A cash offer on a Baltimore house will almost always be lower than what the same house could bring on the open market, because the buyer has to fix it, carry it and still make money. What you get in return is speed, no repairs, no showings and fewer ways for the deal to fall apart. The right choice comes down to two numbers: your net from the cash offer and your net from a listing, after repairs, time and costs.
I’m Stephen Wilson, team lead at The Wilson Home Team of Samson Properties. I also own a renovation company, so I’m used to pricing houses the way investors do. If you want both numbers for your house, start with a free home value request and ask for the as-is figure too. You can read more about how we list homes on our seller page.
How cash buyers price
Most investors work backward from what the house will sell for once it’s fixed up, called the after-repair value, or ARV. The math looks roughly like this:
ARV - repair costs - holding costs - selling costs - profit = their offer
- ARV. Recent sales of renovated houses close to yours.
- Repair costs. Their estimate of what it takes to bring the house up to that level, plus a cushion for surprises.
- Holding costs. Taxes, insurance, utilities and loan interest for the months they own it.
- Selling costs. Commission, transfer and recordation taxes and settlement costs when they resell. In Baltimore City, the transfer and recordation taxes alone come to 2.5% of the price before the state tax, per the Department of Legislative Services’ fiscal 2027 tax rate tables.
- Profit. What makes the project worth their time and risk.
None of that is unfair. It’s just how a renovation business has to buy. But it means the more work your house needs, the further the cash offer sits below its retail value.
A worked example
Every number below is made up to show the math. It’s not a quote, an average or a promise about your house.
Say a Baltimore rowhome would sell for $260,000 fixed up, needs $45,000 of work, and has a $90,000 mortgage.
| Cash offer (example) | List after light prep (example) | |
|---|---|---|
| Price | $165,000 | $215,000 |
| Repairs or prep before sale | $0 | -$6,000 |
| Commission | $0 | -$10,750 (example: 5%) |
| Seller’s share of transfer and recordation taxes (half of 3.0% in the city, incl. state tax) | -$2,475 | -$3,225 |
| Repair credit after inspection | $0 | -$4,000 |
| Months of carrying cost (taxes, insurance, utilities) | -$300 (1 month) | -$1,500 (3 months) |
| Mortgage payoff | -$90,000 | -$90,000 |
| Net to seller (example) | $72,225 | $99,525 |
In this example, listing nets about $27,000 more. It also takes longer, needs some cash up front for prep, and carries the risk that the buyer’s inspection or appraisal reopens the price.
Change the inputs and the answer changes. If the house needed $90,000 of work instead of $45,000, the listing price would drop, the buyer pool would shrink to people with renovation financing or cash, and the gap would narrow. If the house only needed paint and cleaning, listing would usually win by more.
The tax lines use Baltimore City’s 1.5% transfer tax, $5.00 per $500 recordation tax and the state’s 0.5% transfer tax, split 50/50. Your contract sets the actual split.
When a cash sale makes sense
Cash isn’t the “wrong” choice. It’s often the right one when:
- The house needs major work you can’t pay for or manage, like a roof, systems, structure or a full gut.
- It has a Vacant Building Notice or open violations. Under the Baltimore City Building Code, the buyer inherits open notices and has to fix them, which most retail buyers won’t take on. Our post on selling a house in Baltimore City explains why.
- You need a certain date for a job move, a divorce or an estate deadline.
- You don’t want showings because of tenants, health or privacy.
- You can’t carry the house for the months a listing might take.
If the house is in decent shape and you have a few months, listing usually nets more. Our as-is guide covers what you still have to disclose either way.
Red flags in cash offers
Most investors are straightforward. A few aren’t. Watch for these:
- An assignment clause. Language like “and/or assigns” after the buyer’s name lets them sell your contract to someone else. That’s how wholesaling works. Ask who will actually close and with whose money.
- A long inspection or “due diligence” period with a tiny deposit. That gives the buyer weeks to walk away for any reason, or to come back with a lower price once you’ve stopped marketing.
- A big price drop after the inspection. A cash buyer who saw the house and still “discovers” problems is often renegotiating.
- No proof of funds. Ask for a bank statement or a lender letter before you sign.
- Pressure. An offer that expires in an hour, or that asks you not to talk to anyone, is a reason to slow down.
- They want you to pick a title company they control or want to skip one. Use a settlement company you choose.
If you’re facing foreclosure, be extra careful. Maryland has specific rules on foreclosure “rescue” deals, and we cover those in our post on foreclosure options in Maryland.
Questions to ask any cash buyer
Before you sign, get clear answers to these, in writing where it matters:
- Who is the buyer on the contract, and is that the person or company that will close?
- Can the contract be assigned? If so, to whom, and do you have to approve it?
- How big is the deposit, who holds it, and when does it become non-refundable?
- How long is the inspection period, and can they cancel for any reason during it?
- Is the price firm, or can it change after their walkthrough or inspection?
- Which settlement company will handle the closing, and can you choose it?
- Can they show proof of funds for the full price?
A serious buyer will answer all of these without hesitating.
Getting both numbers before you choose
The best way to decide is to put the real numbers side by side:
- Get a market value for the house as-is and after light prep, from recent sales near you.
- Get one or two real cash offers in writing, with the deposit, inspection period and closing date spelled out.
- Price the prep work you’d need to list. Get an actual quote, not a guess.
- Run both net sheets with your actual payoff and your actual tax split.
- Weigh the time and risk. A $15,000 difference matters less if you need to close in three weeks.
We can help with all five. If one of the investors we work with, or anyone on our team, wants to make an offer on your house, we’ll tell you that in writing before you decide, so you know exactly who’s on which side. Our investors page explains how we work with them.
Bottom line
A cash offer trades price for speed and certainty. For a house that needs heavy work, has violations or has to close on a fixed date, that trade is often worth it. For a house in fair shape with a flexible timeline, listing usually nets more. Get both numbers in writing, read the contract for assignment clauses and long inspection periods, and decide from the net sheets, not the headline price. Request your home value and we’ll help you compare.
Sources
- Maryland Department of Legislative Services, County Tax Rates, FY 2022-FY 2027, checked October 2026
- Maryland Code, Tax-Property § 13-203 (state transfer tax), checked October 2026
- Baltimore City Department of Finance, Liens, checked October 2026
- Baltimore City Building Code, § 114.23, Responsibility of transferee, checked October 2026