The short answer
Cash home buyers pay less than full retail value, and there is no fixed percentage. The price depends on what the house should sell for once it is repaired, what that work costs, how long the buyer expects to hold it, what it costs to resell it and the margin the buyer needs. Two houses on the same street can get very different offers.
The number that matters to you is what you keep after the sale. So the right comparison is a written cash offer next to a written net sheet from a local agent, not a cash offer next to a listing price.
How a direct buyer prices a house
Most direct buyers, Roger included, work backward from the finished house:
- After-repair value. What the house should sell for in move-in condition, based on nearby sales.
- Minus repairs. Roof, furnace, foundation, plumbing, electrical, paint and flooring. A real estimate from walking the house, not a guess from the curb.
- Minus holding costs. Taxes, insurance, utilities and any financing while the work gets done and the house is resold.
- Minus resale costs. The commission, closing costs and concessions the buyer expects to pay when the finished house sells.
- Minus margin. The buyer's profit. A buyer who will not say that plainly is not being straight with you.
What is left is the offer. Condition is the biggest lever. A house that needs a roof and a furnace gets a lower number than one that needs paint and carpet, because the repair line is bigger.
What moves the number up or down
- Repair scope. Structural, roof, foundation and mechanical work cost more than cosmetics, and they also take longer, which raises holding costs.
- Location and recent sales. Neighborhoods in Jeffersonville, New Albany, Clarksville and Louisville with steady resale demand usually support a stronger after-repair value than a rural property with few comparable sales.
- Title and payoff. Liens, back taxes, probate or a mortgage payoff close to the value of the house do not change the method, but they decide whether the offer works at closing. Roger reviews the records before the offer is written so the number is not a surprise at the table.
- Occupancy and contents. A tenant in place, or a house full of belongings, changes the buyer's plan and sometimes the price.
- Who the buyer is. A buyer who assigns the contract to someone else builds in a second margin. Ask whether the person making the offer is the one closing on it.
Compare the offer with a listing, line by line
Do not trust anyone's sample math, including ours. Ask a local agent for a written seller net sheet and ask the cash buyer for a written offer that spells out who pays what. Then fill in this worksheet with real figures for your house.
| Line | Listing with an agent | Direct cash sale |
|---|---|---|
| Price | The agent's realistic sale price, not the list price | The written offer |
| Brokerage compensation | Whatever you negotiate with the listing broker, plus any buyer-broker compensation or concession you agree to | None |
| Seller closing costs | Ask the title company for an estimate | As stated in the contract |
| Repairs before the sale | Contractor quotes for what the agent says must be done | None required |
| Carrying costs while you wait | Your monthly mortgage, taxes, insurance and utilities, times a realistic number of months on the market plus the time to close | The same monthly costs from acceptance until the closing date the title company sets |
| Mortgage payoff, liens, taxes, prorations | From payoff letters; the same in either route | From payoff letters; the same in either route |
| Net to you | From the agent's written net sheet | The written offer minus the settlement items |
A few facts to keep in mind while you fill it in. Agent compensation is negotiable and not set by law. Since August 17, 2024, buyers sign written agreements with their agents and offers of buyer-agent compensation no longer appear on the MLS, so a listing agent should tell you up front what you would pay and whether you are expected to contribute toward the buyer's agent (National Association of Realtors). Which closing costs a seller pays depends on the contract and state law (CFPB). In Kentucky, the deed transfer tax is imposed on the seller at fifty cents for each $500 of value and is collected when the deed is recorded (KRS 142.050). Your payoff, liens, taxes and prorations come out of the price no matter who buys the house.
The side-by-side comparison of your selling options walks through the same lines in more detail.
When a lower price can still be the better deal
A cash offer makes sense when the gap between the offer and the listing net is smaller than it looks, or when time matters more than the last dollar:
- The house needs major work. If the repair line is large, the agent's net sheet shrinks by the same repairs or by the price cut buyers will demand instead.
- You are behind on payments with a sale date coming. A listing has no guaranteed timeline. See selling when you are behind on payments in Indiana or selling a Kentucky house in foreclosure.
- You inherited the house and live out of the area. Managing repairs, cleanouts and showings from a distance has a cost of its own. The inherited house guide covers the steps.
- Liens, code violations or title problems. Many buyers using a mortgage cannot close until these are cleared. A direct buyer can often work them into the closing. See code violations in Indiana and tax liens in Indiana.
- The listing already expired. If the house sat and did not sell, read what to do after an expired listing in Indiana or in Kentucky.
And when it usually is not the better deal: the house is in good shape, you have no deadline and you can carry it while it sells. In that case a good local agent will probably net you more, and Roger will tell you so.
How to tell a legitimate buyer from a bad one
- Proof of funds. Ask for a bank letter or statement showing the money is there. A buyer who cannot show it is probably planning to find the money, or another buyer, after you sign.
- Who is really buying. Ask whether the contract will be assigned to someone else. Assignment is not illegal, but it adds a middleman and a second margin.
- Closing costs in writing. Who pays what belongs in the contract, not in a conversation.
- A title company closing. Never sign a deed over at the kitchen table. The title company confirms ownership, pays off liens and pays you.
- No upfront fees. You should never pay a buyer anything to sell your house.
- Time to decide. A real offer stands long enough for you to get an agent's net sheet and compare.
What Roger pays and how it works
Roger Choate buys houses directly, as-is, in Louisville and Southern Indiana. He looks at the property and the records, then puts a written offer in front of you. There is no seller company fee and no agent commission. Your mortgage payoff, liens, taxes, prorations and other settlement items still come out of the price and show on the settlement statement.
A direct offer removes the buyer-financing and inspection contingencies. It does not remove title, lien, payoff, probate, court, lender or signature requirements, and the closing date is set once the title company has confirmed those. Roger does not guarantee a closing date, a lender approval or any outcome. Read how the process works or the questions sellers ask most.
Frequently asked questions
It depends on the contract. Who pays each closing cost is set by the purchase agreement and, in some cases, state law (CFPB). Some direct buyers cover most seller-side costs; others do not. Kentucky's deed transfer tax is imposed on the seller by statute (KRS 142.050), so look for who covers it in the contract. Get the cost split in writing before you sign.
Often, yes. If you have contractor quotes, a recent appraisal or nearby sales that support a higher after-repair value, show them. The buyer may move, or may explain why the number is what it is. A buyer who will not explain the offer at all is a reason to keep shopping.
Because the buyer is paying for the repairs, the holding period, the resale costs and the risk that you would otherwise carry, and needs a margin on top. A listing price is what a seller hopes to get for a finished house; a cash offer is a price for the house as it stands today.
Ask for proof of funds, ask whether they are the actual buyer or will assign the contract, insist on closing at a title company and never pay a fee up front. You can also check the county recorder's records for deeds in the buyer's name.
Rarely for a house that needs work, because the method above always subtracts repairs, holding, resale and margin. A house in good condition in a strong neighborhood will usually net more listed with an agent, and the honest answer from a direct buyer is to say so.
Related pages
- Compare a cash sale, a listing and other options side by side
- How long it takes to sell a house in Indiana
- The cost of holding an empty house
- We buy houses in Louisville and in Jeffersonville and Southern Indiana
General information only; not legal, tax or financial advice. Ask a licensed agent, a title company or an attorney about your sale.