How Much Do Cash Home Buyers Pay in Texas?

Cash home buyers in Texas typically pay between 50 and 85 percent of a property’s after-repair value, minus the cost of repairs. Where an offer lands in that range depends mostly on what kind of buyer you are talking to. Franchise investors commonly underwrite toward the low end, direct independent buyers like us typically target the higher end, and the difference on an ordinary Texas house can be tens of thousands of dollars.

Nobody can tell you the exact number for your house in a blog post. What we can do is show you the formula every serious cash buyer uses, so you can check any offer yourself.

The Formula Every Cash Buyer Uses

Cash offers are built on after-repair value, or ARV: what your house would sell for on the open market fully fixed up, based on nearby sold comparables.

The offer is the ARV, multiplied by the buyer’s target percentage, minus the realistic cost to get the house to that fixed-up condition. The percentage covers the buyer’s holding costs, closing costs on both their purchase and their eventual resale, financing, risk, and profit.

A Worked Example

Say you own a house in Fort Worth that would be worth $300,000 fully renovated, and it needs $40,000 of work: roof, HVAC, flooring, paint.

A buyer underwriting at 80 percent of ARV offers $300,000 times 0.80, minus $40,000, which is $200,000.

A franchise buyer underwriting at 60 percent of ARV offers $300,000 times 0.60, minus $40,000, which is $140,000.

Same house, same repairs, $60,000 apart. That is why the single most profitable thing a Texas seller can do is get more than one cash offer. Our guide to how we determine our cash offer walks through our version of this math line by line.

Why the Percentage Varies by Buyer Type

• Franchise networks. Each operator pays franchise fees and royalties on every deal, and that overhead comes out of the offer. The 50 to 70 percent range is common.
• Wholesalers. They contract your house and flip the contract to an end investor for a fee. The fee lives inside your price, and the deal depends on them finding that investor. If a buyer cannot show proof of funds, this is usually who you are talking to.
• iBuyers. Algorithmic buyers pay closer to market on clean, newer homes but charge a service fee that commonly runs 5 to 14 percent and renegotiate after inspection. They rarely buy houses needing real work.
• Direct independent buyers. No franchise fees, no contract-flipping, no service fee. That structure is what lets a direct buyer underwrite at the top of the range. It is the category we are in: we target 75 to 85 percent of ARV on most Texas purchases.

What Pushes Your Number Up or Down

Within any buyer’s range, your house lands higher when the repairs are cosmetic rather than structural, the neighborhood has strong recent comps, and the title is clean. It lands lower when the work is heavy (foundation, fire, full systems), the comps are thin, or there are liens and probate complications to clear. Honest buyers will show you which of these moved your number; ask.

Five Questions That Expose a Lowball

1. What ARV did you use, and which sold comps support it?
2. What repair budget did you assume? Ask for the line items.
3. Are there any fees deducted from this offer? The answer should be none.
4. Who pays closing costs? (With us, we do. Here is how closing costs normally work in Texas.)
5. Can you show proof of funds? A real buyer can, the same day.

Any buyer who will not answer all five is telling you something.

Get a Real Number

We are Oxbow Home Solutions, a founder-operated direct buyer based in Grapevine. Send the address and we will put a written offer in front of you within 24 hours, with the ARV, the repair assumptions, and zero fees, so you can compare it against anyone. We buy in Dallas, Fort Worth, Houston, San Antonio, Austin, and every Texas metro. Our net proceeds calculator will show you what you actually keep under each option.

Frequently Asked Questions

Do cash buyers ever pay full market value in Texas? Not for as-is houses, no. The discount pays for speed, certainty, repairs, and the buyer carrying the resale risk. Anyone promising full retail in cash for a house needing work is usually planning to renegotiate before closing.

Is 70 percent of ARV a fair offer? It is the classic investor rule of thumb, and for heavy-rehab properties it can be fair. For lighter projects, direct buyers can often do better than 70. The comparison that matters is the actual dollar number net of all fees, not the percentage label.

Why did two cash buyers give me very different offers? Different ARV opinions, different repair estimates, or different overhead. Ask each one for their comps and repair budget and the gap usually explains itself.

Do higher offers mean a buyer will renegotiate later? Sometimes, and it is the oldest trick in the business: win the contract high, grind the price down after inspection. Ask whether the offer is contingent on a later inspection adjustment. Ours is not; the number we sign is the number you receive.

Does selling for cash change my taxes in Texas? No. The IRS treats cash and financed sales identically, and Texas has no state income tax or transfer tax. See our tax guide for cash sales for how the primary-residence exclusion works.