Published October 6, 2026 by Divine Good Offers
The 70 Percent Rule
Most cash buyers start with the after repair value, called ARV. That is what your house would sell for fixed up, based on recent sales nearby.
The standard formula is: ARV times 0.70, minus repair costs, minus closing and holding costs. The result is the cash offer.
Example: a house with a $200,000 ARV and $40,000 in needed repairs. $200,000 times 0.70 is $140,000. Minus $40,000 in repairs and about $10,000 in costs gives a $90,000 offer.
Why the Offer Is Less Than Market Value
The gap covers real risk. The buyer pays for every repair, carries the house for months, and may find hidden problems behind the walls.
In exchange you get speed, certainty, and zero repair bills. No showings, no agent fees, no waiting. For many sellers that trade is worth it.
How We Price Your House
We show you the recent sales we used and the repair costs we counted. The number does not shrink at closing.
Want to see the math on your house? Call (516) 331-1907 or read about our company first.