How much investors pay | How it works | Pros and cons | Negotiating | FAQ
Selling your house to a cash home buyer or investor can be a fast and convenient option, especially if your home needs repairs or you’re motivated to sell ASAP. But most investors make offers well below market value to turn a profit by flipping or reselling the property.
Understanding how much investors typically pay — and why — can help you make a more informed decision and avoid leaving money on the table. Most cash investors base their offers on your home’s after-repair value (ARV), typically offering 70–80% of what they expect to sell it for after renovations. The more work your home needs, the lower the offer will likely be.
If you're considering this route, it's smart to:
- Learn how investor offers are calculated. Understanding the 70% formula helps you spot lowball offers and negotiate more confidently.
- Get multiple offers to compare prices and terms. Not all investors are the same. Some may waive inspections or close faster, while others may offer a higher price but include fees or conditions. Use services like Clever Offers to compare multiple offers quickly.
- Weigh the trade-offs between offers, such as speed, certainty, and profit. Ask yourself how much speed and convenience are worth — and whether you’re okay sacrificing some equity for a faster sale.
Before you move forward, it's important to have a ballpark idea of what your home might be worth to an investor. Offers are typically much lower than traditional sale prices — but how much lower depends on your home’s condition, location, and the local market.
How much investors pay for houses
| ARV | Offer (70%) | Offer (80%) |
|---|---|---|
| $300,000 | $210,000 | $240,000 |
| $400,000 | $280,000 | $320,000 |
| $500,000 | $350,000 | $400,000 |
Most real estate investors aim to pay well below a home's after-repair value (ARV) — what the property could sell for once it’s been fully renovated. A Clever survey of over 700 investors found that typical offers range from 65% to 70% of the ARV, with a median offer of 67.5%.
“We calculate our offer by determining the property’s potential resale value, subtracting renovation costs, and applying a 75% multiplier to the adjusted resale value,” says Charles H. Chandler III, CEO of My Tennessee Home Solution. “This ensures the deal has at least 25% equity and aligns with our margin targets.”
For example, if your home’s ARV is $300,000, an investor might offer around $210,000 to $240,000 — depending on the expected repair costs and their desired profit margin.
To determine the ARV, investors calculate the current value of the house and add in repair costs. For example, if your home is worth $225,000 in its current condition and needs $75,000 in repairs:
ARV = $225,000 + $75,000 = $300,000
But ARV is just part of the equation. Investors also factor in holding costs — the monthly expenses incurred while fixing and reselling the property. These costs reduce the amount they’re willing to offer and can include:
- Short-term loan payments, like bridge, hard money, or fix-and-flip loans
- Homeowner’s or landlord insurance
- Utility bills and basic maintenance
- HOA dues or property management fees
All of these costs — plus the investor’s desired profit margin — help determine how much they’ll actually offer for your home.
Why don’t investors pay full price?
Selling your house to a cash home buyer or investor can be a fast and convenient option — especially if you need to sell your house fast, have major repairs, or want to avoid the hassle of a traditional listing. Just know that house flippers don’t pay fair-market value because they typically expect a 10-20% profit margin when the house goes to market.
To make more money later, fix-to-flip investors want to buy houses with a higher ARV to create built-in equity and have more wiggle room on price once the property goes to market.
Flipping homes also comes with risks, like unexpected repair expenses or rising monthly costs from a slow market, so many real estate investors also make lower offers to build some cushion into the budget.
What an investor might earn
| ARV | Offer(70% ARV) | Repairs | Financing Cost* | Total Profit |
|---|---|---|---|---|
| $400,000 | $280,000 | $50,000 | $14,000 | $56,000 |
| *Based on a hard money loan at 10% APR and 1-year repayment. | ||||
This table breaks down what an investor might pay for a house expected to sell for $400,000 after repairs, with an estimated $50,000 in repairs. The investor could earn an estimated $56,000 profit if they purchase the house for $280,000.
Types of real estate investors who pay cash for houses
Cash buyers play a major role in the housing market — in fact, 32% of home sales in January 2024 were all-cash deals, the highest rate since 2014.[1]
Here are the most common types of real estate investors you may encounter
House flippers
Fix-to-flip investors, or house flippers, take an HGTV-style approach to real estate investment: They purchase below market value and resell as soon as possible.
Most flippers look for homes that only require cosmetic upgrades, such as bathroom and kitchen refreshes that require no structural repair. After installing updates, they take the home to market to make a profit.
Brendan Grey of Grayscale Wholesale says his company often targets homes built after 1950, especially in large metro areas. “For properties needing only cosmetic rehab, we sometimes offer up to 75% of ARV — but that depends heavily on local market conditions.”
iBuyers
iBuyers are web-based real estate investors focusing on flipping opportunities, wholesaling to a house flipper, or buy-now-sell-later programs for homeowners.
Working with an iBuyer like Opendoor might net sellers more money because these companies typically have a wider reach than average house flippers. They also offer tech-focused platforms that simplify the home-selling process.
Buy-and-hold investors
Buy-and-hold investors typically care less about potential resale in the current market and more about the current rental market. These investors aim to buy and fix properties to use as rental properties and accrue passive income until the time is right to sell.
“We focus on single-family homes in strong rental markets that align with Section 8 standards," says Brian Harbour of Real Deal Home Solutions. "To be worthwhile, these deals need to generate $300–$500 per month in cash flow per door.”
When the market shifts in their favor, buy-and-hold investors may choose to sell the property for a profit — or continue collecting rental income indefinitely.
Real estate wholesalers
Wholesalers enter contracts to buy properties and then sell those contracts to property developers or other investors looking to flip homes.
Since much of the wholesaling strategy relies on transferring sales contracts to another investor, wholesalers typically offer less money than other investors to profit from the deal.
“For wholesale deals, we target a minimum profit of $10,000. Our flips aim for 20–30% ROI after all costs,” says Harbour.
How does selling to an investor work?
Step 1: Find investors who meet your criteria
Start by researching real estate investors and iBuyers in your area. If you aren’t sure where to begin, comparing cash offers from investors through Clever Offers is a great place to start.
Step 2: Let them know you want to sell
Contact your potential investor to tell them a bit about your home and that you want to sell it. If you choose to work with an iBuyer, this process involves filling out a form on the company’s website.
During this initial contact, the investor may make an upfront offer on your home, but that offer could change before closing.
Step 3: Schedule a first meeting or consultation
After contacting an investor, you’ll schedule a consultation to give them more information about your home, discuss their process, and set up a home inspection.
This meeting is a good opportunity to ask questions about how they calculate property value and what they look for regarding repairs.
Step 4: Undergo a property inspection
Shortly after the first meeting, your investor will schedule a property inspection — local flippers may inspect the home on their own, while larger companies often use third parties.
Most companies don’t require you to be present for the inspection. But it’s better if you are there for the walkthrough to ask questions and get a feel for potential repairs.
Step 5: Receive a final offer and negotiation
Once the home inspection is complete, the real estate investor will adjust their offer based on potential property improvements.
In some cases, like if you use an iBuyer, this final offer will be take-it-or-leave-it. But you may have room for negotiation if the investor’s repair quote is overinflated or you have a better offer to leverage.
Step 6: Title review, inspection, and other due diligence
During this phase, the investor will present you with a sales contract for your home, and you will have time to review it before closing.
They will also pull your property title to ensure you own your property and there are no issues that would prevent the deal from happening.
It’s essential to consult a real estate professional or attorney to review these documents to make sure the offer is legit before signing the contract.
Step 7: Financing and closing
After you agree to the offer, you’ll close the deal and receive payment for your home. This process often moves quickly because most investors pay cash for homes.
If your investor needs financing, there may be a delay until they secure funds.
Step 8: Transfer of ownership
Once you close the deal, you’ll take legal steps to prepare and transfer your deed to the investor. You may also need to pay transfer taxes and fees if the investor didn’t agree to pay them during the cash deal.
After the deed transfers, the investor assumes full ownership of your property.
Pros and cons of selling to investors
Pros
✅ Homes bought as-is. You don’t need to make repairs before selling or prepare the home for showings.
✅ You can close quickly on your sale. Many home investors want to move quickly through the sale process and can close in as few as one to two weeks.
✅ Can provide financial relief. House flippers often work with banks to clear up financial problems like liens, delinquent mortgage payments, homes facing foreclosure, or other complicated financial problems.
✅ No contingencies. You won’t need to worry about your buyer securing financing, making repairs to close, or getting a home appraisal before selling to an investor.
✅ No commission or closing costs. Since selling to an investor is a cash deal without realtor guidance, there's no commission. And most investor sales have no closing costs or extra fees for selling to them.
Cons
❌ You will earn less. Fix-to-flip investors and wholesalers only offer around 70-80% of ARV to make a profit, which is significantly lower than the fair market value.
❌ Little room for negotiation. Most investors make take-it-or-leave-it offers, so you won’t have much wiggle room if you want to negotiate a better price.
❌ Not all cash buyers are reputable. While most investors who buy homes for cash run legit businesses, some have poor reputations with customers. Researching your local investors before agreeing to work with them is essential to ensure they are trustworthy.
❌ You may still need a home inspection. Most investors will walk through your property to inspect for potential repairs and adjust their offer. This inspection could impact the final price of the cash deal.
How to negotiate the best deal with investors
Most cash deals have minimal room for negotiation (especially if you work with an iBuyer), but you may get them to budge on price if you negotiate well. Here are some tips for getting the best deal on your sale:
1. Understand your home’s market value
Researching comparable properties in your area, getting a comparative market analysis from a trusted realtor, or hiring a home appraiser will help you understand your home’s value.
This knowledge will help you understand how investor quotes stack up to the actual value and give you leverage when discussing price.
2. Talk to multiple investors
Contact multiple investors and let them know you plan to compare offers, as competition can drive up the price. Comparing offers allows you to play the field and find the best deal on your cash sale. Be sure to get quotes from local investors, iBuyers, and wholesalers to determine which investor is right for you.
Our best advice is to use a cash offer marketplace, such as Clever Offers, which helps you compare multiple investor offers quickly to streamline the selling process.
💡 Pro tip: Consider other factors besides the offer amount. A lower offer may still be more favorable if the investor covers your closing costs, lets you choose your move-out date, or skips contingencies.
3. Highlight your property’s strengths
When talking with cash home buyers and investors, it's a good idea to proactively call out your home’s best features. This can help them see added value that might not be obvious on paper — and potentially justify a higher offer.
Features to highlight may include a desirable location, recent renovations or upgrades (backed up with receipts, inspection reports, or permits), strong rental potential, or unique features.
4. Be flexible
You may be able to handle minor repairs or cover expenses like closing costs to sweeten the deal for your investor. This flexibility could result in a higher offer.
Other ideas include offering to cover the seller's closing costs (such as transfer taxes or title insurance), being open to a faster closing date, or including appliances, furniture, or other items in the sale.
5. Provide a pre-inspection report
Requesting a professional home inspection before you look for an investor may pay off in the long run.
A pre-inspection report shows transparency as you enter a deal. It gives you your own list of needed repairs to compare against the investors, which should make it easier to spot inflated repair estimates they might use to justify a lower offer.
A potential bonus: If the inspection shows your home is in better shape than expected, you may be able to negotiate a higher offer.
🔍 Pro tip: Some investors may make a strong initial offer, only to reduce it after the inspection. Avoid this by requiring all inspections to be completed before agreeing to a final sale price — and don’t sign anything until the terms are locked in.
6. Protect your interests
Before you enter into a deal with an investor, ask for proof of funds or request earnest money on the deal. This strategy can keep them from backing out of the agreement and hold them to their initial offer.
“Sellers should check reviews, verify proof of funds, and clarify all contract terms,” says Charles H. Chandler III, CEO of My Tennessee Home Solution.“ Avoid buyers who pressure you to skip inspections or legal review — those are classic bait-and-switch tactics.”
It's a great idea to get legal help if you’re not using an agent. Even a brief review from a real estate attorney can protect you from hidden fees or one-sided contract terms that take advantage of your situation. If the buyer pushes you to skip this step, take it as a red flag.
7. Shop around and leverage offers
Getting multiple offers is one of the best ways to maximize your profit and ensure you're not leaving money on the table. It carries the following benefits:
- More competition. When investors know you’re speaking with others, they will likely make stronger offers and better terms to win your business. Let investors know you’ve received competing offers (without disclosing exact details), as it can motivate them to improve their terms.
- Compare offers in-depth. One investor might offer more cash, but another could offer a quicker closing, fewer contingencies, or cover more fees — all of which can add up to a better overall deal.
- Explore all types of buyers. Get quotes from local flippers, national investor networks, and iBuyers to understand what’s available.
The more information you gather, the more confident you'll be in choosing the offer that truly benefits you, not just the one with the biggest number upfront.
Want to make this step easier? Clever Offers helps you compare multiple investor offers in one place — no pressure, no fees, and no commitment to sell. It’s a fast, simple way to see what cash buyers are willing to pay for your home.
Alternative: Connect with a local low-commission agent instead
Working with a knowledgeable full-service realtor is your best bet to make the most on your home while receiving exceptional service. And when you choose a low commission realtor, you’ll make even more on your sale.
The downside: While you may save on commission fees, the process might take longer than selling to a cash buyer. Consider this route only if you believe your home can sell through traditional methods and you’re not facing any circumstances that require a quick sale.
The bottom line
Selling to a real estate investor is ideal for someone who wants to sell an inherited property, needs a quick sale, prefers to avoid the stress of real estate deals, or if you:
- Need to sell quickly
- Don’t want to make repairs
- Aren’t interested in making maximum profit
But if you want to make the most on what’s most likely your biggest asset, you should consider a low-commission realtor or use a service like Clever Offers, which matches you with fully-vetted cash buyers who place bids on your home.
FAQ
What types of investors want to buy my house?
Flippers, buy-and-hold landlords, iBuyers, and wholesalers may all be interested. Flippers want homes they can fix and resell quickly, while buy-and-hold investors seek rental income. iBuyers use tech to make fast offers, and wholesalers resell contracts to other investors. Each type has different goals — and offers — so it’s worth comparing a few. We recommend using a free service like Clever Offers to quickly see what different investors would pay.
How do I avoid cash home buyer scams?
Start by researching the investor. Check their website, read online reviews, and ask for a list of recent purchases. A legit investor should have a track record and be easy to verify.
It's also important that you avoid paying upfront fees to an investor. You should use a trusted title or escrow company to handle the closing and money transfer. If the investor pressures you to skip steps or refuses to show proof of funds, that’s likely a red flag.
How does it work when an investor buys my home?
When an investor buys your home, the process is typically faster and simpler than a traditional sale. It usually starts with reaching out to a local investor or submitting your property information online. The investor will estimate your home’s after-repair value (ARV) — what it could sell for once renovated — then subtract repair costs, holding costs like insurance and utilities, and their desired profit.
Once they run the numbers, you’ll receive a cash offer, which may be adjusted after a home inspection. If you accept, the investor will draw up a contract and usually handle all paperwork and closing logistics. Many deals close in one to three weeks, especially if the investor pays in cash. But it's important to compare offers and consider having a real estate attorney review the agreement.
