When a seller hears my offer, the first reaction is often, “How did you get that number?” It’s a fair question. A cash offer isn’t a guess or a percentage pulled out of the air. It’s the result of a spreadsheet where a buyer starts with what the house could sell for after work is done and subtracts every cost they’ll pay along the way. Handling the math behind an offer on a Parkville or Carney house? See a cash offer on a Parkville house.
I’m Evan Weissman. I buy houses across Maryland, and I’d rather show sellers the math than ask them to trust a number. Here’s what’s in a typical cash buyer’s spreadsheet, line by line, and where sellers can actually influence the result.
Line one: resale value after work
Every calculation starts at the end: what would a retail buyer pay for this house once it’s repaired? Buyers look at recent sales of similar houses nearby that are in updated condition. The closer the match in size, age, layout, and location, the more reliable the estimate. In neighborhoods with few sales, the estimate gets wider, and buyers tend to be more conservative.
Line two: the repair budget
Next comes the cost of bringing the house to that condition. A buyer walks through room by room and builds a scope:
- Big systems: roof, HVAC, electrical, plumbing, water heater.
- Structure: foundation, framing, drainage.
- Interiors: kitchen, baths, flooring, paint, doors, trim.
- Exterior: siding, windows, gutters, decks, landscaping.
- Permits and inspections required by the county.
Then they add a contingency for what can’t be seen yet. Older houses get a larger cushion because surprises behind walls are common.
Line three: buying costs
The buyer pays their own share of transfer and recordation taxes, title charges, and settlement fees when they buy from you. In Maryland, taxes alone vary a lot by county. The Department of Legislative Services lists recordation at $2.50 per $500 in Baltimore County and $7.00 in Frederick, for example.
Line four: holding costs
From the day they buy until the day they resell, the buyer pays:
- Property taxes and insurance (often a more expensive vacant or builder’s risk policy).
- Utilities to keep the house heated and running during work.
- Interest or the cost of their own capital tied up in the project.
- HOA dues, if any.
The longer the project, the bigger this line. A house that needs a full renovation might take many months from purchase to resale.
Line five: selling costs on the resale
When the buyer resells, they pay commission, their share of transfer and recordation taxes again, and possibly closing help to the next buyer. These come off the top of the resale price.
Line six: margin for risk and profit
Finally, the buyer needs a margin that covers risk and pays them for the work. Projects go over budget, markets shift, and resale can take longer than planned. Different buyers set this differently, and it’s one reason offers vary from one buyer to the next.
The whole spreadsheet on one page
The spreadsheet looks roughly like this:
| Line | What it covers |
|---|---|
| Resale value after work | Based on updated comparable sales |
| Minus repairs and contingency | Full scope plus cushion |
| Minus buying costs | Taxes, title, settlement |
| Minus holding costs | Taxes, insurance, utilities, capital |
| Minus resale costs | Commission, taxes, buyer concessions |
| Minus risk and profit margin | Varies by buyer |
| Equals maximum offer | What the buyer can pay |
Some investors use shortcuts, like a fixed percentage of resale value minus repairs. Those can be a starting point, but the line-by-line version is more accurate for a specific house.
Why two buyers can be far apart
If you get several offers, they might differ a lot. Common reasons:
- One buyer plans a full renovation for retail resale, another plans a light refresh and a rental.
- They estimated resale value from different comparable sales.
- One saw a problem, like foundation movement, that the other missed or priced differently.
- Their holding and financing costs differ.
Ask each buyer to walk you through their numbers. A buyer who won’t explain at all is a yellow flag. My guide on how to spot a real cash home buyer covers other things to watch for.
Where sellers can tighten the number
You can’t change the market, but you can reduce uncertainty, and uncertainty is expensive in a buyer’s spreadsheet:
- Share what you know. Roof age, furnace age, past repairs, and any inspection reports.
- Provide access. Let the buyer see the attic, crawl space, and basement.
- Clarify title early. Estates, liens, or missing signatures add risk if they’re unknown.
- Be flexible on timing. If the closing date works for both sides, holding costs can be lower.
Comparing against your other options
Once you understand a cash buyer’s math, compare it against listing. My seller net sheet guide shows how to put both options side by side, and my article on why cash offers are lower than list price explains the gap in more detail.
Do cash buyers use a set formula?
Some use shortcuts as a starting point, but a careful buyer builds the offer from resale value minus repairs, buying and holding costs, resale costs, and a margin for risk and profit.
Why did two cash buyers give me very different offers?
They may have different plans for the house, different repair estimates, different comparable sales, or different costs. Ask each to explain their numbers.
Can I negotiate a cash offer?
Yes. Sharing documentation, giving full access, and being flexible on timing can reduce a buyer’s uncertainty, which can improve the offer.
Does the condition of my house matter more than its location?
Both matter. Location drives the resale value, and condition drives the repair budget and timeline. Together they set most of the offer.
Talk through your situation
If you’d like to see my spreadsheet for your house, call or text me at (410) 498-7473. I’ll walk you through each line.