Most cash offers land somewhere between roughly 70% and 85% of a home's likely retail market value, though the exact number depends heavily on the property's condition and what it would cost to make it market-ready. The gap covers the repairs, carrying costs, and resale risk the buyer is taking on — and it's usually offset by what you're not paying: no agent commission, no repair bills, and no months of holding costs while a listing sits.
What actually goes into the number
- Repair estimate. What it would cost to bring the home to move-in-ready condition.
- Holding costs. Insurance, property taxes, and utilities while the buyer owns and resells it.
- Resale costs. The commission and closing costs the buyer will eventually pay when they sell.
- A reasonable margin. The buyer's return for taking on the risk and doing the work.
Why “less than market value” isn't the full picture
A traditional listing that sells at full market value still comes with a 5–6% agent commission, whatever repairs a buyer's inspection turns up, and typically 30 to 90+ days of carrying costs while it's under contract — longer if the sale falls through and it has to relist. Once those are subtracted from a traditional sale price, the net difference between listing and a cash offer is often smaller than the sticker prices suggest.
How to tell if an offer is fair
Ask the buyer to walk you through how they arrived at the number — a straightforward answer is a good sign. Comparing it against at least one other cash offer, and pulling a few recent comparable sales yourself, will tell you quickly whether a number is in a reasonable range for your neighborhood and the home's condition.