You Got a Cash Offer. Is It Fair — or a Lowball?
A cash offer only helps you if the number is honest. This is the checklist we’d give a family member evaluating any cash offer on a Fort Wayne house — including one from us. Ten minutes of homework tells you whether you’re looking at a fair deal or a lowball.
Step 1: Establish the House’s Real As-Is Baseline
Skip Zillow’s estimate — it prices your house as if it were updated. Instead:
- Pull 3-5 sold prices (not asking prices) for similar homes in your neighborhood from the last 6 months
- Separate them into “updated” and “needs work” sales — Fort Wayne flips and as-is sales are easy to spot from the listing photos
- Your after-repair value (ARV) is what the updated ones sold for; the as-is comps show what houses like yours actually trade at
Step 2: Reverse-Engineer the Offer
Every legitimate investor offer follows roughly the same formula — ARV × 70-85% minus repair costs. Plug in your numbers:
| If your ARV is… | …and repairs are… | Fair offer range |
|---|---|---|
| $150,000 | $20,000 | $85,000 – $107,000 |
| $200,000 | $30,000 | $110,000 – $140,000 |
| $250,000 | $15,000 | $160,000 – $197,000 |
An offer inside the range: fair. Below it: negotiate or walk. Suspiciously above it: watch for the re-trade (Step 4).
Step 3: Compare NET, Not Price
The right comparison is the cash offer versus what a traditional sale would net you after 6% commission, closing costs, the repairs (or equivalent price cut), and months of carrying costs — we broke down the full math in what it costs to sell in Fort Wayne and the cash vs. realtor comparison. On houses needing real work, the nets converge far more than the sticker prices suggest.
Step 4: Stress-Test the Buyer, Not Just the Number
A fair price from a buyer who won’t perform is worth nothing. Before signing:
- Proof of funds — a real cash buyer shows a bank statement or letter without flinching
- Earnest money — a serious deposit (not $100) held at the title company
- Inspection terms — a short look is normal; a 30-day “inspection period” is an option to tie up your house while they shop the contract
- No assignment games — ask directly: “Are you buying this yourself or assigning the contract?” Wholesalers aren’t automatically bad, but hidden wholesaling means the price had a middleman’s fee in it
- The re-trade red flag — high offer, contract signed, then “we found problems” and a $20,000 price drop a week before closing. Our scam red-flags guide covers the full pattern
Step 5: Get a Second Offer
The single best fairness test is competition. Two or three written offers take an hour to collect and instantly show you the market. Any buyer who pressures you to sign before you can compare is telling you their number doesn’t survive comparison.
Questions That Separate Fair Buyers from Predators
- “How did you arrive at this number?” — fair buyers show the math
- “Who pays closing costs?” — should be them
- “Any fees to me?” — should be zero
- “When is the earnest money deposited, and with which title company?”
- “What happens if you find something in inspection?” — the answer should be a specific, limited process, not a shrug
Get a Number You Can Check Our Math On
Indiana Home Solutions gives written offers with the formula shown — ARV, repair budget, our margin. Take it, compare it, get other offers. If ours is best, we close in 7-14 days.
Call (260) 203-0686 or request your free offer.
More Ways We Can Help
- The 70% Rule: How Offers Are Calculated
- 7 Cash Buyer Red Flags
- What’s My House Worth?
- Reviews from Fort Wayne Sellers