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“How Much Less Will My Cash Offer Be?” Here’s the Honest Answer
When agents are helping sellers decide between listing or getting a cash offer, what holds them back is the fear of how low the cash offer will be. They’ll refer to the standard formulas everyone uses, like 70% of the after-repair value minus repairs.
But a cash offer question is not as simple as “how much less will it be than the open market?” There is no clean formula that works across every property.
A property five miles from Boston is not the same as a single-family home in the Berkshires. A one-week condo renovation is not the same as a year-long gut rehab or condo conversion. A house in terrible condition may actually net the seller close to what they would get on the MLS after commissions and repairs are factored in.
So instead of trying to guess whether a property is a good fit, the better move is to get a quick ballpark before bringing anyone into the seller conversation. That way, you protect the relationship, give the seller both options, and still create an opportunity to make money whether the deal becomes a listing or a flip.
In this episode, I break down how cash offers are really calculated, why investor formulas can be misleading, and how agents can confidently bring cash-offer opportunities to sellers without risking trust or leaving money on the table.
Things You’ll Learn In This Episode
There is no universal cash-offer formula
A lot of agents hear about the 70% rule and assume that is how every investor prices every deal, but that formula can be misleading. So what actually determines whether an investor can offer more, less, or walk away completely?
Property condition changes the seller’s real options
A beat-up property may not be worth as much on the open market once repairs, commissions, and buyer expectations are factored in. Could a cash offer sometimes be just as strong, or even better, than listing on the MLS?
Risk matters more than repairs alone
Investor offers are shaped by location, buyer demand, renovation timeline, holding costs, and resale difficulty. How does a quick cosmetic renovation get analyzed differently from a year-long project?
How to protect the seller relationship
The biggest fear is bringing in a cash buyer who damages trust with the seller. How can you get a ballpark number before the appointment and know whether it is even worth bringing an investor into the conversation?
About Your Host
Tom Cafarella is a real estate investor, agent, coach, and entrepreneur who helps real estate agents achieve financial freedom through investing. Agent Investor is the only brand that helps real agents get off the real estate roller coaster and start building wealth by investing in real estate.
Join the Agent Investor Facebook Group here.
I'd love it if you subscribed to the show on Apple Podcasts. It helps feed the algorithm and reach more agents!
View all episodes
By Tom Cafarella - Real Estate Investor & Coach
5
4141 ratings
When agents are helping sellers decide between listing or getting a cash offer, what holds them back is the fear of how low the cash offer will be. They’ll refer to the standard formulas everyone uses, like 70% of the after-repair value minus repairs.
But a cash offer question is not as simple as “how much less will it be than the open market?” There is no clean formula that works across every property.
A property five miles from Boston is not the same as a single-family home in the Berkshires. A one-week condo renovation is not the same as a year-long gut rehab or condo conversion. A house in terrible condition may actually net the seller close to what they would get on the MLS after commissions and repairs are factored in.
So instead of trying to guess whether a property is a good fit, the better move is to get a quick ballpark before bringing anyone into the seller conversation. That way, you protect the relationship, give the seller both options, and still create an opportunity to make money whether the deal becomes a listing or a flip.
In this episode, I break down how cash offers are really calculated, why investor formulas can be misleading, and how agents can confidently bring cash-offer opportunities to sellers without risking trust or leaving money on the table.
Things You’ll Learn In This Episode
There is no universal cash-offer formula
A lot of agents hear about the 70% rule and assume that is how every investor prices every deal, but that formula can be misleading. So what actually determines whether an investor can offer more, less, or walk away completely?
Property condition changes the seller’s real options
A beat-up property may not be worth as much on the open market once repairs, commissions, and buyer expectations are factored in. Could a cash offer sometimes be just as strong, or even better, than listing on the MLS?
Risk matters more than repairs alone
Investor offers are shaped by location, buyer demand, renovation timeline, holding costs, and resale difficulty. How does a quick cosmetic renovation get analyzed differently from a year-long project?
How to protect the seller relationship
The biggest fear is bringing in a cash buyer who damages trust with the seller. How can you get a ballpark number before the appointment and know whether it is even worth bringing an investor into the conversation?
About Your Host
Tom Cafarella is a real estate investor, agent, coach, and entrepreneur who helps real estate agents achieve financial freedom through investing. Agent Investor is the only brand that helps real agents get off the real estate roller coaster and start building wealth by investing in real estate.
Join the Agent Investor Facebook Group here.
I'd love it if you subscribed to the show on Apple Podcasts. It helps feed the algorithm and reach more agents!
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