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What “We Buy Houses” Companies Really Do — From an Insider Who Actually Buys Them
If you’ve ever driven down a road and seen a sign that says “We Buy Houses — Cash!”, you’ve probably wondered: Who are these people? What do they actually do? And how do they come up with an offer?
As someone who runs a home-buying company that makes real, data-driven offers every single week — I want to break it down honestly, transparently, and with real insight into how we value homes and structure cash offer deals for homes.
Get Your No-Obligation Cash Offer Today!
What Is a “We Buy Houses” Company?
At the most basic level, “We Buy Houses” companies are real estate investors that purchase properties directly from homeowners — in as-is condition — for cash. These companies are typically looking for homes that:
- Need repairs
- Are unwanted or inherited
- Are behind on payments
- Sellers who need to sell before they buy
- Require a fast or flexible sale
Some companies flip houses themselves. Others wholesale the property to another investor who will then flip the property. Some are national franchises. Others (like us) are local — with deep knowledge of the cities we buy houses in.
What Services Do We Buy Houses Companies Offer?
Legit home-buying companies provide a few key services:
- As-is purchases: No repairs, no cleaning, no showings.
- Fast closings: Usually in 7–21 days, depending on title and logistics.
- Cash offers: No traditional bank loans involved & No appraisals needed.
- Certainty: No last-minute financing issues since the offer is cash.
- Flexible timelines: Close on your schedule.
But here’s the thing: Not all companies are the same. Some overpromise and underdeliver. Others (like ours) are licensed, local, and make offers based on clear, consistent math — not gut feeling that leads to a re-negation once under contract.
How Do We Come Up With An Offer For Your Home?
This is the part no one really explains — but I will.
At Turner Home Team, every offer we make starts with one number: the After Repair Value (ARV). That’s what we think the house will be worth after it’s fully renovated and ready to list on the MLS.
Then we subtract everything it will take to get it there — and still leave a reasonable profit buffer. Our formula is public, consistent, and verified:
MAO ( MAX Allowable Offer) = ARV – (Rehab + Closing Costs + Loan Points + Holding Costs + Profit)
Let’s break that down:
- Rehab: Based on the home’s actual condition — we use a detailed square-footage model and system-level repair costs (like roof, HVAC, crawlspace, etc.).
- Closing Costs: We assume standard resale commissions and legal costs.
- Loan Points: Based on what hard money lenders charge us on the purchase + rehab total.
- MAO: This stands for Max Allowable Offer which is the most our company can pay for your home.
- Holding Costs: Insurance, taxes, utilities — we estimate five months of hold time.
- Profit: Typically aiming for 15% of ARV.
Every line item is real. Every dollar is accounted for, all in the name of transparency.
Why Some Cash Offers Are Lower Than You Expect
Sometimes sellers ask, “Why is your offer lower than what Zillow says my home is worth?”
Here’s the truth:
- Zillow doesn’t account for LOTS of things in their Zestimates. Things such as repairs, outdated systems, lack of garage, exterior work needed, and other miscellaneous things Zillow cant possibly know without seeing your property inside and out in person. It also doesn’t account for the fact that we pay for all of your closing cost and commissions.
- We’re not listing your house — we’re buying it today and taking on all the risk.
- Our offers factor in what a property really needs: roof? HVAC? Crawlspace issues? These are real costs, not guesses.
But the benefit is — you don’t have to fix anything. No agents. No inspections. No waiting. Our offer is a guaranteed cash offer, not a “best guess.”
Are All Cash Home Buying Companies the Same?
Not even close.
BEWARE: Some wholesalers tie up properties they never intend to buy. Some make “bait-and-switch” offers they later renegotiate. What this means is that they will make you a higher offer to get you under contract, and then come back and try to beat you down on price later once they find out no other investor is willing to buy the home from them for that price. They NEVER intended to buy the home from you, but instead wanted to be a middle man and sell your properties “contract” to another investor and let them purchase it for a fee. They hardly ever disclose this upfront to the sellers, and often end up canceling the contract after the fact.
At Turner Home Team:
- We are LOCAL.
- We use a proven, transparent formula for every offer.
- We work are licensed agents / Realtors.
- We show you all the math if you want to see it.
- WE ACTUALLY BUY THE HOUSE– We do not do Bait & Switch offers to try and beat you down on price later if we cant find a end buyer (We are the end buyer).
Final Thoughts: A Cash Offer Isn’t Always Right — But It Can Be Thing For You Depending on your situation.
Cash buyers like us aren’t for everyone. Homes in need of updating or repairs are prime candidates for companies like ours. If your home is in really good shape and you’ve got time to list, you will be able to sell for more on the open market. And I’ll tell you that honestly (We would love to help you do so with one of our licensed Realtors that work for us).
But if you want speed, certainty, to make no repairs, and want a no-hassle sale, working with a company like Turner Home Team can be the simplest way to sell — without the headaches.
And now you know exactly how we do it.
Get Your Offer Now!
START HERE: We buy properties in ANY CONDITION.
Ready to see what your home could be worth as-is?
Reach out today — we’ll walk the house, show you the numbers, and make an offer you can trust.
About The Author:
Justin Turner is both a Licensed General Contractor and Licensed Real Estate Broker. He has been an active real estate investor in the North & South Carolina. He graduated Summa Cum Laude from East Carolina University with a degree in finance. He has transacted
