Our Fair Offer Promise: A Transparent Breakdown
No Secrets, Just a Simple Formula
Your Home's After Repair Value (ARV): Uncovering the true market potential of your property.
The Real Cost of Repairs (COR): A transparent look at the materials and labor needed.
Our Operating Costs: The expenses we handle so you can sell without hassle or fees.
How a Fair Cash Offer is Actually Calculated
Hi there, I’m Justin, the owner of Maryland Cash Home Buyers. I know that one of the most stressful parts of selling a home to an investor is the uncertainty: “Am I getting a fair price?” It’s a crucial question we believe every homeowner should ask, and it’s a key part of how to choose a legitimate home buyer.
You deserve total clarity. At Maryland Cash Home Buyers our promise is to pull back the curtain and show you exactly how we determine our offers. This isn’t a sales pitch; it’s an open-book guide to the real numbers involved in selling your house for cash in Maryland.
Ready for a Fair & Transparent Offer?
Now that you understand the mechanics of a fair cash offer, the next step is to see how those numbers apply to your unique property. We know that every homeowner’s situation is different, and a real-world example is often the clearest way to see if this path is right for you. If you’re ready, we can provide a clear, no-obligation offer tailored to your specific home and circumstances, with absolutely no pressure to accept.
The Simple Formula We Use for Every Maryland Home
It’s in Our Best Interest to Give You Highest Possible Offer
Our goal is to create a fair, win-win outcome. The only way to do that is to ensure you are fully informed and comfortable with the process from the very start. Below, you’ll find the exact formula we use—the same one used by most professional, legitimate home buyers. We’ll define the key terms, walk through a real–world example, and empower you with the knowledge to evaluate any cash offer you receive, whether it‘s from us or another company.
The Financial Benefit of a Direct Sale
The most significant financial advantage of working with a direct home buyer like us is the complete elimination of the typical costs associated with a traditional sale. Because we buy your house directly, there is no need for middlemen, which means you avoid paying for:
- Agent Commissions: (Typically 5-6% of the sale price)
- Closing Costs: (Often 2-3% of the sale price)
- Inspection & Repair Fees: (We buy “as-is,” so you don‘t pay for repairs)
- Staging & Marketing Costs: (No need to prepare your home for showings)
All of these avoided expenses are factored into the value of our offer, allowing you to keep more of your home’s equity without any out–of–pocket costs.
A Hypothetical Offer Example: Putting It All Together
Imagine your hypothetical house that you want to sell.
Now, also imagine a neighbor’s house, very closely comparable or identical to yours, located in the same neighborhood.
Imagine that your neighbor recently renovated this house and sold it for $300,000.
In this example, the market value of your hypothetical house after it has been fixed up would be $300,000. Next, we need to determine the cost of repairs, combined with the cost of selling/flipping the house. We also must calculate what our minimum profits should reasonably be after doing all the hard work.
Associated with buying, fixing, and selling the house. Thus, buying your hypothetical house is an investment. As a matter of business, we need to make the investment worth our time, or else there is no purpose in buying your hypothetical home. But first, before we determine our cost of repairs, the cost of selling/flipping your hypothetical house, and what our minimum profit needs to be. We need to show you how our all cash offer is structured. As well as, define a few terms that will help you better understand the offer.
The Simple Formula We Use for Every Maryland Home
Let’s Review the Numbers….
[Your Offer] = [After Repair Value] – [Cost of Repairs] – [Our Selling Cost] – [Our Minimum Profit]
Important Terms Defined
After Repair Value (ARV):
This is the market value of your house after we buy and renovate the house.
Cost of Repairs (COR):
This is our cost to renovate and update the house. So that it can compete with other recently renovated comparable houses currently on the market for sale.
Our Selling Costs:
Although we buy houses without involving real estate agents, we do use an agent to resell the house after we have purchased it from you and fixed it up. So we have to pay agent fees, holding costs, closing costs, taxes, etc. (these are all fees you do not have to pay when you sell your house directly to us). The costs we incur in reselling your house are typically about 10% of the resale price of your house after it has been fixed up.
Our Minimum Profit:
As a matter of business, when we buy your house it must be worth our time and effort. We must turn a profit on the challenging process of fixing and flipping houses; the innovative and unique way that we do this is what sets our company apart from the competition. The unconventional business model we use is the reason why we can guarantee you the highest legitimate offer. Through our beat any all cash offer guarantee, we consistently pay sellers more cash for their house. This is because we utilize innovative strategies, empowering us to cut out middlemen and reduce our costs more effectively and efficiently.
This enables us to do more deals, with lower profit margins. Our business model is focused on innovative and efficient systems, helping us to do more deals for smaller profits, versus the conventional methods of fewer deals for larger profits. Our unconventional business model benefits you because we can pay you more money for your house than the competition. This type of business model also benefits us because we win more deals, and in the long term, grow our company and make more money.
As-Is Value:
We calculate this value with the same method used to calculate the After Repair Value (ARV). We simply look at recently sold comparable properties, in a comparable condition as our hypothetical property. Then determine an average of what those homes sold for in their current (not fixed up) condition.
Now We Are Ready to Present Our Hypothetical Offer
- After Repair Value (ARV) = $300,000
- Cost of Repairs (COR) = $70,000
- Our Selling Cost = 10% x $300,000 = $30,000
- Our Minimum Profit = $25,000
[Your Offer] = [After Repair Value] – [Cost of Repairs] – [Our Selling Cost] – [Our Minimum Profit]
[Your Offer] = [ARV] – [COR] – [Our Selling Cost] – [Our Minimum Profit]
Your Offer = $300,000 – $70,000 – $30,000 – $25,000 = $175,000
Your Hypothetical Offer = $175,000
This is how the math works for every property. The only difference is your home’s unique numbers. Now that you’ve seen our transparent formula, the next step is to see what we can offer for your house, with no obligation and no pressure.
The Logic Behind Our Offer: A Win-Win Approach
Our offer is a direct reflection of the math we’ve outlined above: the home’s potential market value, minus the necessary costs to get it there. This straightforward formula is how we ensure we can run a sustainable local business while providing you with the strongest possible offer.
We believe the best transactions are the ones where everyone walks away feeling good about the outcome. By being transparent with our numbers, our goal is to present you with an offer that is not only fair and competitive but also makes logical sense for your specific situation. If you have any specific questions about our process, please don’t hesitate to contact us directly.
This same fair, transparent formula is the foundation of every offer we make across our entire Maryland service area. While we proudly serve all 23 counties, our deep local expertise is particularly valuable for homeowners in our primary markets, including Anne Arundel County, Baltimore County, Frederick County, Howard County, Montgomery County, and Prince George’s County.
Why Our Offers Are Better?
The following 3 reasons are what makes us different from traditional pro home buyers, thus allowing us to pay more cash for your house.
1. We cut our costs more effectively, (i.e. cost of renovations, cost of advertising, cost of middlemen like agents, banks, and inspectors, costs related to regulations, deadlines, and paperwork).
2. We stay up to date with sophisticated software and other management/operational systems. this helps us to do our job more efficiently.
3. We invest money and time into continuing real estate investment training and education. Staying up to date on market trends and various buying/selling strategies, this gives us an advantage in the marketplace.
In other words, we continuously innovate creative ways to sell your home fast. Through utilizing our property evaluation process, as previously explained in the equation above. We combine this with cutting out middlemen, along with knowledge of localized investing strategies. Thus, granting the leverage to cut costs and pay more than the competition.
Even the big nationwide companies. Thanks to these advantages, we win more opportunities to buy more houses locally. Therefore, it’s in our best interest to pay you more cash for your house than conventional companies that buy your house for cash are able to pay.
Your Questions Deserve Clear Answers
Understanding our offer formula is a big step, but we know it’s just one part of a much bigger decision. It’s completely normal—and smart—to have more questions about the process, timelines, or what selling “as-is” truly entails. We’ve compiled a comprehensive FAQ page to provide clear, straightforward answers to the most common concerns we hear from Maryland homeowners just like you.