How Cash Home Buyers Calculate Their Offers
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South Carolina’s Trusted Cash Home Buyer Since 2009
Or call us anytime: (803) 590-8818 · Last reviewed: May 2026 · By the Restoration Homes Team
How Cash Home Buyers Calculate Their Offers
Most South Carolina cash home buyers price offers using a similar formula based on After Repair Value (ARV) and repair costs. This page walks through how that math actually works, why offers come in below retail, and how to compare offers from different buyers — so you can make an informed decision instead of just trusting a headline number.
Frequently Asked Questions
Yes, cash offers in South Carolina are negotiable — the initial number isn't always the final number. Most cash buyers leave room to move, especially if you can show comparable sales, a recent appraisal, or evidence the repair estimate is too high. Things commonly negotiated: purchase price, closing date, who pays closing costs, leaseback (staying in the home for a few days post-closing), what stays with the property (appliances, fixtures), and earnest money deposit. The strongest leverage is having a competing offer in writing. Cash buyers are most flexible when (1) the home is in better condition than they assumed, (2) you have a clean title with no liens, and (3) you can close quickly. Don't be afraid to counter — a fair buyer will engage in real conversation about price.
Getting multiple cash offers is usually a smart move, especially on homes worth $150,000+ or in good condition. Cash investor offers can vary by 10–20% or more on the same property because each buyer estimates repairs differently, has a different exit strategy (flip vs. rent vs. wholesale), and a different cost of capital. Three offers is a common sweet spot — enough to triangulate fair value without dragging the process out. When comparing, look beyond the headline number: who pays closing costs, earnest money deposit size, due diligence period length, financing or inspection contingencies (real cash buyers shouldn't have any), and proof of funds. The highest offer isn't always the strongest if it has weak terms or a buyer with no track record.
In most cash sales in South Carolina, the buyer pays the standard closing costs — title search, deed prep, recording fees, and the closing attorney — though it's negotiable and should always be spelled out in the purchase agreement. The seller is still responsible for: paying off any existing mortgage, satisfying liens or judgments, settling unpaid property taxes prorated through the closing date, paying any past-due HOA dues, and covering deed-stamp tax in some contracts (though buyers often cover this in cash deals). Compare that to a traditional sale where the seller typically pays 5–6% in agent commissions plus their share of title and prorations. Always review the settlement statement (HUD-1 / ALTA) before closing to confirm what's coming out of your proceeds.
The 70% rule is the standard formula cash investors use to calculate their maximum offer on a fix-and-flip property. The formula: Maximum Offer = (After Repair Value × 0.70) − Repair Costs. Example: a home worth $300,000 fully renovated (ARV) that needs $50,000 in repairs. Max offer = ($300,000 × 0.70) − $50,000 = $160,000. The 30% spread covers the investor's holding costs (taxes, insurance, utilities, loan interest during renovation), transaction costs (closing on the buy and the eventual resale, agent commissions on the resale), and profit margin. Some investors flex to 75% or 80% in hot markets with lower-risk properties; others stay at 65% on heavy rehabs. It's a guideline, not a law — the actual offer always depends on each investor's repair estimate, exit strategy, and capital cost.
ARV stands for After Repair Value — it's the estimated retail market value of a home after all renovations are complete and the property is in fully repaired, market-ready condition. ARV is the foundation of how cash investors price offers. Investors calculate ARV by pulling comparable sales ("comps") of similar renovated homes nearby — same neighborhood, similar size, beds/baths, and finish quality — that sold within the past 3–6 months. Then they apply the 70% rule: Maximum Offer = ARV × 0.70 − Repair Costs. Example: comps say a renovated version of your house sells for $280,000 (that's the ARV). It needs $45,000 in work. Max offer = ($280,000 × 0.70) − $45,000 = $151,000. ARV is a projection, not a guarantee — different investors may calculate slightly different ARVs based on their comp selection.
Most cash buyers in South Carolina pay between 60% and 80% of a home's After Repair Value (ARV) minus repair costs. The standard formula is the 70% rule: ARV × 0.70 − repairs = max offer. A $250,000 ARV home needing $40,000 in repairs would target around $135,000 cash. The exact percentage depends on: condition (light cosmetic vs. full gut), location (Chapin/Lexington vs. rural Newberry), exit strategy (flip, rental, wholesale), and current market velocity. Cash buyers offer below retail because they assume all the repair, holding, and resale risk — in exchange you get a fast as-is close with no commissions, repairs, or financing contingencies. Restoration Homes has been making cash offers across Lexington, Richland, Sumter, and Newberry counties since 2009 — you can request a free no-obligation offer to see your specific number.
Cash offers come in below retail market value because the buyer is taking on every risk and cost the seller would normally pass to the next homeowner. A cash buyer pays for repairs, holding costs (taxes, insurance, utilities, loan interest) during the renovation, transaction fees on both the buy and sell sides, and they need a profit margin to justify the capital and risk. Most cash investors use the 70% rule: ARV × 0.70 − repairs = max offer. The trade-off is speed and certainty — no inspections you have to fix, no buyer financing falling through, no 5–6% commission, no months of showings. For distressed homes, the net-to-seller can come out similar to a retail sale once you subtract repair concessions, commissions, and carrying costs.
A fair cash offer on a distressed home in South Carolina usually lands somewhere between 60% and 75% of the home's After Repair Value (ARV) minus the cost of repairs. Most cash buyers use a version of the 70% rule: ARV × 0.70 − repair costs = max offer. The discount covers repair risk, holding costs, closing fees, and the investor's margin. "Fair" doesn't mean retail — it means a price you can actually close on quickly, in any condition, with no commissions, no repairs, and no financing contingencies. Net to seller often comes out close to a traditional sale once you back out 5–6% commissions, repair concessions, and months of holding costs. Restoration Homes has been making cash offers on distressed properties across the Midlands of South Carolina since 2009 — you can request a no-obligation offer to see your number.
With most reputable cash buyers in South Carolina, the seller pays no commissions, no listing fees, no repair costs, and no marketing expenses. The buyer typically covers standard closing costs — title search, deed preparation, recording fees, and the closing attorney — though specifics depend on the contract. Sellers are still responsible for paying off any existing mortgage, liens, judgments, or unpaid property taxes from the sale proceeds (these aren't "fees" so much as debts attached to the property). Watch for red flags: a legitimate cash buyer should never charge an application fee, deposit, or upfront cost to the seller. Always read the purchase agreement carefully and confirm in writing who covers what at closing.
It depends on the home's condition. For a move-in-ready house in good shape, listing with a Realtor usually nets more — you'll likely get 95–100% of market value, even after the 5–6% commission. For a home that needs significant repairs, the math often flips. A cash offer at 65–75% of After Repair Value can net similar to a retail listing once you subtract: 5–6% commissions, repair concessions buyers demand after inspection, holding costs (taxes, insurance, utilities, mortgage) during 60–90 days on market, and the risk of buyer financing falling through. Cash sales also close in 7–14 days versus 30–45 for financed deals. Run the net-to-seller comparison on both: list price minus commissions and concessions, vs. cash offer with no fees.
iBuyers and cash investors both make cash offers, but they target different homes and price differently. iBuyers (Opendoor, Offerpad) use algorithm-driven offers, target move-in-ready homes in major metros, and typically pay closer to retail value — usually 90–98% of market — but charge service fees of 5–8% and require the home pass an inspection where they'll deduct repair costs from the offer. Cash investors (private buyers like Restoration Homes) buy any condition, including distressed and condemned, and use the 70% rule (ARV × 0.70 − repairs). Investor offers are usually 60–75% of ARV but come with no service fees, no inspection deductions, and as-is purchase. iBuyers fit clean homes; cash investors fit homes that need work. iBuyer coverage in SC is limited — most operate primarily in Columbia and Charleston metros.
Cities We Buy Houses In
Restoration Homes buys houses across the South Carolina Midlands. Browse our city-specific pages.
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