  3. Calculate their effective % of ARV (offer + repairs / ARV). Compare to the ranges above.
  4. Get at least 2 written offers. If one buyer comes in at 68% and another at 78%, the high one isn’t being generous — the low one is lowballing.
  5. Verify no hidden fees in the contract. Legitimate cash buyers cover all closing costs themselves.

Want a transparent, math-shown cash offer on your Carolinas home?

We show our ARV, repair estimate, and formula on every offer. No lowball surprises. 24-hour turnaround.

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Frequently Asked Questions

Roughly 85% of your home’s after-repair value, minus any repair costs. For a move-in ready home worth $300,000, expect offers around $255,000. For a home needing $40,000 in work, same ARV: closer to $215,000.

Often yes on distressed or non-standard homes (iBuyers reject properties with foundation issues, code violations, over a certain age, etc.). On standard homes in standard condition, iBuyers can be competitive — but charge 5–8% in fees that cash buyers don’t.

Yes, and you should. Legitimate buyers leave 2–5% negotiation room in their initial offer. Come back with a fact-based counter (“the roof is actually only 3 years old, not 10 like you assumed — that’s a $15,000 adjustment”) and most buyers will move.

With reputable cash buyers, yes. Your offer number equals your check at closing. Watch out for any buyer who tries to deduct closing costs from your offer — that’s a hidden fee.