By Prop Hunters · Updated October 16, 2026 · Miami Lakes, FL
Most cash buyers start with what the house would sell for once it is fully repaired — the after-repair value, or ARV. They subtract the cost of repairs, the costs of owning and selling the house while it is fixed, and the margin they need to justify the risk. What is left is the offer. We use the same approach, and we don’t use a flat percentage.
Offer = after-repair value − repairs − holding costs − closing and selling costs − required margin.
You may see a “70% rule” quoted online. Treat any flat percentage as a rough starting point, not a quote — real offers move with the house, the neighborhood and the work involved.
We look at recorded sales of similar, renovated homes nearby: size, bedrooms and baths, lot, age, flood zone and street. Recorded sale prices come from public records — the county Clerk and Property Appraiser — which is why we rely on recorded (doc-stamp verified) sales instead of an online estimate. Asking prices of active listings are not sales.
We estimate what the house actually needs: roof, plumbing, electrical, AC, windows, flooring, kitchens and baths, and any structural or water damage. Older houses often hide problems, so a careful buyer allows for surprises. Unpermitted work and open permits also have a cost, because they have to be corrected or closed out.
While a house is being renovated, the owner pays property taxes, insurance, utilities and the cost of the money used to buy and fix it. When the house is resold, there are closing costs, and sometimes agent fees. The longer the project, the more these cost.
A renovation can go over budget, take longer than planned or sell for less than hoped. The buyer needs a margin to make the risk worth taking. That margin, not a hidden fee, is a big reason a cash offer is lower than a retail price.
Want to see it applied to your house? Send us the address and we’ll walk through our numbers.
The market value of a repaired house is not what the house is worth today in its current condition. A cash offer subtracts repairs, holding and selling costs and a margin for risk, and you skip showings, commissions and repair negotiations.
ARV stands for after-repair value: what a house is expected to sell for once it is fully repaired and updated, based on recent recorded sales of similar homes nearby.
It depends on the buyer. Ask before you sign. When you sell directly to us there is no listing-agent commission, and we’ll go through any closing costs with you.
You can ask the buyer to explain their assumptions. If you have information they didn’t — a new roof, permit records, a lower repair estimate — it may change the number.
This guide is general information, not legal or tax advice. Florida law changes, and every situation is different — talk to a Florida attorney or tax professional about yours.