Our Fair Offer Promise™: A Transparent Breakdown
No Secrets, Just a Simple Formula
Your Home's After Repair Value (ARV): Uncovering the true market potential of your property.
The Real Cost of Repairs (COR): A transparent look at the materials and labor needed.
Our Operating Costs: The expenses we handle so you can sell without hassle or fees.
How a Fair Cash Offer is Actually Calculated
Page content by Justin Mitchell, Founder • Fact-checked by Debbi Rivero, Licensed MD REALTOR®
Reviewed: Dec 18, 2025 • Last updated: Dec 18, 2025
Hi there, I’m Justin, the owner of Maryland Cash Home Buyers. I know that one of the most stressful parts of selling a home to an investor is the uncertainty: “Am I getting a fair price?” It’s a crucial question we believe every homeowner should ask, and it’s a key part of how to choose a legitimate home buyer.
You deserve total clarity. At Maryland Cash Home Buyers, our Fair Offer Promise™ is to pull back the curtain and show you exactly how we determine our offers. This isn’t a sales pitch; it’s an open-book guide to the real numbers involved in selling your house for cash in Maryland.
Ready for a Fair & Transparent Offer?
Now that you understand the mechanics of a fair cash offer, the next step is to see how those numbers apply to your unique property. We know that every homeowner’s situation is different, and a real-world example is often the clearest way to see if this path is right for you. If you’re ready, we can provide a clear, no-obligation offer tailored to your specific home and circumstances, with absolutely no pressure to accept.
The Simple Formula We Use for Every Maryland Home
It’s in Our Best Interest to Give You Highest Possible Offer
Our goal is to create a fair, win-win outcome. The only way to do that is to ensure you are fully informed and comfortable with the process from the very start. Below, you’ll find the exact formula we use—the same one used by most professional, legitimate home buyers. We’ll define the key terms, walk through a real–world example, and empower you with the knowledge to evaluate any cash offer you receive, whether it‘s from us or another company.
The Financial Benefit of a Direct Sale
The most significant financial advantage of working with a direct home buyer like us is the complete elimination of the typical costs associated with a traditional sale. Because we buy your house directly, there is no need for middlemen, which means you avoid paying for:
- Agent Commissions: (Typically 5-6% of the sale price)
- Closing Costs: (Often 2-3% of the sale price)
- Inspection & Repair Fees: (We buy “as-is,” so you don‘t pay for repairs)
- Staging & Marketing Costs: (No need to prepare your home for showings)
All of these avoided expenses are factored into the value of our offer, allowing you to keep more of your home’s equity without any out–of–pocket costs.
A Hypothetical Offer Example: Putting It All Together
Imagine your hypothetical house that you want to sell.
Now, also imagine a neighbor’s house, very closely comparable or identical to yours, located in the same neighborhood.
Imagine that your neighbor recently renovated this house and sold it for $425,000.
Buying a house is an investment, and like any smart investment, the numbers have to make sense. We don’t guess at your offer; we engineer it.
To determine what we can pay for your home today, we first have to calculate what it will be worth after we invest the capital and labor to restore it. Below are the four critical variables we use to build your offer—defined clearly so you know exactly where every dollar goes.
The Simple Formula We Use for Every Maryland Home
Let’s Review the Numbers….
[Your Offer] = [After Repair Value] – [Cost of Repairs] – [Our Selling Cost] – [Our Minimum Profit]
Important Terms Defined
After Repair Value (ARV):
This is the projected market value of your house after we buy it and complete a full renovation to 2025/2026 retail standards. We base this on comparable “sold” homes in your neighborhood that have been recently updated.
Cost of Repairs (COR):
This is the strict budget for materials and labor needed to fix up the property. This includes everything from new roofs and HVAC systems to cosmetic updates like flooring and paint. We buy “As-Is,” so we take on 100% of this cost and risk.
Our Selling Costs:
Even though we buy directly from you without an agent, we do use an agent to resell the house after we fix it. We have to pay 6% in commissions, plus Maryland transfer taxes, holding costs (insurance/utilities), and closing fees. These costs typically total 10% to 12% of the final resale price.
Our Minimum Profit:
This is how we stay in business. But here is our advantage: We operate on a Volume Model.
Most amateur flippers need a massive “home run” profit on a single deal to survive, forcing them to offer you less. Because we are an efficient local business doing multiple deals a month, we can accept a smaller profit margin per house. This efficiency allows us to squeeze the numbers in your favor and pay significantly more than the competition.
How We Generate This Offer (4-Step Process)
- Determine ARV: We analyze recent sales of fully renovated homes in your neighborhood to find the "After Repair Value."
- Subtract Repairs: We deduct the estimated labor and materials needed to bring the home to 2025 market standards.
- Deduct Selling Costs: We remove the commissions, taxes, and holding costs we will pay when we eventually resell the home.
- Calculate Net Offer: The remaining balance (minus our standard business profit) is your fair cash offer.
Now We Are Ready to Present Our Hypothetical Offer
The Maryland "Statewide" Breakdown
Based on Maryland REALTORS® Median Sales Data (Late 2024/2025)
The Formula: [Offer] = [ARV] − [Repairs] − [Selling Costs] − [Profit]
- After Repair Value (ARV)
Projected retail value (Oct/Nov 2024 Median).$425,000 - (-) Cost of Repairs (COR)
Cosmetic updates & systems (Not a full gut).- $65,000 - (-) Our Selling Costs (10%)
Agent Comms, Transfer Taxes, Holding Costs.- $42,500 - (-) Our Minimum Profit
Sustainable business margin (~10.5%).- $45,000 - = YOUR CASH OFFER(Net Cash to You at Closing)$272,500
| Line Item | Amount |
|---|---|
| ARV (Market Value) | $425,000 |
| (-) Repairs | - $65,000 |
| (-) Selling Costs | - $42,500 |
| (-) Profit | - $45,000 |
| = Net Offer | $272,500 |
1. ARV: Based on Oct 2024 Median Sales Price (MD Realtors).
2. Repairs: Est. ~$36/sq.ft for mid-range renovations. Verified against national averages (HomeGuide 2025 Data).
3. Selling Costs: Includes ~5.5% Commissions, Transfer Taxes, and Holding Costs.
4. Profit: MCHB minimum business viability margin (approx 10.5%).
This is how the math works for every property. The only difference is your home’s unique numbers. Now that you’ve seen our transparent formula, the next step is to see what we can offer for your house, with no obligation and no pressure.
"The 'Higher Offer' Mechanics: How We Do It"
In-House Renovation Crews
Amateur investors hire expensive general contractors. We have long-standing relationships with local Maryland crews and material suppliers. Because our renovation costs are lower, we can add those savings directly to your offer price.
No Corporate Bloat
We don’t spend millions on Super Bowl ads or massive corporate offices like the big “iBuyers.” We are a lean, local operation. Low overhead means we don’t need to lowball you just to pay for a marketing department.
Volume Over "Home Runs"
Most flippers need to make a massive profit on one deal to survive. We operate on volume. We are happy making a smaller, fair profit margin per house because we do more deals. This allows us to squeeze the numbers in your favor.
The "Highest Price" Myth: What You Actually Keep
It’s natural to look at a Zillow estimate of $425,000 and feel like a cash offer is “low.” But a high listing price comes with high costs. When you add up Agent Commissions (6%), Seller Closing Costs (~2-3%), and mandatory repairs, it is common for 10% to 12% of your sale price to disappear at the closing table.
We believe in looking at the “Net Pocket” number—the actual cash you walk away with. Compare the breakdown below to see how our offer competes directly with a “high” retail price once these expenses are removed.
The True Cost of Selling: Retail vs. MCHB
Most sellers forget the "Split Costs." Here is the Net Sheet for a $425,000 Maryland home.
Sources: Commissions Data (Clever), Transfer Tax Guide (MSBA), Staging Costs (Redfin).
The Logic Behind Our Offer: A Win-Win Approach
Our offer is a direct reflection of the math we’ve outlined above: the home’s potential market value, minus the necessary costs to get it there. This straightforward formula is how we ensure we can run a sustainable local business while providing you with the strongest possible offer.
We believe the best transactions are the ones where everyone walks away feeling good about the outcome. By being transparent with our numbers, our goal is to present you with an offer that is not only fair and competitive but also makes logical sense for your specific situation. If you have any specific questions about our process, please don’t hesitate to contact us directly.
This same fair, transparent formula is the foundation of every offer we make across our entire Maryland service area. While we proudly serve all 23 counties, our deep local expertise is particularly valuable for homeowners in our primary markets, including Anne Arundel County, Baltimore County, Frederick County, Howard County, Montgomery County, and Prince George’s County.
Unfiltered Answers: Fees, Taxes & The "Catch"
Understanding the math is step one. But you likely have questions about the logistics—like who handles the paperwork, how fast we can close, and whether this is truly “legit.” We don’t believe in scripted answers. Here is the straight truth about how the process works in Maryland.
How do cash home buyers calculate their offer in Maryland?
Most legitimate Maryland buyers start with the After Repair Value (what your house is worth fully renovated), then deduct the actual cost of construction and their selling expenses (roughly 10%). At Maryland Cash Home Buyers, we show you this "Net Sheet" openly so you can verify the math yourself.
Who pays the Transfer and Recordation Taxes?
In a traditional Maryland sale, these taxes (which can range from 1.5% to 2.5% of the sale price) are customarily split 50/50 between buyer and seller. When you sell directly to us, we can cover the full seller-side transfer and recordation tax bill, potentially saving you $3,000–$6,000+ at closing.
Are there any hidden fees or agent commissions?
Because we are direct buyers and not real estate agents, you avoid the standard ~5-6% Realtor commission. We also cover all standard settlement fees charged by the title company (typically handled by Courthouse Title or your preferred local settlement officer).
Is selling for cash faster than listing on the MLS?
The average "Days on Market" for a listed home in Maryland is often 45-75 days (plus 30-45 days for buyer financing). Because we use our own funds and do not rely on bank approvals, we can close in as little as 7-14 days—or on whatever specific date you choose.
Are "We Buy Houses" companies in Maryland legitimate?
We are a local Maryland business, not a faceless national chain. Our transactions are overseen by licensed professionals (including Debbi Rivero, MD Realtor #320362) to ensure strict ethical standards. Always ask for "Proof of Funds" and a clear contract before signing anything.
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