Transparency
How We Calculate Every Cash Offer
We don't have a secret formula. Here's the exact math behind every offer we make — and why our number is what it is.
Quick Answer
Our cash offer equals the home's after-repair value, minus estimated renovation costs, minus our selling and holding costs, minus a reasonable profit margin. Every line item is explained. There are no surprise deductions at closing.
The Formula
Every cash home buyer uses some version of this formula, whether they tell you or not. We tell you.
What Goes Into Each Number
After-Repair Value (ARV)
We start by estimating what the home would sell for on the open market in fully repaired, retail-ready condition. This is based on recent comparable sales in your specific neighborhood — not general area averages.
Estimated repair costs
We calculate the realistic cost to bring the property to retail condition: foundation, roof, HVAC, plumbing, electrical, cosmetic updates, and any code issues. We use contractor pricing, not retail estimates.
Our holding and selling costs
After we buy and renovate, we'll sell the home — which involves agent commissions, closing costs, property taxes during renovation, insurance, and financing costs. These are real costs we factor in honestly.
Renovation timeline
Longer renovation timelines mean more carrying costs and more market risk. A home requiring 6 months of work carries different economics than one needing 30 days of light cosmetic work.
Our minimum margin
We're a business and need to operate profitably — we don't hide that. Our offers need to leave enough room for us to take on the project risk, manage the renovation, and make a reasonable return.
Cash Offer vs. Traditional Sale
The gross sale price is higher with a traditional listing — but the net is often closer than sellers expect once all costs are counted.
| Factor | Cash Sale (White Oak) | Traditional Listing |
|---|---|---|
| Repairs before sale | None required | $10,000–$50,000+ |
| Agent commissions | None | 5–6% of sale price |
| Closing costs | We cover them | 2–3% seller-paid |
| Days to close | 7–21 days | 60–120+ days |
| Inspection contingencies | None | Common deal-breakers |
| Financing fall-through risk | None | Common (30%+ of deals) |
| Showings required | None | Multiple, weeks of disruption |
| Carrying costs during listing | None | Mortgage, taxes, insurance |
| Offer certainty | Written, no conditions | May be renegotiated |
Common Questions About Our Offers
Is your cash offer negotiable?
Our offers are based on real math — if you have information that changes our inputs (a recent appraisal, a contractor estimate for specific repairs, knowledge of a comparable sale we missed), we're open to discussion. We don't negotiate for the sake of it, but we don't lock in a number if new facts change the picture.
How does a cash offer compare to listing with an agent?
A traditional sale will often produce a higher gross price, but the net difference is smaller than it appears. Subtract agent commissions (5–6%), repair costs before listing, holding costs during the listing period (60–90+ days in Houston), and potential buyer concessions. For many distressed properties, the net from a cash sale is comparable — sometimes better.
Why is your offer below what Zillow says my home is worth?
Zillow's Zestimate is based on general data and does not account for your home's actual condition. It also reflects retail value — what a move-in ready buyer would pay through an agent sale. Our offer reflects as-is value after factoring in the cost and risk of renovation.
Do I have to accept the offer?
Never. Our offers come with zero obligation. Many sellers get our offer, compare it to what a traditional listing would realistically net, and then decide. We encourage you to get multiple data points before deciding.
What if I need more than the offer to pay off my mortgage?
If your home's as-is value is less than your mortgage balance, you may be in a short sale situation. We can discuss this scenario — it's more complex but not impossible. We'll be honest if it's not a situation we can help with.
How long does it take to get an offer?
After a property walkthrough, we typically deliver a written offer within 24–48 hours. In some cases, we can provide a verbal range same-day based on the walkthrough.
See What Your Home Is Worth
Get a transparent, no-obligation cash offer. We'll walk you through exactly how we arrived at the number.