When preparing Direct Mail campaigns especially check letters or postcards that include an offer it's essential to calculate your Estimated Cash Offer based on reliable property data. 8020REI provides a consistent and structured process to help you determine the most effective offer amount using Total Value.
How Is Total Value Calculated?
Total Value represents an estimated market value of a property and is determined through:
A comparative analysis of recent sales of similar properties
Updates provided biweekly by our national data vendor
An alignment (in most cases) with the After Repair Value (ARV)
Note: Total Value may vary up to 20–30% from actual ARV depending on market volatility and data availability.
How to Determine an Estimated Cash Offer
To generate accurate offer amounts for your mail campaigns, follow these steps:
Step 1: Review Sample Properties
You’ll receive a sample list of properties with Total Value estimates already included.
Step 2: Conduct a Comparative Market Analysis (CMA)
Analyze at least 15 comparable properties to estimate a true ARV for each. Enter your estimates into Column G of the provided Google Sheet.
Step 3: Input Your Cash Offer
Based on your ARV, calculate the percentage offer you’d like to make and enter the resulting number into Column H.
Step 4: Internal Processing
Once submitted, 8020REI will apply your offer logic to your future Direct Mail campaigns, so the printed letters or postcards automatically reflect your estimated offer.
Typical Cash Offer Ranges
While your ideal percentage may vary by market and strategy, here are general guidelines:
| Market Type | Recommended Offer % of ARV |
|---|---|
| Hot/Competitive | 80–85% |
| Balanced | 70–75% |
| Distressed/Niche | 60–70% |
Adjust based on your profit targets, rehab costs, or disposition strategy (wholesale, flip, rental, etc.).
Example Table
| Property | ARV (Column G) | Offer % | Cash Offer (Column H) |
|---|---|---|---|
| 123 Main St | $320,000 | 70% | $224,000 |
| 456 Oak Ave | $250,000 | 75% | $187,500 |
Why Accurate Offers Matter
Setting the right offer percentage helps you:
Boost response rates by staying competitive
Avoid undervaluing properties and losing opportunities
Maintain your credibility with motivated sellers
Improve ROI through realistic, market-aligned expectations
Important Notes
8020REI does not automatically determine your offer amounts we require your inputs via the sample sheet to personalize your campaigns.
The cash offer process is only as good as your ARV estimation we recommend reviewing comps with your team or advisor before submission.
Want to Test Offer Strategies?
You can run A/B tests by using different offer percentages (e.g., 65% vs. 75%) across multiple lists to determine which generates higher callback or conversion rates.
Need Help?
If you need help analyzing your comps, choosing an offer range, or completing the submission file:
Contact your Customer Success Manager, or
Email us at support@8020rei.com
We’ll help you craft an offer strategy aligned with your goals and market dynamics.
