We start with what comparable houses near yours have actually sold for - real closed sales, not listing prices. From that we subtract what it will realistically cost us to repair and resell the house, and our margin for taking on the risk. What's left is your offer.
That's why the offer is typically below full retail value: you're trading some price for a sale with no commissions, no repairs, no showings, no financing risk, and a date you control. For some sellers that trade is clearly worth it. For others it isn't - and when it isn't, we'll say so.
The offer is written, free, and good whether you accept it this week or think it over. Use it as a benchmark against listing if you want - we'll even help you run that comparison honestly.