Realtor vs Cash Offer

Let’s walk through the numbers

📱No guesswork - just clear, transparent numbers

1. Let’s say your house is in“good condition”— everything still works and is livable, but the style is a bit outdated, and some of the major systems (roof, foundation, HVAC, plumbing, electric) are nearing their end of life.

Most of the houses we buy fall somewhere on the spectrum—from a little bit outdated to needing major renovations, which is completely fine. We buy properties in all kinds of condition.  The kitchen features original laminate countertops, dated cabinetry, and aging appliances that lack modern efficiency.  Outdated fixtures and finishes throughout the house highlight the need for updates. Though timeworn, the home holds potential for transformation with the right vision and care.

2. Let’s say Houses Selling for top dollar in your neighborhood look more like this—fully renovatedwith modern finishes and major systems already replaced.

This home has undergone a stunning transformation, blending modern style with timeless comfort.  Walls were opened up to create a bright, airy layout, flooded with natural light. The once-dated kitchen now features sleek quartz countertops, custom cabinetry, and stainless steel appliances. Fresh paint, luxury flooring, and updated lighting throughout bring a contemporary feel, while thoughtful design touches add warmth and character. What was once an outdated space is now a beautiful, functional home ready for today’s lifestyle.

3. As you can see, there’s a noticeable difference between an outdated but livable home and one that’s fully renovated to the top of the market.

🔨 Buyers in today’s market expect modern finishes. The updated comparable property may have sold for $250,000, but it likely took 3–6 months and a significant investment, especially if a new roof or HVAC is needed, to reach that condition with good quality and workmanship (remember, we have to stay competitive in the retail market, or we will wait around for months with no offers or buyers, or reduce the listing price or re-list the property).

💵 There are selling transaction costs as well which include realtor commissions to the listing agent and buyer’s agent which can be up to 5-6%, closing costs and seller’s concessions which can be up to another 2-4%, paying the mortgage each month, taxes and insurance, utilities and lawn care, which can be another few thousand dollars a month out of your pocket (0.5-1%/month), etc. There are also buying transaction costs such as prepaid insurance premiums and surveys that we have to account for, even if we are able to forego on typical inspection costs, appraisal costs, and lender processing fees with a traditional real estate transaction.

😩 Of course, we have to make a little bit of profit for all the hassle and risk, but we try to keep it reasonable. Investors need to account for time, cost, and risk to get it there. We don’t keep all of the profit either - as we need to cover operating expenses like marketing, administrative costs, payroll, so we can continue to help more sellers in Houston. This is not like HGTV, many investors underestimate these costs and go out of business. We usually try to aim for a minimum margin of 10% to not lose money and be able to stay in business.

Would you, as a buyer, pay the same price for a house that still needs that work when a fully updated one is available for the same amount? Probably not—and that’s exactly why cash buyers need to buy at a discount.

Want to sell a home that looks like the BEFORE?

Don’t worry, we buy houses in any condition, AS-IS, no repairs needed.

View some of our renovation transformations here: