How do cash investors calculate their offer price?
The standard formula: After-Repair Value (ARV) × 70% − Estimated Repair Costs = Maximum Offer. ARV is what the home would sell for fully renovated. The 70% factor covers the buyer's profit margin, carrying costs during renovation, and selling costs when they resell. Different buyers adjust the percentage based on market conditions and their strategy.
What is the 70% rule in real estate investing?
The 70% rule says an investor should pay no more than 70% of the After-Repair Value minus repair costs. Example: $300,000 ARV home needing $40,000 in repairs → maximum offer of $170,000. It ensures the buyer has enough margin to cover renovation, holding costs, selling costs, and profit while still closing a viable deal.
Why is a cash investor's offer lower than market value?
Because the investor is absorbing the cost and risk of repairs, paying carrying costs during renovation (taxes, insurance, interest), paying selling costs when they resell, and building in a profit margin. The discount isn't arbitrary — it's math. In exchange, you get speed, certainty, no repairs, and no commissions.
What does "After Repair Value" (ARV) mean?
ARV is the estimated market value of the property after it has been fully renovated. Investors determine it by pulling recent comparable sales of similar renovated homes in the same neighborhood. It's the starting point for the entire offer formula — everything else is subtracted from it.
Do I need a home appraisal when selling to a cash investor?
No. Cash buyers don't need a lender-ordered appraisal because there's no lender. They do their own valuation using comparable sales and a property walkthrough. This speeds up the process significantly — no waiting for an appraiser's schedule or dealing with appraisal gaps.
How do I know if a cash offer is fair?
Ask the buyer to walk you through their ARV comps and repair estimate. A transparent buyer shows their work. You can also pull recent sold prices in your neighborhood on Zillow or Redfin and subtract estimated repair costs yourself. Getting 2–3 offers gives you a real market price. A fair offer isn't necessarily the highest — it's the one from a buyer who will actually close.
Can I negotiate a cash offer from an investor?
Yes. Cash offers are not always take-it-or-leave-it. You can counter, point to strong comps, highlight low repair needs, or ask for better terms like a longer closing timeline or leaseback period. Not every buyer has room to move, but asking costs nothing.
Are there hidden fees when selling to a "We Buy Houses" company?
With a reputable buyer, no. The purchase price should be your net proceeds — no deductions, no surprise closing costs. Ask for a preliminary settlement statement before closing day to verify. Any buyer who refuses to show you the numbers in advance is a red flag.
How are closing costs split in a cash investor sale?
Texas Property Offer covers all standard closing costs. You pay nothing at closing — the offer amount is what you receive. This is one of the differences between a direct investor and an iBuyer like Opendoor, which charges service fees of 5–8% plus repair deductions.
How fast can a cash investor close on my house?
Texas Property Offer can close in as few as 7 days. Most closings happen within 14–21 days. The limiting factor is the title search, which takes 5–10 business days. We can also close in 45–60 days if you need more time to relocate.
What are the steps to sell a house to a cash buyer?
Step 1: Submit property info. Step 2: Buyer assesses condition. Step 3: Receive written offer the same day. Step 4: Accept and choose closing date. Step 5: Title company opens escrow and performs title search. Step 6: Sign closing documents. Step 7: Funds wired to you. Total time: 2–3 weeks typically.
Do I need to clean or repair anything before selling as-is?
Nothing. Don't spend money on repairs, cleaning, or staging before a cash sale. The offer accounts for condition as-is. Money spent on repairs rarely increases the cash offer dollar-for-dollar and is usually wasted.
Can I leave unwanted furniture or trash behind?
Yes. Take what you want and leave everything else. Texas Property Offer handles cleanout and disposal after closing. This is one of the most appreciated parts of the as-is process — no moving company needed for items you don't want.
How long can I stay in the house after closing?
Through a post-closing occupancy agreement (leaseback), you can remain in the home temporarily after closing — typically 7–60 days. You sell and receive funds at closing, then move on your own timeline. Texas Property Offer accommodates leaseback arrangements in most situations.
What documents do I need to sign to sell my home for cash?
The Purchase and Sale Agreement (contract), a seller's disclosure, the deed, and the closing/settlement documents prepared by the title company. Total paperwork is far less than a traditional sale — most cash closings are completed in under an hour.
Can a cash deal still fall through?
Yes, though it's rare with a credible direct buyer. The most common reasons: title issues discovered during the search, or a buyer who lacks actual funds (common with wholesalers). Using a legitimate direct buyer with verified proof of funds reduces this risk significantly.
What happens if the investor backs out during the inspection period?
If they back out within a valid contractual contingency window, they typically recover their earnest money. If they back out outside that window without cause, you keep their earnest money. Always review what contingencies are in the contract and how long the feasibility period lasts before signing.
How can I verify an investor's proof of funds?
Ask for a bank statement, letter of credit, or escrow confirmation from their financial institution — dated within the last 30 days and showing funds sufficient for your purchase price. A legitimate buyer provides this the same day. Stalling, offering screenshots, or refusing entirely is a red flag.
What are common red flags of real estate investor scams?
Pressure to sign immediately. Requests for upfront fees. Vague company identity. Dramatic price reductions right before closing ("bait and switch"). Refusal to provide proof of funds. Contracts with no title company named. "And/or assigns" language hiding a wholesaler. No physical address or verifiable reviews.
What is a wholesaling scam in real estate?
A wholesaler puts your home under contract at a low price with the intent to assign that contract to another investor for a fee — never actually buying themselves. It's not always a scam, but it becomes one when the wholesaler is dishonest about it, lacks a real buyer lined up, or ties up your property while shopping for one. Always ask: "Are you the end buyer?"
Should I ever pay an upfront fee to get a cash offer?
Never. No legitimate cash buyer charges anything before closing. Getting an offer, having your property evaluated, and going through the entire process should cost you zero. Any request for money upfront is a scam.
Is it legal for an investor to assign my contract to someone else?
In Texas, contract assignment is generally legal unless prohibited in the contract. The issue isn't legality — it's transparency. You deserve to know if a stranger will show up at closing instead of the person you negotiated with. Ask upfront, and add contract language requiring your written consent for any assignment.
What is the difference between a real estate wholesaler and a flipper?
A wholesaler puts your home under contract and sells that contract to another investor — they never actually buy the home. A flipper buys directly, renovates, and resells. Texas Property Offer is a direct buyer (flipper) — we are the end buyer on every transaction.
What is an iBuyer (like Opendoor) versus a local flipper?
iBuyers are tech companies using algorithms. They charge service fees of 5–8% plus post-inspection repair deductions, operate only in select markets, and only buy homes in good condition. Local investors like Texas Property Offer charge no service fees, buy any condition, and evaluate each property individually. Compare net proceeds — not headline prices.
Are fix-and-flip investors or buy-and-hold landlords better to sell to?
Landlords may offer slightly more for decent-condition properties because their renovation bar is lower. Flippers handle worse conditions (fire damage, foundation issues, full gut-jobs) that landlords avoid. Who's better depends on your property's condition and which buyer can actually close at the price they offered.
How do I know if an investor is the actual end buyer?
Ask directly: "Are you the end buyer, or do you assign contracts?" Request proof of funds from their own account. Ask which title company they use and confirm they've closed there before. A direct buyer answers all three immediately and confidently.
Can I sell an inherited house to an investor during probate?
Yes. Once the court grants authority to sell (Letters Testamentary or Letters of Administration), the executor can accept an offer and close through a title company. Texas Property Offer works with estate attorneys and is patient with probate timelines. Some probate sales require court approval of the sale price, which we accommodate.
How do I sell a house in foreclosure to a cash investor?
Contact a cash buyer as soon as you receive a Notice of Default — Texas processes non-judicial foreclosures quickly, sometimes within 30 days of notice. A cash buyer can close fast enough to pay off the mortgage, stop the foreclosure, protect your credit, and recover any remaining equity before the auction date.
Can I sell my house to an investor if I have tax liens?
Yes. Tax liens are paid from the sale proceeds at closing — the title company coordinates payoff with the taxing authority. As long as there's enough equity to cover the lien after the purchase price, the deal closes normally.
What if my house has active code violations or city fines?
We buy properties with active violations, failed inspections, and even condemned status. You don't need to resolve anything — violations are factored into the offer and become our responsibility after closing.
Can I sell a hoarder house to an investor without cleaning it?
Yes. Leave everything. We handle cleanout and disposal after closing. You take what you want and walk away. Hoarder conditions are something we deal with regularly across DFW.
Can I stop a foreclosure auction by selling to an investor quickly?
Yes — if you act before the auction date. Texas foreclosures can move fast. Call us immediately when you receive default or auction notices. We can often close in 7–14 days, which is enough time to stop the process if you start early.
What happens to my existing mortgage when a cash buyer purchases the home?
Your mortgage is paid off at closing from the sale proceeds. The title company obtains a payoff statement from your lender and distributes the funds. You receive whatever remains after the mortgage, liens, and any proration adjustments.
Do I have to pay capital gains tax when selling to an investor?
The same rules apply as any sale. If the home was your primary residence for 2 of the last 5 years, you can exclude up to $250,000 of capital gains ($500,000 married filing jointly) from federal taxes. Selling to a cash buyer does not change your tax treatment. Consult a CPA for your specific situation.
Do I still pay property taxes up to the day of closing?
Yes — taxes are prorated at closing. The title company calculates what you owe from January 1 through closing and adjusts the settlement statement. No separate payment is required from you.
Are there transfer taxes on investor cash transactions in Texas?
No. Texas has no state-level real property transfer tax, which keeps closing costs lower than in many other states. You'll see recording fees ($30–$75) but no percentage-based transfer tax.
Will selling below market value help me write off a loss?
On a primary residence, no — the IRS does not allow loss deductions on personal-use property sales. If it's a rental or investment property, a loss may be deductible subject to passive activity rules. Talk to a CPA before closing.
How do cash sales affect my personal income taxes?
You'll receive Form 1099-S from the title company reporting gross proceeds. Report the sale on Schedule D using Form 8949. If you qualify for the full primary residence exclusion, you may not owe anything and may not even need to report it. A CPA can confirm your specific obligations.
Should I list with a real estate agent or sell to an investor?
List with an agent if maximizing price is the priority and you have 60–90 days, can afford repairs, and can handle uncertainty. Sell to a cash buyer if you need speed, can't afford repairs, need certainty, or your situation (foreclosure, probate, divorce) makes a long listing impractical. Neither is objectively better — it depends on your situation.
How much money do I save by skipping agent commissions?
Traditional sales cost 5–6% in agent commissions. On a $300,000 home, that's $15,000–$18,000 gone before you see a dollar. Cash buyers charge no commissions. Even at a lower purchase price, you often net more after factoring out commissions, repair costs, and months of carrying costs.
Is it better to renovate and list or sell as-is for cash?
Renovation before a traditional listing can increase your net proceeds — but only if the renovation costs less than the price increase it generates, and only if you have the time and capital. For sellers who lack time, money for repairs, or certainty about the outcome, selling as-is for cash removes all that risk at the cost of some upside.
Do iBuyers charge service or hidden administrative fees?
Yes. iBuyers like Opendoor charge service fees of 5–8% of the sale price, then deduct repair costs after their post-contract inspection. These fees often make iBuyer net proceeds lower than a local direct investor with no service fee. Always compare net proceeds, not headline offer price.
How many cash offers should I get before deciding?
2–3 offers is ideal if time allows. More offers give you pricing leverage. But if you're facing foreclosure or need to close in under 30 days, chasing multiple offers may cost more time than the potential price difference is worth.
What questions should I ask an investor on our first phone call?
(1) Are you the end buyer or do you assign contracts? (2) Can you provide proof of funds today? (3) What is your typical timeline from offer to close? (4) What contingencies are in your contract? (5) Which title company do you use? (6) Have you bought homes in my neighborhood before?
Do local investors have better community track records than national chains?
Not automatically — but local investors are often easier to verify. You can check their Google reviews, confirm their physical presence in the area, and speak directly with the person closing. What matters most is that specific buyer's proof of funds, references, and contract terms.
Should I hire a real estate attorney for a cash sale?
In Texas you're not legally required to have an attorney — the title company handles the mechanics. But for complex situations (probate, multiple heirs, bankruptcy, large liens), a real estate attorney is worth the $150–$300 consultation fee.
Do investors care if a house has knob-and-tube wiring or old cast iron plumbing?
We price it in, we don't walk away. Knob-and-tube electrical and old cast iron drain lines are common in older DFW homes and make mortgage financing nearly impossible — which is exactly why cash buyers are often the only practical option for these properties.
Will a cash buyer take a house with a severe mold issue?
Yes. Mold remediation is a repair cost we absorb after closing. You don't need to treat or remediate anything before the sale. Disclose known mold issues and let us price it in.
Can I sell a house with fire damage to an investor?
Yes — fire-damaged properties are one of our most common purchase types. Partial fire damage, smoke damage, total loss structures — all can be purchased as-is. No board-up or remediation required before closing.
Do investors buy houses with illegal additions or unpermitted work?
Yes. Unpermitted additions are extremely common in DFW. They make traditional financing difficult or impossible, which is why cash buyers are often the only option. We factor permitting risk into the offer.
Will an investor buy a property with an old septic tank or private well?
Yes. We buy properties with private water and sewer systems without requiring inspections from you. The condition is factored into the offer. If you know of known failures, disclose them and let us price it in.
Do foundation cracks or structural issues stop a cash sale?
No. Foundation problems — slab cracks, pier and beam failures, significant settlement — are factored into the offer price, not used as a reason to kill the deal. Foundation repair is common and well-understood in DFW.
What is an earnest money deposit and how much should an investor put down?
Earnest money is a good-faith deposit the buyer places with the title company at contract signing. For cash investors, $500–$5,000 is typical depending on price. Higher earnest money signals stronger commitment — you keep it if the buyer backs out without a valid contract reason.
Should the transaction always go through a title company?
Always. A title company protects you by confirming clean title, paying off all liens, ensuring the deed records properly, and holding funds until transfer is complete. Never close a home sale outside of a licensed title company.
Can closing happen remotely via mobile notary or wire transfer?
Yes. Mobile notary closings are common in Texas — a notary comes to your location. Remote online notarization (RON) is also available in Texas for fully digital closings. Texas Property Offer accommodates whatever closing format works best for you.
What happens if the title search reveals an old unresolved lien?
The title company flags it and works to resolve it before closing. Small old liens are often cleared during the search process. Larger issues may delay closing. If a title issue can't be cleared, the title company cannot issue title insurance and closing can't proceed until it's resolved.
How long does a title search take on an investor purchase?
Typically 3–7 business days for a standard Texas residential transaction. Older properties, estates, or multiple-owner titles can take 7–14 days. Expedited searches are available at most title companies for a small additional fee, typically covered by the buyer.
Can I choose my own closing attorney or title company?
Yes. In Texas, sellers have the right to choose the title company. If you have a preferred company, insist on using them. Most buyers will accommodate this. Texas Property Offer works with any licensed Texas title company the seller prefers.
How quickly do cash funds clear in my bank account?
The title company wires funds on closing day after the deed records — typically within a few hours of signing. Same-day settlement if initiated before your bank's cut-off (usually 3–4 PM). Funds may arrive the next business day if closing runs late.
What do I do with my homeowners insurance after closing?
Cancel effective on your closing date — not before. You're still responsible for the property until the deed records. Call your insurer and request cancellation plus a prorated refund of any prepaid premium.
How do I cancel utility services after a cash sale?
Contact each utility provider and schedule cancellation effective on your closing date. Build in a one-day buffer — if closing is delayed 24 hours, you don't want to own a property with no working utilities. Transfer service to your new address at the same time if staying in DFW.
Do I need to notify the county tax assessor after selling?
The deed transfer is automatically recorded with the county clerk, which updates ownership records. You don't need to file separately. If you receive a tax statement after closing, forward it to the buyer and update your mailing address with the county appraisal district.
What documents should I keep for my records after closing?
Keep permanently: Closing Disclosure (HUD-1), signed purchase contract, deed transfer documents, Form 1099-S from the title company, and your original purchase documents (to calculate cost basis for taxes). Store physical and digital copies.
Can I use the cash proceeds to immediately buy another property?
Yes — no waiting period. If you're doing a 1031 exchange on an investment property, you must identify the replacement within 45 days and close within 180 days. This must be set up before closing through a Qualified Intermediary, not after.
What if there are multiple heirs and not everyone wants to sell?
All owners on the deed must consent — one heir cannot force a sale without the others. Options: buy out the unwilling heir, file a partition lawsuit (court-ordered sale), or continue negotiating. Texas Property Offer can work patiently with multi-heir situations but cannot close without all required signatures.
Can an investor buy a house with a squatter inside?
Yes. The squatter situation transfers to the buyer at closing — it becomes our responsibility, not yours. Texas requires a formal eviction process even for squatters (no self-help evictions). Disclose it upfront so we can factor it into the offer.
Do investors buy mobile or manufactured homes on rented land?
It depends on the title. If the manufactured home is on a permanent foundation with its title retired (converted to real property), it sells like any other home through a title company. If it's still titled as a vehicle, the transaction is different. We evaluate manufactured homes case by case.
What if my home is historically designated or in a historic district?
Historic designation limits renovation options but doesn't prevent a sale. It affects what a buyer can do with the property, which affects the offer. We review historic designations during our evaluation — if the renovation constraints are workable, we proceed.
Can an investor handle an active reverse mortgage on the property?
Yes. The reverse mortgage is paid off at closing from the sale proceeds like any other mortgage. If the balance exceeds the home's value, contact the loan servicer and a real estate attorney before proceeding — this situation is more complex.
How do boundary disputes or fence encroachments affect a cash closing?
Known boundary disputes can cloud title and delay or prevent closing. Options include a new survey, quit-claim deed from a neighbor, or legal resolution. Disclose any known issues upfront — surprises during the title search are harder to resolve than known issues addressed early.
Can a cash sale be completely private without a public MLS listing?
Yes. A sale to Texas Property Offer is entirely off-market — never listed on the MLS, Zillow, or any public platform. The deed transfer records with the county (public record), but the sale itself is private. No open houses, no strangers walking through, no advertising.