Wondering if cash home buyers actually pay fair prices? Many Wichita homeowners are skeptical about cash offers, assuming they must be lowball scams. Jason Lavender and Connor at Harmony Home Buyer believe in complete transparency and want to show you exactly how we calculate our offers. Here’s the real math behind cash home buying and why our offers often net sellers more money than traditional sales after all costs are considered.
The Myth of “Lowball” Cash Offers
Why Homeowners Are Suspicious
“We understand the skepticism,” explains Jason Lavender. “Homeowners see cash offers that are 70-85% of market value and immediately think they’re being ripped off. But they’re not seeing the complete financial picture of what traditional sales actually cost.”
Common Misconceptions:
- Cash offers are always unfair compared to market listings
- Real estate agents get better prices for sellers
- Market value equals net proceeds in traditional sales
- Cash buyers are trying to steal properties from desperate sellers
- Any offer below asking price is automatically a bad deal
The Truth About Market Value vs. Net Proceeds
Connor notes: “Market value is what a house might sell for under perfect conditions. But most sellers never receive market value after paying commissions, repairs, carrying costs, and closing fees.”
Reality Check:
- Listed price ≠ sale price ≠ net proceeds
- Cash offers focus on actual money in your pocket
- Speed and certainty have financial value
- Risk elimination provides tangible benefits
- Transaction costs can consume 10-20% of sale price
Breaking Down Traditional Sale Costs in Wichita
Real Estate Commission Reality
Standard Wichita Commission Structure:
- Listing agent: 3% of sale price
- Buyer’s agent: 3% of sale price
- Total commission: 6% of sale price
Commission Cost Examples:
- $100,000 home: $6,000 in commissions
- $150,000 home: $9,000 in commissions
- $200,000 home: $12,000 in commissions
- $250,000 home: $15,000 in commissions
“On a $150,000 home, commission alone costs more than most people’s annual car payments,” explains Jason.
Seller Closing Costs
Typical Seller Expenses:
- Title insurance: $800-$1,500
- Attorney fees: $500-$1,200
- Transfer taxes: $200-$800
- Recording fees: $150-$400
- Survey costs: $400-$800
- Home warranty: $400-$800
Total closing costs: Typically 2-3% of sale price
The Real Math: $150,000 Wichita Home Example
Traditional Sale Breakdown
Assumed sale price: $150,000
Subtract costs:
- Real estate commission (6%): -$9,000
- Seller closing costs (2.5%): -$3,750
- Pre-sale preparations: -$5,000
- Carrying costs (2 months): -$2,000
- Inspection repairs: -$2,500
Net proceeds: $127,750
Our Cash Offer Comparison
Cash offer: $135,000
Subtract costs:
- Real estate commission: $0
- Closing costs: $0 (we pay them)
- Preparations: $0 (we buy as-is)
- Carrying costs: $0 (close in 2 weeks)
- Repairs: $0 (we handle after purchase)
Net proceeds: $135,000
Result: Cash sale nets $7,250 MORE than traditional sale
How We Calculate Our Cash Offers
Step 1: Current Market Analysis
What We Research:
- Recent comparable sales in your neighborhood
- Current active listings and their pricing
- Days on market trends for similar properties
- Seasonal market conditions affecting pricing
- Neighborhood appreciation patterns over time
“We use the same MLS data that real estate agents use,” explains Connor. “Our market analysis is just as thorough as any agent’s comparative market analysis.”
Step 2: Property Condition Assessment
Detailed Evaluation:
- Structural integrity and major systems
- Cosmetic updates needed for market appeal
- Code compliance issues requiring attention
- Safety hazards that must be addressed
- Efficiency improvements that add value
Professional Estimates:
- HVAC system repairs or replacement
- Roofing condition and remaining life
- Electrical updates for safety and code
- Plumbing repairs and modernization
- Flooring replacement or refinishing needs
Transparency in Action: Real Wichita Examples
College Hill Fixer-Upper
Property Details:
- 3-bedroom, 2-bath: 1,400 sq ft
- Built in 1955: Original hardwood floors
- Needs updating: Kitchen, bathrooms, electrical
Renovation Requirements:
- Kitchen remodel: $15,000
- Bathroom updates: $8,000
- Electrical upgrade: $4,000
- Paint and flooring: $6,000
- Total: $35,000
Our Calculation:
- Expected resale: $175,000
- Renovation costs: -$35,000
- Carrying costs: -$3,000
- Transaction costs: -$12,000
- Reasonable profit: -$15,000
- Our offer: $110,000
West Wichita Move-In Ready Home
Property Details:
- 4-bedroom, 3-bath: 2,200 sq ft
- Built in 1998: Well-maintained condition
- Minor cosmetic: Paint and carpet cleaning needed
Our offer: $210,000
Traditional sale estimate: $221,400 net
Honest Recommendation:
Traditional sale would net $11,400 more, making it the better choice for this seller. We explained this honestly and recommended they list with an agent.
The Value of Speed and Certainty
Traditional Sale Risks:
- 3-6 month timelines creating stress and uncertainty
- Deal failures requiring restart of entire process
- Market fluctuations affecting final sale price
- Repair demands from younger buyers
- Showing requirements disrupting daily life
Cash Sale Benefits:
- Guaranteed closing within 2-3 weeks
- Known timeline for planning next steps
- No repair requirements – sell as-is
- Private process without constant showings
- Certain outcome for financial planning
“Some sellers tell us the certainty alone is worth accepting a lower price,” explains Connor. “They value knowing exactly when they’ll close and how much they’ll receive.”
Our Commitment to Fair Dealing
What We Always Provide:
- Written offer explanations showing all calculations
- Market data supporting our pricing decisions
- Contractor estimates for any required repairs
- Timeline commitments with guaranteed closing dates
- References from recent satisfied clients
- No-pressure philosophy encouraging consultation
“Pressuring homeowners into bad decisions would destroy our reputation and community relationships,” explains Connor. “We succeed by providing genuine value and fair treatment.”
Questions to Ask Any Cash Buyer
Pricing Questions:
- 1. How did you determine this offer amount?
- 2. What comparable sales did you use?
- 3. Can you provide contractor estimates?
- 4. What’s your profit margin?
- 5. Would you recommend alternatives?
Process Questions:
- 1. How many houses have you purchased?
- 2. Can you provide references?
- 3. What’s your average closing time?
- 4. Do you ever fail to close?
- 5. What if problems arise?
Company Questions:
- 1. How long in business?
- 2. Do you have a physical office?
- 3. What’s your BBB rating?
- 4. Can I see renovation examples?
- 5. Who handles closing?
The Bottom Line on Fair Cash Pricing
“Fair doesn’t always mean highest price,” explains Jason. “Fair means honest pricing that reflects real market conditions, actual costs, and the value we provide through speed, certainty, and convenience.”
What Fair Cash Offers Include:
- Honest market assessment based on current conditions
- Realistic repair estimates from qualified contractors
- Transparent cost calculations showing all factors
- Reasonable profit margins for sustainable business
- Genuine value proposition for sellers’ specific situations
Ready for a Transparent Cash Offer?
If you’re curious about what your Wichita home might be worth in a cash sale, we’d be happy to provide a detailed, transparent analysis with no pressure or obligations.
Free Property Analysis and Fair Cash Offer
Contact Harmony Home Buyer today for an honest assessment of your property and a detailed explanation of how we calculate our offers.
Call Jason or Connor
(316) 217-9675
OR
Visit Online
Transparency builds trust, and trust builds lasting business relationships. Harmony Home Buyer has built our reputation on fair dealing, honest pricing, and providing genuine value to Wichita homeowners. Let us show you exactly how we calculate our offers and whether a cash sale makes sense for your specific situation.
Harmony Home Buyer
Your Trusted Wichita Cash Home Buyers
(316) 217-9675
harmonyhomebuyer.com
Serving Wichita & Sedgwick County, KS