On comparable homes, investors paid 19.5% less than other buyers, according to Clever’s Market Pulse data (Sept. 30, 2026).[1] Most cash investors base offers on a home’s after-repair value (ARV), what it could sell for once renovated, then subtract repairs, costs, and profit. The more work a home needs, the lower the offer. Selling to a cash home buyer is fast and convenient, especially for a house that needs repairs or a seller who must move quickly, but you trade equity for that speed.
If you’re considering this route, it’s smart to:
- Learn how investor offers are calculated. The 70% rule helps you spot lowball offers.
- Get multiple offers. Compare prices and terms—some waive inspections or close faster, others pay more but add fees or conditions.
- Weigh speed and certainty. Consider what you give up in price.
💡 Want the best possible price from investors? Clever Offers, from Clever Real Estate, is a free marketplace where you can compare competing cash offers; sellers pay no fees when they accept a cash offer, and every investor in the network has verified proof of funds.[3]
How much do investors pay for houses?
Investors paid a median $275,000 for homes as of Sept. 30, 2026, compared to $395,000 for all other buyers; on comparable homes, the gap is 19.5%, according to Clever’s Market Pulse data.[1] The raw gap of about 30%—median $275,000 versus $395,000—is partly because investors often tend to buy lower-priced homes.[1]
Flippers, a specific type of investor, typically base their offers on a home’s after-repair value (ARV). According to Clever’s 2024 survey of real estate investors, a majority of flippers (56%) say their maximum offer is 70% of ARV, and 77% say their maximum is 80% of ARV.[2] As Charles Chandler, Co-Founder and COO of My Tennessee Home Solution, explains:
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. This ensures the deal has at least 25% equity and aligns with our margin targets.
(ARV × 0.70) − Repair costs = Maximum offer
Here’s how flippers apply this formula: if similar move-in-ready homes sell for $300,000 nearby and yours needs $30,000 of repairs, a flipper using the 70% rule would offer around $180,000.
($300,000 × 0.70) − $30,000 = $180,000
This table illustrates different ARV scenarios:
| After-repair value (ARV) | Repair costs | Investor’s offer (70% of ARV minus repairs) |
|---|---|---|
| $300,000 | $30,000 | $180,000 |
| $400,000 | $40,000 | $240,000 |
| $500,000 | $50,000 | $300,000 |
ARV is not the whole story. Investors also consider holding costs — expenses they incur during the repair and resale phase. These include:
- Short-term loan payments. Covering bridge loans, hard money, or fix-and-flip loans.
- Insurance, utilities, and basic maintenance. Necessary upkeep while waiting to resell.
- HOA dues or property management fees. If applicable based on property type.
These costs, along with the investor’s desired profit margin, influence the final offer.
To explore how different factors affect your potential sale price, you can check out the cash offer calculator to test your own figures.
Why don’t investors pay full price?
Investors don’t pay full price because they’re not buying a home to live in. They need room for repairs, holding costs, selling costs, risk, and profit. Fixer-uppers also have limited appeal for typical retail buyers — only 6% of prospective home buyers are willing to purchase one.[4] Many sellers accept the trade-off of a lower price to sell quickly.
What an investor might earn on a flip
In 2025, the typical U.S. flip earned a gross profit of $65,981, which translates to a 25.5% gross return on investment. This is the lowest level recorded since 2008.[5] Investors bought homes for about $259,019 and resold them for $325,000, taking around 163 days from purchase to resale.[5] These gross profits don’t account for rehab and holding costs, so net profits are often lower.
Here’s an illustration for a home with an after-repair value of $400,000 that needs $50,000 of work. An investor using the 70% rule might offer $230,000. With $22,000 in selling costs, about $98,000 remains before considering holding and financing costs.
| Line item | Amount |
|---|---|
| After-repair value (ARV) | $400,000 |
| Purchase price (70% of ARV minus repairs) | −$230,000 |
| Repair costs | −$50,000 |
| Selling costs | −$22,000 |
| Left before holding and financing costs | $98,000 |
That cushion is what the investor uses to cover holding costs, financing, and risk — and it’s the room you have to negotiate.
How much investors pay in your state
How much less investors pay depends a lot on where you live. On comparable homes, the investor discount ranges from 36.6% in Maryland to 6.5% in Arizona among states with enough sales to measure reliably, according to Clever’s Market Pulse data (Sept. 30, 2026).[1]
Here’s a closer look at investor discounts by state:
| State | Investor discount on comparable homes | Investors’ median price | Other buyers’ median price | Investor share of purchases |
|---|---|---|---|---|
| Maryland | 36.6% | $210,000 | $445,000 | 10.0% |
| Pennsylvania | 33.8% | $143,000 | $305,000 | 8.5% |
| Oklahoma | 31.0% | $130,500 | $249,900 | 9.2% |
| Ohio | 28.3% | $119,050 | $260,000 | 7.0% |
| Mississippi | 25.5% | $125,000 | $290,000 | 7.4% |
| Tennessee | 23.0% | $180,000 | $360,000 | 7.8% |
| North Carolina | 21.5% | $249,997 | $368,000 | 8.7% |
| South Carolina | 20.2% | $230,000 | $346,000 | 7.6% |
| Alabama | 19.8% | $165,000 | $288,900 | 9.4% |
| New Jersey | 19.0% | $399,000 | $550,000 | 7.8% |
| Florida | 14.0% | $310,000 | $389,900 | 8.9% |
| Maine | 12.1% | $335,000 | $389,000 | 7.2% |
| Nebraska | 11.5% | $250,000 | $300,000 | 10.6% |
| Nevada | 10.4% | $416,750 | $470,000 | 7.3% |
| Arizona | 6.5% | $402,000 | $440,000 | 6.1% |
| United States | 19.5% | $275,000 | $395,000 | 7.6% |
Clever’s Market Pulse data doesn’t show why the discount varies from state to state. States not listed were left out because their data was too thin or didn’t pass a reliability check. Nationally, investors made 7.6% of home purchases, according to Clever’s Market Pulse data.[1] If you’re in a state without specific data, treat the national 19.5% discount figure as a rough guide and consider getting several offers for comparison.
Types of investors and how much they pay
Different investors buy homes for various reasons, affecting their offers significantly. Investors accounted for 7.6% of U.S. home purchases, with 21.9% of these being flips, according to Clever’s Market Pulse data.[1] Let’s explore the common types of investors and their typical offers.
House flippers
Flippers usually aim to buy homes below market value, make mostly cosmetic renovations — like kitchen and bathroom upgrades — and resell quickly. In Clever’s survey, 56% of flippers said their maximum offer is 70% of ARV, and 77% said it’s 80%.[2]
For properties needing only cosmetic rehab, we sometimes offer up to 75% of ARV — but that depends heavily on local market conditions.
iBuyers
Opendoor and Offerpad are iBuyers that make data-driven offers, sometimes with human expert reviews. They usually pay closer to market value than flippers, but fees reduce what the seller takes home. A 2019 study by Collateral Analytics found that two iBuyers paid median discounts of about 2% to 7% below market value, with total seller costs reaching up to 15% once fees were included.[6] Opendoor doesn’t publish a fixed service charge, providing it in each offer.[7] Offerpad states a 5% service fee.[8] For more details, check out our iBuyer reviews and Opendoor competitors pages.
Buy-and-hold investors
Buy-and-hold investors purchase properties to rent them out, basing their offers on potential rental income and cash flow, rather than short-term resale potential. They may hold these properties for extended periods.
We focus on single-family homes in strong rental markets that align with Section 8 standards. To be worthwhile, these deals need to generate $300–$500 per month in cash flow per door.
Real estate wholesalers
Wholesalers put homes under contract and assign these contracts to other investors, typically without buying the home. They profit from the assignment fee—the difference between the seller’s contract price and what the end buyer pays—which is why they generally make the lowest offers.
For wholesale deals, we target a minimum profit of $10,000. Our flips aim for 20–30% ROI after all costs.
How does selling to an investor work?
Most investor sales follow six steps, and when paying in cash, they can close in as little as one to two weeks.[9] The average home purchase took about 42 days to close in 2025.[9] Investors often expedite the process by bypassing traditional financing steps with cash purchases.
Step 1: Find investors who fit your situation. Look for local investors, iBuyers, or consider using a marketplace like Clever Offers, which compares cash offers from investors with verified proof of funds.
Step 2: Share details and get an initial offer. Fill out an online form or call with your home’s details. The initial offer you receive can change after further evaluation.
Step 3: Walkthrough or inspection. Expect a home inspection, either by the investor or a third-party service. It’s beneficial to be present to understand how they’re pricing repairs.
Step 4: Final offer and negotiation. Post-inspection, offers may decrease, but negotiation is possible, especially if repair costs seem exaggerated or you have competing offers.
Step 5: Contract and title review. The investor will review the title. Have a real estate attorney or agent examine the contract before signing.
Step 6: Closing and payment. Cash deals can close quickly, but if the investor needs financing, it might take longer. Check the contract for any seller costs like transfer taxes.
Pros and cons of selling to an investor
Selling to an investor trades price for speed and certainty — on comparable homes, investors paid 19.5% less than other buyers (Clever’s Market Pulse data).[1]
Pros
✅ Sold as-is. No repairs, staging, or showings needed.
✅ Fast closing. Cash buyers can often close in as little as one to two weeks.[9]
✅ Fewer things that can fall through. No need for buyer mortgage approval or appraisal contingency in a cash deal.
✅ Lower selling costs. No listing agent commission. Some companies also pay typical closing costs: HomeVestors says it pays them.[10] HomeGo says it charges no commission or closing costs.[11] Confirm in writing which costs the buyer covers; you may still owe things like transfer taxes or mortgage payoff.
✅ Help with complicated situations. Useful if you’re dealing with liens, inherited homes, or a looming foreclosure.
Cons
❌ You’ll get less. 56% of flippers say their maximum offer is 70% of ARV.[2]
❌ Offers can drop after the inspection.
❌ Negotiating takes effort. Many offers have some room, but you need competing offers or your own repair numbers to push. (HomeVestors says its offers are negotiable.)[10]
❌ Not every cash buyer is reputable. Check reviews and proof of funds.
How to negotiate the best deal with an investor
Investor offers usually have some room for negotiation, and competing offers are your strongest tool. On the other hand, iBuyers generally allow less room for negotiation due to their more formula-based pricing. For reference, review iBuyer reviews.
1. Know your home’s market value
Start by understanding your home’s market value through comparable sales (comps), a comparative market analysis (CMA) from a real estate agent, or a professional appraisal. A solid grasp of your home’s worth lets you see the gap between the market value and the investor’s offer. Learn about getting a comparative market analysis (CMA) for more specifics.
2. Get competing offers
Having multiple offers gives you leverage. Inform investors that you’re shopping around and collect offers from local investors, iBuyers, and national buyers. Compare not just the price but also the net proceeds and terms, such as whether closing costs are covered, flexibility in move-out dates, and any contingencies involved. Clever Offers helps you compare these competing cash offers in one place at no cost to you.
3. Get your own repair numbers
Consider a pre-listing home inspection to get an accurate list of needed repairs, which helps counter the investor’s estimates. Many homeowners misjudge repair costs; 58% of homeowners in a Clever survey couldn’t accurately estimate repair costs before buying.[12] Read more on getting a pre-listing home inspection.
🔍 Pro tip: Insist that inspections are done before agreeing to a final price, and don’t sign until terms are locked in.
4. Highlight your home’s strengths
Bring attention to your home’s positive features, such as its location, any recent upgrades you can prove with receipts or permits, and the property’s rental potential. These strengths can justify a higher offer from investors.
5. Be flexible on terms
Being open to flexible terms can sweeten the deal for an investor. Consider offering amenities like a flexible closing date, including appliances in the sale, or handling minor repairs yourself.
6. Protect yourself before you sign
Before you finalize any deal, ensure you have proof of funds and earnest money secured from the investor. More on earnest money. Also, have a real estate attorney review the contract thoroughly. If a buyer pressures you to forgo inspections or legal review, that could be a red flag.
Sellers should check reviews, verify proof of funds, and clarify all contract terms. Avoid buyers who pressure you to skip inspections or legal review — those are classic bait-and-switch tactics.
Alternative: Sell with a low-commission agent
If your home is in good condition and time isn’t a pressing concern, listing with a full-service, low-commission agent often nets more than selling to an investor. Retail buyers generally pay closer to market value, whereas investors aim for lower purchase prices to maximize profits. The trade-off? You might wait longer for the sale to close — the average home purchase took about 42 days to close in 2025, according to Rocket Mortgage.[9] Plus, you’ll be responsible for managing showings and any necessary repairs. To explore options that could help you save money, read about low-commission agents.
The bottom line
An investor sale makes sense if you need to sell quickly, can’t or won’t manage repairs, or prioritize certainty over maximizing profit.
- Quick sale. Investors can close faster than the traditional market.
- No repairs needed. Sell your home as-is without tackling repairs.
- Certainty of sale. Avoid the ups and downs of the open market.
Expect to receive less than market value — typically 19.5% less on comparable homes nationally, and potentially more in certain states.[1] Before accepting any offer, explore your options. Clever Offers allows you to compare cash offers from investors with verified proof of funds at no cost. If you’d like to estimate what an offer might look like, consider using Clever’s cash offer calculator.
FAQs
Selling your house to an investor can make sense if speed, certainty, or selling as-is are more important than getting the highest price. Situations like looming deadlines, inherited properties, or houses needing major repairs can benefit from the investor route. Yet, if your home is in good condition and you have time, listing with a real estate agent often nets more. On average, investors pay 19.5% less for comparable homes compared to other buyers.[1]
A fair cash offer from an investor generally starts with the home’s after-repair value (ARV), subtracting repair costs, transaction expenses, and desired profit. According to Clever’s survey, 56% of flippers cap offers at 70%, while 77% go up to 80%.[2] A fair offer should fit this math with realistic repair costs. It’s wise to compare multiple offers using the cash offer calculator.
Avoid cash home buyer scams by researching reviews and checking if the buyer has a solid track record. Always ask for proof of funds and never pay any upfront fees. Use a title company or escrow service for added security and walk away from any buyer who pressures you to bypass standard processes. Find more tips on avoiding scams on our “we buy houses” ripoff page.
Different types of investors look for various opportunities: Flippers: Seek homes they can renovate and resell quickly. Buy-and-hold landlords: Want rental properties for long-term returns. iBuyers: Companies like Opendoor and Offerpad make data-driven cash offers, mainly on homes without major structural problems, and charge service fees. Wholesalers: Put a home under contract to assign it to another investor. To explore options, compare various cash home buyers.