When a seller wants to see your profit: how to answer honestly

Why sellers ask about your profit

A seller asking about your profit usually wants to understand if he or she is getting a fair deal. He or she might feel vulnerable, especially if the house needs work or if he or she needs to sell quickly. This question comes from a place of curiosity and sometimes skepticism, not necessarily hostility.

He or she might have heard stories about investors, or perhaps thinks you are just taking advantage of the situation. It's a natural reaction when someone is selling a significant asset like a home for less than market value.

Explaining your business model simply

Keep your explanation straightforward and focus on the value you provide. You are offering a quick, convenient sale with cash, taking on the burden of repairs and marketing. You can explain that you buy houses as-is, which means you handle all the headaches like cleaning, repairs, and finding a buyer.

For example, you might say, "My business is to buy houses quickly, often in their current condition, handle all the repairs, and then resell them. This process involves significant costs and risks, from renovation expenses to holding costs and market fluctuations."

This clarifies that you are not just flipping a switch for a windfall, but providing a service for a fee.

Focus on the seller's benefit, not your numbers

Shift the conversation back to how your offer benefits the seller directly. Remind him or her of the problems your solution solves: no real estate agent commissions, no repairs, no showings, a fast closing, and cash in hand. These are tangible benefits that have real value to a motivated seller.

You can say, "While I can't share my private business figures, I can tell you exactly what you will walk away with. My offer is designed to solve your problem of selling this house quickly and without any hassle or additional expense on your part."

This approach helps the seller see the immediate advantages of your offer compared to a traditional sale, which involves time, effort, and often unexpected costs.

What if he or she presses for exact figures?

If a seller continues to press for exact numbers, hold your ground politely but firmly. You do not need to disclose your profit margins, just as a retail store does not disclose its wholesale cost to a customer.

You might reiterate, "My offer is for the property as-is, and it covers my costs for repairs, holding, and the risk involved. My goal is to make a fair offer that works for both of us, allowing you to move on quickly without any additional work or expenses."

If he or she still insists, it might be a sign that he or she is not fully aligned with the type of sale you offer. Sometimes, walking away calmly is the best option if you cannot meet his or her expectations without compromising your business model.

Note: This is not legal or financial advice; consult with a professional for specific situations.

Maintaining rapport even if he or she walks away

Even if a seller decides not to accept your offer after this conversation, maintain a good relationship. He or she might still refer you to someone else, or his or her situation might change in the future.

End the conversation respectfully, saying something like, "I understand this might not be the right fit for you right now, and that's perfectly fine. If anything changes, or if you know anyone else who could benefit from a fast, as-is cash sale, please feel free to reach out."

A professional and honest approach, even without disclosing financials, builds trust and keeps your reputation intact. For more on handling initial calls, check out /learn/first-call-with-a-motivated-seller.