When preparing check style direct mail letters, it's critical to understand how the “Total Value” is calculated and how to determine the appropriate estimated cash offer. This ensures your messaging is both compelling to sellers and aligned with your investment strategy.
What Is Total Value?
Total Value is the estimated market value of a property based on recent sales of comparable properties in the area. This number is:
Updated biweekly by our national data vendor
Based on an automated valuation model (AVM) and public record data
Often aligned with the property's After Repair Value (ARV)
May vary by 20 30% from actual value depending on the property condition, improvements, or unique market factors
This value appears on your check letters and helps position your offer in a credible and data-supported way.
How to Determine an Estimated Cash Offer Percentage
To ensure your check offers are relevant and effective, follow this four-step process:
1. Review Sample Properties
You’ll receive a list of sample properties, each showing its Total Value in column F of the provided Google Sheet.
2. Conduct a Comparative Market Analysis (Comps)
Review at least 15 similar properties in each of your target markets. Look for:
Recently sold homes of similar size, condition, and location
Any pattern in pricing based on distress or needed repairs
Realistic After Repair Values (ARV)
Enter your ARV estimates in column G.
3. Input Your Estimated Cash Offers
Calculate your offer using your preferred formula (e.g., ARV x Offer %) and enter it in column H.
Example:
Total Value: $250,000
You estimate ARV to be $270,000
Offer %: 75%
Cash Offer = $270,000 x 0.75 = $202,500
We recommend aiming for realistic, region-adjusted offers rather than a flat national percentage.
4. We Use This Data for Future Lists
Based on your submitted values, our team will:
Calibrate the estimated check amounts for your future campaigns
Recommend market-specific offer percentages
Optimize targeting for conversion and credibility
Why Is Accuracy So Important?
Getting your offer percentage right directly impacts campaign performance:
If Too Low:
Sellers may see your check as unreasonably low
Response rates will suffer
You risk missing out on viable opportunities
If Too High:
You may attract sellers with unrealistic expectations
Deal negotiations become harder and slower
Your credibility could be affected
A balanced offer strategy drives more inbound calls and closes without overcommitting.
Can I Use the Same Percentage Across Markets?
Not recommended.
Each market has unique pricing dynamics, seller motivations, and repair costs. We strongly suggest setting custom offer percentages per market.
We’ll help you determine the right number for each location based on your historical deals and goals.
Not Sure How to Estimate ARVs?
No problem! Here are a few options:
Use free platforms like Zillow, Redfin, or Realtor.com to review comparable sales
Work with your Customer Success Manager for hands-on guidance
Submit your current approach — we can help refine it
Campaign Performance Tip
Clients who calibrate their offer percentages based on actual market data often see:
? Higher mail open and response rates
? More qualified conversations with motivated sellers
? Stronger ROI on each direct mail campaign
Even small adjustments to your offer strategy can dramatically improve conversion.
Need Help Finalizing Your Offer Strategy?
We’re here to support you. If you need help reviewing comps, filling out the offer sheet, or understanding your market better:
Contact your Customer Success Manager, or
Email us at support@8020rei.com
We’ll walk you through it step-by-step and ensure your next campaign is set up for success.