The standard formula cash home buyers use to make offers: take the After Repair Value (ARV), multiply by 0.70, and subtract estimated repairs. The 30% buffer covers profit, holding costs, closing costs, and risk. A $300,000 home needing $30,000 in repairs would generate a typical cash offer of ($300,000 × 0.70) − $30,000 = $180,000.
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Reviewed by John Quigley · Founder, BuyHousesInCash · Last updated May 2026
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