How Do Cash Buyers Calculate Your Home’s Value?

If you’re considering selling your home to a cash buyer, you may be curious about how they calculate your home’s value, especially if they’ve never seen it. It’s not as mysterious as it seems. The three factors affecting the value of your home in a cash offer are the same as they are in a traditional sale: location, condition, and comparison to comparable homes.


Home prices vary widely, even within the same town. The neighborhood, the proximity of the home to amenities, and the presence of negative influences, such as railroad tracks or a flooding hazard, can all affect the asking price of your home, whether you list it traditionally or receive a cash offer.

Cash buying companies typically buy homes with the intention of reselling them to another buyer. The location of a home affects how quickly it will sell and the price the company can get for it.


While a cash buyer will buy your house “as is,” without requiring you to make repairs, they will take your home’s condition into consideration when calculating their offer. The offer will be lower on a home needing many repairs or with major defects.

Many cash buying companies will fix up the homes they buy in order to resell them at a profit. They will consider the cost of those repairs in their offer to you. Either way—traditional sale or cash offer—you can expect less than average for a home in poor condition.

Comparable Homes

Just like a traditional sales agent, a cash buying company will do a type of market analysis. They will take a look at the size and features of your home and compare it to other homes in the area that have sold recently. 

After determining what price those homes sold for, they will decide whether your home will sell for about the same, or at a higher or lower price. As you might expect, the comparison process includes the location and the condition of your home. 

The offer you receive from the cash buying company may be quite competitive, considering you don’t have to pay expenses while you’re waiting for an offer through the open market. What’s more, there are no commissions or closing costs with a cash sale.

Want to know more about how a cash offer works in Northern Utah? Check out Joe Homebuyer now.

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