Offers & pricing
How Do Cash Home Buyers Calculate Their Offers in Florida?
A cash offer is what the house is worth after repairs, minus the cost of doing them, minus what it costs to carry and close on the property, minus a profit margin for the buyer. That formula is standard across the industry, and any buyer who cannot explain it to you in plain terms is not one to trust.
Reviewed by Tyler Gibson, Florida licensed real estate agent and investor. Last updated October 27, 2026.
01 Step 1: what is the house worth renovated?
Every cash offer starts with an after-repair value: what the house would realistically sell for on the open market once repaired and updated. Buyers estimate this from recent sales of comparable homes nearby, not from an asking price or a sentimental number.
02 Step 2: subtract the repairs
Next comes the repair estimate: roof, HVAC, foundation, kitchen and bath work, paint, flooring, and anything else the house needs to sell at that after-repair value. Buyers price this from real contractor costs in Florida, and repair costs here are not cheap. Older Florida homes with long-deferred maintenance can need a hundred thousand dollars of work before they are retail-ready.
03 Step 3: subtract the costs of carrying and closing
Between buying your house and reselling it, the buyer pays property taxes, insurance, utilities, renovation interest, and the standard closing costs on both sides of the transaction. Those carrying costs are real and they come out of the math before any offer is written.
04 Step 4: subtract a fair profit margin
The buyer is doing this for a living, and the remaining amount after repairs and costs has to leave a margin or the deal does not happen. That margin is not hidden greed; it is the compensation for the risk of a renovation. A fair offer leaves you as the seller with a realistic number, not retail minus a token.
05 Why two buyers can offer different numbers
Different buyers estimate repairs differently, use different comparable sales, and demand different margins. That is why one buyer's offer is not grounds for another buyer to match. Ask each one to explain their math and compare the reasoning, not just the number.