Why Most 'We Buy Houses' Offers Are Lower Than You Think — and What to Compare

Every 'we buy houses' investor uses roughly the same formula: the after-repair value, minus the repair costs, minus a margin for profit and risk, equals the offer. Once you understand that, you can tell whether an offer is fair — and more importantly, whether a different path puts more money in your pocket.

The investor formula

Offer = After-Repair Value − Repair Costs − Investor Margin (often 15–25%) − Selling Costs. So a house worth $280,000 fixed up with $40,000 in repairs might get an offer around $160,000–$175,000. That's not a lowball for no reason — it's the formula. But it also means the investor is keeping the entire gap between as-is and after-repair value.

What to compare it against

• The net of a listing after commissions, closing, and repair credits.
• The net of Repair Funding — you keep the upside the investor would have taken.
• The net of a Repair & Profit Partnership — you share that upside instead of giving it all away.

"A cash offer isn't wrong — it's just one path. The question is whether the gap the investor keeps is bigger than what you'd net by partnering on the renovation instead."