What is a cash home sale with 3 Brothers?
We buy the house as it sits. You don’t fix anything, clean anything or pay commissions or closing costs, and we can close in 7 to 14 days. Ryan walks the house, Jordan prices the repairs, and you get a written offer within 24 hours.
The trade-off is plain: a cash offer is below market value. Our offer is the After Repair Value (ARV) minus Jordan’s repair estimate, holding costs and our margin, and we show you every line. If listing with Ryan would net you more and you have the time, he will tell you.
Who sells to a cash buyer in the Twin Cities?
Most people who call us to sell their house fast in the Twin Cities aren’t looking for top dollar. They’re looking for a way out of a problem, on a date they can plan around. The common reasons:
- A deadline. A sheriff’s sale date, a job start in another state, a divorce decree or a move into assisted living.
- A house that won’t pass a buyer’s lender. Foundation movement from freeze-thaw, a failed septic, a 60-amp panel, fire or water damage. FHA and VA appraisals flag these, and retail buyers walk.
- A house full of stuff. An estate with 40 years of belongings, or a hoarder situation. Leave it. All of it.
- Title trouble. A Medicaid estate recovery claim, a judgment lien, delinquent property taxes or a missing lien release from an old refinance.
- Tenants. Non-paying tenants or a rental you manage from out of state. We buy with tenants in place.
- A failed sale. An expired listing or a buyer whose financing fell through two days before closing.
If none of these fit and the house is in decent shape, a cash sale is probably not your best move. Read when you should not sell to us before you decide.
How much less is a cash offer than listing?
Less, and we won’t pretend otherwise. The gap depends on repairs and time. A house that needs $55,000 of work will sell for far less than a finished one no matter who buys it. What matters is your net: the money in your pocket after every cost.
| Cost | Cash sale to us | Listing on NorthstarMLS |
|---|---|---|
| Commission | $0 | Standard commission, set in the listing agreement |
| Repairs and prep | $0, priced into the offer | You pay before or during the listing |
| Minnesota deed tax (about 0.33%) | We pay it | Seller usually pays |
| Title and closing fees | We pay them | Seller pays their share |
| Monthly holding costs | 1 to 2 weeks | 2 to 4 months of mortgage, taxes, insurance, utilities |
| Days to cash | 7 to 14 | Often 60 to 90 |
Run your own numbers in the cash vs. list net sheet, or ask Ryan to do it. He puts both nets side by side in writing.
How is a cash offer calculated?
The formula is short. The work is in the inputs.
- After Repair Value (ARV). What the house would sell for fixed up, based on recent sales of similar houses near yours.
- Jordan’s repair estimate. Line by line: roof, furnace, electrical, windows, kitchen, bath, flooring, paint, cleanout. If the city requires Truth in Sale of Housing (TISH) repairs in Minneapolis or a point-of-sale evaluation in St. Paul, those go in too.
- Holding and resale costs. Property taxes, insurance, utilities, deed tax, title insurance and the costs to resell after repairs.
- Our margin. What keeps a three-brother business open. We say the number out loud.
Our published worked example: $385,000 ARV minus $55,000 in repairs, $28,000 in holding and resale costs and a $35,000 margin equals a $267,000 cash offer. See the full breakdown in how we calculate your cash offer.
What does the purchase agreement look like?
Our cash purchase agreement is as-is, with no inspection contingency and no financing contingency. That means no appraisal and no buyer walking away over a lender’s condition list. It names us as the buyer with no assignment clause, so your contract can’t be sold to a stranger. It has a fixed closing date and a real earnest money deposit held by the title company.
Before you sign, we show proof of funds, and Ryan discloses his real estate license status in writing because he’s buying directly. If you want an attorney to read it first, that’s fine with us. Read how to read a cash purchase agreement to see the clauses a bad buyer hides.
What happens at closing?
A Minnesota title company runs the title search and issues title insurance. It orders payoff statements from your mortgage lender and any lienholders, then prepares the settlement statement. At closing, the title company pays off the mortgage, liens and delinquent taxes from the sale price, and the rest is your net proceeds, wired or paid by check.
You can close in person, by mail or with a mobile notary if you live out of state. Moving assistance of up to $1,200 is paid as stated in your written offer. The offer to closing timeline walks through it day by day.
When is a cash sale the wrong choice?
When you have time and a house in decent shape, listing usually wins. When the problem is temporary and you can qualify, a refinance may let you keep the house. When you have a low-rate mortgage and little equity, a creative financing structure can net more than cash. Ryan will tell you which one fits, in writing, before you sign anything.
