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
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.
Our Ethical Standard: The Maryland Seller Bill of Rights™
At MCHB, we believe every homeowner deserves a transparent, respectful sale—regardless of their property’s condition. As part of our Fair Offer Promise™, we adhere to a strict ethical code that differentiates us from unregulated wholesalers:
- The Right to “Open Book” Pricing: You deserve to see exactly how your offer was calculated, line-by-line.
- The Right to Zero Hidden Fees: We guarantee no last-minute “admin fees” or surprise commission deductions at the closing table.
- The Right to No-Pressure Advisory: You will never be coerced. If our Dual-Path™ Consultation reveals that listing with a Realtor is better for you, we will tell you.
- The Right to a Licensed Closing: We only close transactions through reputable, licensed Maryland title companies to ensure your funds and title are secure.
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 "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).
Is Our Offer Negotiable? The "Data-First" Review Process
We strive to give our highest and best offer upfront, but we know market data can vary. We want to be collaborative, not rigid.
The MCHB Offer Review Policy:
If you believe our repair estimates are too high, or if you have a recent comparable sale that supports a higher value, we want to see it.
- Have a contractor bid? Send it to us. If we overestimated the roof repair, we will adjust our offer up.
- Have a better appraisal? Share it. We are happy to correct our numbers based on verified data.
We don’t play “haggling games,” but we are always open to a Fair Value Adjustment based on real evidence.
The "Net Peace of Mind" Trade-Off
We are honest about the math: A Cash Offer provides speed and certainty, while a Market Listing provides maximum gross price.
We don’t want you to leave money on the table.
That is why we offer our Dual-Path™ Consultation.
- Path A (Cash): Ideal for Probate, resolving Pre-Foreclosure, or major repairs. You trade some equity for immediate liquidity and zero effort.
- Path B (Realtor): Ideal for clean homes with time to sell. Our in-house Master Agent, Debbi Rivero, can list your home to fight for top dollar.
You choose the path. We support the decision. If you have specific questions about which path is right for you, please contact us directly.
We offer this transparent, dual-path guidance 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 7-21 days. This speed is often the deciding factor for clients in our Pre-Foreclosure Resolution Program™ who need to beat an auction deadline.
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.
Expert Reviewed for Accuracy
To ensure you receive the most accurate and ethical guidance, the information on this page has been reviewed and verified by Debbi Rivero, a RE/MAX Master Agent with over 30 years of experience in the Maryland real estate market.
This is our commitment to providing you with trustworthy information so you can make a confident and informed decision.
Related Announcement
Read the official announcement: Consumer Advocacy Initiative (Press Release)