How It Works
There's no mystery to this, and there shouldn't be. Here is exactly what happens from the moment you send us a property address to the moment you're paid — including the parts other cash buyers tend to leave out.
Transparent by Design.
The Short 2-Minute Version
Want the quick version? This short video walks you through what to expect after you contact us—from the first conversation through receiving an offer and deciding whether moving forward makes sense.
The More In-Depth Explanation Below
THE WHOLE PROCESS
Three steps. No mystery between them.
A direct cash sale is simpler than a traditional listing, but it still deserves a clear explanation. Here is what we do, what you do, how we arrive at an offer, and where the real-world variables are.
- Tell us about the property Four basic fields are enough to start. No credit check and no obligation.
- We evaluate it and make a written offer We research comparable sales, account for the actual condition, and explain the important assumptions behind our number.
- You decide — and choose the timing If the offer works, title and escrow handle the closing. If it does not, you can simply say no.
START HERE
Tell us about the property
The form asks for your phone number, email, property address, and your name if you want to give it. That's genuinely enough to begin. We are evaluating a house, not making you apply for a loan, so we do not need your income or a credit report. We'll call you.
What helps us get started
- The property address
- A way to reach you
- Anything important you already know about the condition
- The approximate time you'd like to close escrow
What you do not have to do first
- Clean or stage the house
- Make repairs before contacting us
- Order an appraisal
- Commit to selling
What happens next: We review the property and the local market. If we need to see the house in person, we arrange a time that works for you.
THE UNDERWRITING
We research the property and build your offer
We start with recent sales of genuinely comparable homes — similar area, size, age, and property type — and then account for the condition and economics of your house. If a walkthrough is useful, you do not need to prepare for it like a showing. We are there to understand the property, not judge it.
One of the first numbers we develop is the ARV: our estimate of what the property could reasonably be worth after the contemplated repairs and renovations are completed. ARV is not the home's current as-is value and it is not a guaranteed future sale price. It is the starting point for the underwriting that follows.
What we are trying to understand
- What comparable properties have actually sold for
- What the house may need before a future resale or other exit
- Whether cleanout, title, occupancy, or other issues affect the transaction
- The costs and risk we would take on after buying it
What you can ask us to explain
- Which comparable sales influenced our thinking
- The major condition assumptions we used
- Why the cash number differs from a possible retail sale
- Anything in the offer you do not understand
THE OFFER ECONOMICS
What actually goes into a cash offer
There is no honest universal percentage that works for every house. Different properties require different repairs, different holding periods, different transaction costs, and different levels of risk. The underlying logic, however, can be explained.
Why we do not call this an “exact formula”
The structure is consistent, but the inputs are not. A lightly dated house does not carry the same construction risk as a full-gut renovation. A target buyer may accept a lower projected profit on a cleaner project and require substantially more on a complicated one. We would rather show you the moving parts than hide behind a universal investor percentage.
A HYPOTHETICAL UNDERWRITE
Follow the math on a fictional $415,000 property
The property, numbers and assumptions below are hypothetical and are shown only to explain the underwriting process. They are not an estimate or promise for any particular house.
| Underwriting line | How this example treats it | Amount |
|---|---|---|
| Projected ARV | Conservative projected value after the contemplated work | $415,000 |
| Base rehabilitation | $25/sq. ft. × 1,344 sq. ft. | −$33,600 |
| Foundation allowance | 3 hypothetical supports × $400 | −$1,200 |
| Total rehabilitation | Base rehab + known major-item allowance | −$34,800 |
| Holding allowance | 6% of ARV — approximately six months at 1% of ARV per month in this model | −$24,900 |
| Acquisition + resale transaction cost reserve | 7% of ARV reserved for modeled brokerage compensation and acquisition + resale closing costs. The reserve is deducted when determining MAO; lower actual costs do not automatically increase the agreed purchase price. | −$29,050 |
| End-buyer target profit | 15% of ARV in this example; this percentage is flexible, not a universal requirement | −$62,250 |
| Negotiation Room + Assignment Fee | 10% of ARV in this illustrative model | −$41,500 |
| Maximum Allowable Offer (MAO) | Maximum purchase price supported by the underwriting above, before seller-specific payoffs and adjustments | $222,500 |
| Seller payoffs + obligations | Property assumed owned free and clear — no mortgage payoff, liens, delinquent taxes, HOA balances, or other modeled seller-side obligations in this hypothetical | $0 |
| Projected Seller Net Proceeds | $222,500 MAO minus $0 in modeled seller-specific payoffs and obligations | $222,500 |
ARV is not today's guaranteed sale price
ARV means the projected after-repair value used for underwriting. It is an estimate of what the completed property may support after the contemplated work — not a promise about the future market.
Rehab is an allowance, not a contractor invoice
We classify the likely level of renovation, apply a square-foot underwriting allowance, and separately add applicable major-system or code items. Actual construction costs can ultimately be higher or lower.
Target profit is not guaranteed profit
The end buyer's target is compensation for capital, construction exposure, time and market risk. Repairs can run over, projects can take longer, and resale prices can change. The profit ultimately realized may be lower — or higher — than the target.
Your debt does not change the property's underwriting
A mortgage, lien or other seller obligation does not make the same house economically worth less merely because one seller owes more than another, and it does not reduce the Maximum Allowable Offer merely because that seller carries more debt. Those obligations are handled separately at closing and reduce what remains for the seller after payoff. That is why we show Projected Seller Net Proceeds as a separate calculation.
Why two legitimate cash buyers can arrive at different numbers
If every other underwriting assumption stayed exactly the same, changing only the end buyer's required target profit would change the Maximum Allowable Offer (MAO) like this. Because this hypothetical assumes $0 in seller payoffs + obligations, the projected seller net proceeds would be the same dollar amount in these examples.
| Illustrative target profit | Dollar target | Resulting Maximum Allowable Offer (MAO) |
|---|---|---|
| 10% of ARV | $41,500 | $243,250 |
| 15% of ARV | $62,250 | $222,500 |
| 20% of ARV | $83,000 | $201,750 |
| 25% of ARV | $103,750 | $181,000 |
These are not CashHouseSales.com price promises. They demonstrate one important point: there is no single required investor-profit percentage. Rehab exposure, complexity, time, market risk and the appetite of available end buyers all affect what a workable transaction can support.
WHERE WE FIT INTO THE ECONOMICS
Why “Negotiation Room + Assignment Fee” exists
If we expect to assign a purchase agreement rather than complete the acquisition ourselves, the economics need room for three different interests: the seller's agreed price, our ability to place and negotiate the transaction, and the end buyer's projected return for taking on the property and its risk.
The seller's contract price
This is the amount we agree in writing to pay for the property, subject to the actual terms of the purchase agreement and normal closing adjustments.
Negotiation Room + Assignment Fee
This gives us room to negotiate effectively with an end buyer. If that room is not needed in negotiation, part or all of the remaining spread may become our assignment fee.
The end buyer's economics
The end buyer still needs enough projected return to justify the rehabilitation, carrying costs, capital, uncertainty and resale risk they are taking on.
Using the hypothetical example above
If an end buyer needed, for example, another $10,000 of room to make the transaction work, our potential spread could fall from $41,500 to about $31,500 while the seller's contracted price could remain unchanged. That is one reason the negotiation room exists.
WHY THIS CAN MATTER TO A SELLER
Economic room can help a fast cash transaction come together.
In a conventional sale, the market may spend weeks or months finding a buyer who is willing and able to proceed, often with financing and other contingencies. In an assignable cash transaction, we are trying to structure the economics so that a real end buyer can evaluate the opportunity and move quickly.
That does not make the assignment spread free money, and it does not make a cash offer the highest possible sale price. It is part of the economic room that can make a faster path to liquidity workable for the seller, us, and the end buyer at the same time.
NO TEASER-NUMBER GAME
When an offer should — and shouldn't — change
What we are trying to avoid
We do not want to win a contract with an inflated number and then hunt for routine excuses to cut it later. Our goal is to understand the property before putting a serious number in writing.
What real transactions sometimes uncover
A material property fact nobody knew — for example a major condition materially different from the information available when the offer was made — can change the underwriting and require a new conversation about the purchase price. A newly discovered mortgage payoff, lien, delinquent tax, HOA balance, proration, or other seller-side obligation is different: it does not make the property worth less or reduce the MAO merely because the seller owes more. Instead, it changes the projected seller net proceeds. We explain which kind of change is occurring rather than allowing either one to appear as a surprise at closing.
The principle: normal due diligence should confirm the deal, not become a strategy for manufacturing a discount after you have already committed emotionally.
YOUR DECISION
You decide — and title and escrow handle the closing
If the offer works for you, we sign a written purchase agreement and open the transaction with independent title and escrow professionals. They verify ownership and authority to sell, verify the actual mortgage payoffs, liens, delinquent taxes, HOA balances, prorations and other seller-side or property-specific amounts payable from the transaction, prepare the closing figures, and disburse funds when the transaction is complete.
The purchase price stated in the written purchase agreement is the amount agreed for the property. Seller-specific debts, payoffs, prorations and other adjustments can then be deducted from that purchase price at closing, and the amount remaining is the seller's actual net proceeds. The Projected Seller Net Proceeds shown earlier on this page is only an estimate; title and escrow determine the actual payoff and adjustment figures used at closing.
What we handle
- Coordinating the purchase side of the transaction
- Working with title and escrow
- Buying the property in its agreed condition
- Following the written purchase agreement
What you remain free to do
- Read every document before signing
- Ask questions about anything unclear
- Have an attorney review the agreement if you want
- Decline the offer before entering a binding agreement
BEFORE YOU SIGN
The contract should not be a surprise.
You should be able to understand the agreement before you commit to anything. We encourage you to read the purchase agreement, ask about any provision that is unclear, compare it with another buyer's agreement if you want, and have an attorney review it before signing.
REALISTIC TIMING
How fast can a cash sale actually close?
Our normal operating range is typically 7–30 days, but the real answer depends on the property, title, escrow, and the date you want.
About a week can be possible
A fast closing is most realistic when ownership is clear, the necessary people can sign promptly, title and escrow have what they need, and no unusual property or transaction issue slows things down.
The closing can be scheduled later
If you are coordinating a move, settling an estate, waiting on occupants, or simply do not want to rush, we can agree on a later closing date rather than forcing an artificial deadline.
Why cash still takes time: removing a lender can simplify the transaction, but it does not eliminate title work, escrow, signatures, lien payoffs, record preparation, or other safeguards that may apply to a particular property.
THE CONVENIENCE SIDE
What you generally avoid with a direct cash sale
| Selling task | Direct sale to us | Traditional listing |
|---|---|---|
| Repairs before marketing | Not required by us | May help marketability; buyers may also request repairs |
| Cleaning and staging | Not required by us | Often used to prepare for photographs and showings |
| Repeated showings | Typically not; a property visit may be needed | May involve multiple buyer visits or open houses |
| Agent representation | No agent is required to sell directly to us | You may choose to work with a licensed brokerage |
| Buyer financing | Our cash purchase does not depend on a buyer mortgage | A financed buyer may have lender requirements and contingencies |
| Potential sale price | Usually reflects the convenience and costs we take on | A well-marketed retail sale may produce a higher price |
THE HONEST TRADE-OFF
Cash sale or traditional listing?
A direct cash sale may fit when…
- You value simplicity or certainty more than maximizing price
- The property needs work you do not want to perform
- You want to avoid a long marketing process
- Your situation makes a conventional listing inconvenient
A traditional listing may fit when…
- Your main goal is getting the highest price the market may support
- The house is already in good condition
- You have time for marketing, showings, and buyer contingencies
- You want representation from a licensed real estate professional
We do not need a cash sale to be right for everybody. We need you to understand the trade-off well enough to decide whether it is right for you.
COMMON QUESTIONS
Questions worth asking before you accept any cash offer
Am I obligated if I request an offer?
No. Requesting or receiving an offer does not obligate you to sell. A binding obligation begins only if you later choose to sign a purchase agreement, subject to the terms of that agreement.
How do you decide what to offer?
We look at relevant comparable sales, the actual condition of the property, expected repair or cleanout needs, holding costs, our acquisition and resale transaction-cost reserve, resale or other exit economics, risk, and the return necessary for the purchase to make business sense. Those underwriting factors determine the Maximum Allowable Offer (MAO). We then model seller-specific payoffs and obligations separately to estimate the seller's projected net proceeds.
Will the offer change after you see the property?
Our goal is to understand the property before putting a serious number in writing, not to use a high teaser and renegotiate ordinary conditions later. A material property condition that was not reasonably known can change the underwriting and may require a new conversation about price. A mortgage payoff, lien, delinquent tax, HOA balance, proration, or similar seller-side obligation generally affects what remains for the seller after closing rather than making the property itself worth less. We explain the difference rather than hiding the reason for a change.
What if there is a mortgage, lien, or back taxes?
Those issues do not automatically prevent a sale, and they do not make the property itself worth less merely because one seller owes more than another. Title and escrow verify the actual payoff and adjustment figures. Amounts payable from the purchase price — including mortgage payoffs, liens, delinquent taxes, HOA balances, prorations and similar obligations — reduce what remains for the seller and therefore change the seller's final net proceeds, not the property's MAO merely because the seller carries more debt.
Who pays closing costs?
We do not charge you an agent commission or a separate CashHouseSales.com fee. The buyer pays the closing-cost items allocated to the buyer at closing. Separately, our underwriting deducts a 7% of ARV reserve for modeled brokerage compensation and acquisition + resale closing costs when determining MAO. Lower actual costs do not automatically increase the agreed purchase price. Seller-specific mortgage payoffs, liens, taxes, HOA balances, prorations or other obligations may still be deducted from the purchase price at closing and reduce the seller's final net proceeds.
Can I have an attorney review the agreement?
Yes. You should understand anything you sign, and you are free to seek independent legal, tax, financial, or real-estate advice before making a decision.
Can you assign the purchase contract?
In some transactions we may assign our purchase contract to another buyer before closing. If assignment applies, it is addressed in the written agreement. We believe that possibility should be disclosed, not treated as something the seller is expected to discover later.
How do I know whether a cash buyer is legitimate?
Verify who you are dealing with, read the contract, understand where closing will occur, question unexplained fees or last-minute pressure, and do not rely on a buyer's own claims alone. Our cash-buyer verification guide explains what to check — including when you are checking us.
Is this the right route for you?
Sometimes it isn't, and we'd rather say so. If your house is in good condition and you have the time and appetite for a traditional sale, listing it may produce more money. A cash offer is useful information; it does not have to become your decision.
Start With a No-Obligation Offer
Four fields, no fees, and no commitment. You'll hear from Saul or Kari, usually within one business day.