What could you sell for?What would you keep?

Why a cash offer may be below a listing price

An investor generally needs room in the purchase price for repairs, the costs of owning and selling or renting the home, uncertainty and a return. A buyer planning to live in the home may approach the same property differently.

That is why a direct offer can be below what you might achieve by marketing the home to a wider pool of buyers. In return, you may avoid some preparation, showings and renovation work. Whether that tradeoff is worthwhile is your decision.

Which value are you comparing it with?

A house needing a roof and an updated kitchen should not be compared with a renovated sale without allowing for the difference in condition. Equally, an online estimate is not a walkthrough or a firm offer.

• Current-condition value: what buyers might pay for the home as it stands.
• After-repair value: an estimate of what it could sell for after specified work, not its value today.
• Asking price: what a seller hopes to receive; it is not proof of a completed sale.

Work out the money left after closing

Start with the agreed price, then subtract the mortgage payoff and any other amounts you must pay from the sale. Include the seller costs and adjustments stated in the proposed transaction. Ask for an estimated settlement statement so you can see the calculation.

Your mortgage balance affects what you keep. It does not, by itself, establish what a buyer thinks the property is worth.

Compare a direct sale and a listing fairly

For each option, use a realistic sale-price estimate and list the costs that actually apply to you. Do not subtract repair costs twice: if you are considering listing as-is, use an as-is price and only the work you really intend to pay for.

• Preparation: repairs, cleaning, staging and your time.
• Sale expenses: negotiated agent compensation, closing costs and any buyer credits.
• Time before closing: mortgage payments, utilities, insurance and maintenance while you still own the home.
• Uncertainty: inspection, financing, appraisal or other conditions in each offer.

Ask us to explain the proposed offer

We prefer to walk the home before making an actual offer. We’ll discuss condition, occupancy, your timing and the terms of a possible purchase. Ask which costs are yours, which conditions remain and whether any further review could affect the proposal.

There is no universal percentage we can responsibly apply to every address. You can compare our proposal with other offers or a local agent’s assessment before deciding. A direct sale should solve a problem for you, not just produce a number.