10/19/2026
How do cash home buyers decide what to offer you for your house? The instant answer many sellers think is that cash buyers just decide a really low-ball offer and make that to see if they can get it. While a few unscrupulous house buying "companies" may do that, most do not. Any company that has been in business for several years knows that we must have criteria for the real estate investments we make. After over 20 years, my company, Danny Buys Houses has a a good idea of what is needed to make a house purchase worth doing. Of course, this number we calculate must also make sense to the seller. We certainly do not buy every house we make an offer on, but we do close on every house where a seller agrees to sell to us. Honestly, the formula use is pretty simple. The complication can come in when coming up with an accurate number for each variable. We take what the house will likely sell for after we make all necessary repairs and updating. This is determined by looking at similar, recently sold properties in the immediate area (neighborhood or roughly half-mile radius). When then take 70% of that number. This is to give us 30% for insurance, property taxes, hoa fees, reselling costs, profit and other fees we will have while we own the property. You see how we snuck profit in there? Yeah, we want to make a profit. From this 70% number we subtract the costs we anticipate from the fix up and updating of the house. An easy example is a house that will sell for roughly $250,000 after updates. 70% is $175,000. If we will spend $40,000 on repairs and updating, we will offer $135,000 to buy the house for cash. If you would like to see a bigger breakdown with more examples of how we determine what we will pay for your San Antonio house, see our Valuation Methodology on our website.