Every homeowner comparing a cash offer against their home’s estimated market value eventually asks the same question: what percentage am I actually looking at here? The honest answer involves more range than a single number can capture, and understanding why helps you evaluate whether a specific offer genuinely falls within a reasonable band or somewhere it shouldn’t.

The Typical Range You Should Expect

Cash offers generally land somewhere between 70 and 85 percent of a property’s After Repair Value, before any repair cost deductions are applied on top of that percentage. This range reflects the buyer’s need to cover repair costs, holding expenses, and a reasonable margin for the risk and capital they are putting in.

Why This Is a Range, Not a Fixed Number

A property in excellent condition needing minimal repairs often sees an offer landing toward the higher end of this range, since the buyer’s risk and expected repair investment are both considerably lower. A property needing extensive work often sees an offer closer to the lower end, reflecting the larger repair investment and correspondingly higher risk the buyer is taking on.

Why Comparing This Percentage Across Buyers Gets Complicated

Two buyers might both operate within this general 70 to 85 percent range, yet still land on meaningfully different final numbers, since the underlying After Repair Value they each calculated, and the specific repair costs they estimated, can differ even before this percentage gets applied.

What Falls Outside a Reasonable Range

An offer well below 70 percent of a reasonably calculated After Repair Value, without a corresponding, clearly explained reason like extensive necessary repairs, deserves real scrutiny. This does not automatically mean something is wrong, but it is worth asking directly why the percentage landed where it did.

How This Percentage Interacts With Repair Costs

This percentage gets applied before repair deductions are subtracted, meaning the final offer you actually receive reflects both this percentage and the specific dollar amount of needed repairs, two separate calculations working together rather than one single number doing all the work.

Breaking Down How Repair Costs Get Calculated Separately

The math on repair cost deductions explains this second half of the calculation in detail, worth understanding alongside this percentage range since both pieces together determine your actual final offer.

Using This Range to Evaluate Your Own Offer

Knowing that 70 to 85 percent represents a reasonable range gives you a genuine benchmark to compare against, rather than evaluating an offer purely on gut feeling about whether the number sounds fair.