How Much Do Cash Home Buyers Pay in Texas? (The Real Math)

Most cash home buyers in Texas pay 70–85% of a home’s after-repair value (ARV) — the price it would fetch fully fixed up. Where your offer lands in that range depends on condition, location, and how much work the house needs. Here’s exactly how the number is built.

The formula behind every cash offer

A real cash offer isn’t a guess. It’s four numbers:

1. 1

   Start with after-repair value (ARV)

   What the home would sell for fully renovated, based on recent comparable sales in your neighborhood.

2. 2

   Subtract repairs

   A realistic estimate to bring the home to that resale condition — roof, foundation, systems, cosmetics.

3. 3

   Subtract resale and holding costs

   The buyer has to resell it: agent commission, closing costs, taxes, and insurance while they hold it (usually ~10%).

4. 4

   Subtract a margin

   The buyer's profit for taking on the work, cost, and risk. On a fair offer this is reasonable — not a lowball.

So on a $300,000 ARV home needing $30,000 of work, a typical offer looks like: $300k − $30k repairs − ~$21k resale costs − margin ≈ $210k (about 70% of ARV). A home needing only light cosmetics on the same block can come in higher.

Condition is what moves the percentage

The single biggest lever is how much work the home needs — because the buyer, not you, pays for it.

Move-in readylight cosmetics only 80–85%

Dated / wornkitchens, baths, flooring 73–80%

Major repairsroof, foundation, systems 65–72%

Source: Typical ranges for Texas cash purchases; your offer depends on local comps and actual repair scope.

This is also why selling as-is to a cash buyer can still make sense on a rough house: you’d have to spend that repair money yourself to list it, and you might not recover all of it.

What percentage do cash home buyers pay?

Cash home buyers in Texas typically pay 70–85% of a home’s after-repair value (ARV). The percentage depends mostly on condition. A move-in-ready home lands near 85%. A home that needs a roof, foundation work or new systems lands near the bottom of the range, because the buyer pays for those repairs.

Do cash home buyers pay market value?

No, cash home buyers pay below full retail market value. The discount covers what the buyer takes on: repairs, holding costs, resale costs and the risk of a market shift. In exchange you get a fixed closing date, no repairs, no showings and no commission. A listing usually nets more on paper, before those costs.

How much less do cash home buyers pay?

A Texas cash offer usually comes in 15–30% below after-repair value. That is the same 70–85% range, seen from the other side. The gap is smaller than it looks next to a listing, which carries agent commission, seller-paid repairs, concessions and months of mortgage, tax and insurance payments before it closes.

Do cash home buyers pay closing costs?

Many cash home buyers pay the seller’s closing costs, but confirm it in writing before you sign. House Buyers Texas pays the standard seller-side closing costs at a Texas title company and charges no fees or commissions. What comes out of your proceeds is only what must be paid off to deliver clear title: your mortgage balance, any liens and any back property taxes.

How do cash home buyers make money?

Cash home buyers make money on the spread between their purchase price and the home’s after-repair value. They buy below ARV, pay for the repairs and holding costs, and then resell the home or keep it as a rental. That spread is the “margin” line in the formula above. A fair buyer keeps it reasonable and will show it to you.

Some companies don’t buy at all. They sign your house under contract and sell that contract to another investor. Ask any buyer directly: “Will you close with your own funds, at a Texas title company, on the date in the contract?” A real cash buyer answers yes and puts the closing date in writing.

See the whole calculation

We show sellers the full line-by-line math on every offer — comps, repairs, costs, and margin. Walk through a real example on how we calculate our cash offer, and learn what separates a fair cash home buyer in Texas from a lowballer. If a buyer won’t show you the number’s parts, don’t take the number.