Seller Guide
What Affects a Cash Offer on a House?
By the Harbison Buys Homes team · Published · Last reviewed
The short answer
A cash offer starts with what the house should sell for after repairs, then subtracts the cost of those repairs, the buyer’s costs to buy, hold, finance, and resell, and a margin for risk. Condition, location, title issues, occupancy, and your closing timeline all move the number. A fair buyer should be able to show you each assumption.
The basic math
The example below is illustrative only — not a formula Harbison uses on every property, and not a promise about any home.
| Line item | Example |
|---|---|
| Estimated value after repairs | $320,000 |
| Repairs | −$30,000 |
| Costs to resell | −$22,000 |
| Holding and financing | −$10,000 |
| Costs to buy | −$3,000 |
| Contingency and buyer margin | −$35,000 |
| Illustrative offer | ≈ $220,000 |
What raises or lowers an offer
- Condition and the size of the repair scope
- The after-repair value supported by nearby sales
- Location and buyer demand
- Occupancy — tenants, family members, or contents left behind
- Title issues, liens, or unpermitted work
- How soon you need to close
- Property type — land and multi-unit properties are valued differently
Why a cash offer is usually below retail
A direct buyer takes on the repairs, the carrying costs, and the risk of reselling. In exchange, you skip preparation, showings, lender inspections, and the uncertainty of a financed sale. The discount is the price of that convenience and certainty — which is why it should be explained, not hidden.
Questions to ask any cash buyer
- Are you the buyer, or will you assign the contract to someone else?
- What value and repair assumptions is the offer based on?
- Is the price firm after the walkthrough, and what could change it?
- Who pays closing costs, and which title or escrow company will handle closing?
- What happens to the deposit if either side cancels?
- Can I take time to review this with family or an advisor?
How Harbison presents offers
We put the offer in writing with the assumptions behind it — the estimated value range, repair scope, costs, and closing options — and we show how it compares with listing when that is a realistic path. There are no deadlines designed to pressure you and no invented competing offers.
This guide is educational and does not replace legal, tax, or financial advice. Laws and thresholds change — consult a qualified attorney, CPA, or your agent about your specific situation.