Cash home buyers usually pay less than full market value. Local investors and flippers often start from the home's after-repair value and subtract repairs, costs, and profit, so offers commonly land well below retail. iBuyers pay closer to market but deduct a service charge and repairs. What matters most is your net after all costs and time.
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If you are weighing a cash offer, you may worry about being taken advantage of while you are under pressure. Knowing how the math works puts you back in control of the decision.
Cash buyers pay less than a retail sale because they take on repairs, holding costs, and risk. Here are the numbers we could verify:
It depends on the type of buyer, and there is no official national average for cash offers. Here is how each type usually prices a home:
Be wary of any buyer who quotes a percentage before seeing the home. A fair offer depends on condition, location, title, and how fast you need to close.
Most investors start with the after-repair value and work backward. The after-repair value (ARV) is what the home should sell for once it is fixed up, based on recent nearby sales.
Many flippers use a shortcut called the 70% rule: maximum offer = ARV x 70% minus repair costs. For a home worth $300,000 fixed up that needs $30,000 of work, that is $210,000 minus $30,000, or $180,000. Lenders who teach the rule call it a starting point, not a fixed rule, and investors adjust it for higher-priced homes and hot or slow markets. It is an investor's guide, not a law or a fair-price standard for you.
A true direct buyer usually charges no commission, but you should still read every line of the settlement statement. Costs that can reduce your check include:
You should never pay a buyer a fee to make or accept an offer.
This example uses hypothetical numbers to show the math, not real offers or averages. Assume a home worth $300,000 once repaired, needing $25,000 of work, with a $150,000 mortgage payoff and $2,500 a month in carrying costs.
| Hypothetical line item | List with an agent | Local cash buyer | iBuyer |
|---|---|---|---|
| Sale price | $300,000 (after repairs) | $200,000 (as-is) | $285,000 offer |
| Repairs you pay or that are deducted | -$25,000 | $0 | -$25,000 |
| Commission or service charge (assumed) | -$15,000 (5%) | $0 | -$17,100 (6%) |
| Seller closing costs (assumed) | -$4,500 | -$1,000 | -$2,850 |
| Carrying costs until closing | -$10,000 (4 months) | -$2,500 (1 month) | -$3,750 (6 weeks) |
| Mortgage payoff | -$150,000 | -$150,000 | -$150,000 |
| Estimated net to you | $95,500 | $46,500 | $86,300 |
In this example, listing with an agent nets the most, if you have the cash for repairs and four months of time. The commission and service charge rates are assumptions for illustration; commissions are negotiable, and Opendoor does not publish a fixed rate. The $200,000 cash price is above what a strict 70% rule would give ($185,000); real offers vary by buyer and market. Run your own numbers with real quotes.
A lower price can net more when time or money is the real constraint. The example above assumes you can wait months and pay for repairs. Often, people facing foreclosure cannot.
Selling before the sale, including to a direct cash buyer, is one option. Compare it with the others in selling your house to avoid foreclosure.
Get a listing price opinion from an agent and at least two cash offers. Listing may net the most.
Compare as-is cash offers side by side, and ask each buyer for its repair estimate so you can see how it reached its number.
Focus on buyers who can show proof of funds and close through a title company before the sale date. Call your servicer about a postponement too. Read how to stop a foreclosure auction.
A cash sale will not cover the payoff on its own. Look at a short sale or other underwater mortgage options.
Sources (checked 2026-09-26):
Some offers are that low, usually from wholesalers or on homes needing heavy repairs. There is no official average. Compare several written offers and ask each buyer to show how it calculated its number.
Usually, yes. A cash buyer takes on repairs, holding costs, and risk, and prices that in. In exchange, you often skip repairs, showings, and loan delays.
A direct buyer usually charges no commission, but closing costs and payoff amounts still come out of your proceeds. iBuyers deduct a service charge and estimated repairs. You should never pay a fee up front to receive an offer.
Most investors estimate the after-repair value from nearby sales, then subtract repairs, holding and resale costs, and their profit. Many flippers use the 70% rule as a quick starting point. It is an investor shortcut, not a fair-price standard.
Yes. Offers are negotiable, and competing written offers are your best leverage. You can also negotiate who pays closing costs, the closing date, and limits on price changes after inspection.
Former bank loss mitigation managers — we know how decisions get made inside servicers because we used to make them.
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