How Much Do Cash Home Buyers Actually Pay in Florida?
It's the question everyone asks and almost nobody answers with numbers: how much will they actually offer you? The short answer: typically between 60% and 85% of the after-repair value, depending on how much work the house needs. Here's the complete math, no runaround.
The formula every cash buyer uses
Every serious cash offer starts from the ARV (After-Repair Value) — what your house would be worth fully renovated — and subtracts the real costs of getting there:
ARV — After-repair value
Based on renovated comparable sales in your neighborhood. It's the starting point of the whole calculation.
− Renovation costs
Roof, AC, plumbing, electrical, kitchen, baths, flooring, paint. In Florida, a full renovation can run $30–$80+ per square foot.
− Holding and selling costs
Taxes, insurance, utilities, and financing during the renovation and resale months, plus closing costs on two transactions.
− Buyer's margin
Yes, companies need to earn to operate. A typical margin is 10–15% of ARV — without it, nobody takes on the risk.
A real example with numbers
| Item | Amount |
|---|---|
| ARV (renovated value) | $300,000 |
| Renovation costs | − $45,000 |
| Holding + closing costs (2x) | − $18,000 |
| Buyer's margin (~12%) | − $36,000 |
| Cash offer | ≈ $201,000 (67% of ARV) |
The fair comparison: net proceeds, not gross price
Say that same house lists as-is with an agent at $260,000 (unrenovated houses don't sell at renovated prices). Subtract the 6% commission ($15,600), 4 months of carrying costs ($8,000), post-inspection concessions ($5,000–$10,000), and seller closing costs, and net proceeds land around $225,000–$230,000 — assuming the financed buyer doesn't fall through along the way.
Against the $201,000 cash offer, the real difference is $25,000–$30,000 — not the $59,000 it looked like comparing gross prices. And that difference buys: closing in 2 weeks vs. 4–6 months, zero fall-through risk, zero repairs, zero showings.
How to know if an offer is fair
Ask for the math
A legitimate buyer explains what ARV they used, which comps, and what renovation budget they estimated. If they won't show the calculation, be suspicious.
Get more than one offer
It's free and no-obligation. Serious offers don't expire in an hour — "decide right now" pressure is a red flag.
Share information that changes the math
A newer roof, recent AC, comps the buyer missed — all of that can legitimately raise the offer.
Verify the closing happens at a title company
The agreed price should be exactly what you receive at closing. No surprise last-minute fees.