Cash Offer Guide

How Much Do Cash Home Buyers Pay?

Q: What percentage of value do cash home buyers pay?

Most pay roughly 70 to 80 percent of the after-repair value minus repair costs. iBuyers pay more (around 85 to 90 percent) but charge service fees; national franchises often pay less.

Q: Do cash buyers pay market value?

Generally no. They pay less than a fully-repaired on-market sale because they take on the repairs, costs, risk, and speed. In exchange you skip fees, repairs, showings, and financing risk.

Q: Why do cash buyers pay less than a listing?

A cash offer covers the buyer repair costs, holding costs, closing costs, and risk, and buys you certainty and speed a listing cannot. The gap narrows once you subtract a listing commissions and repairs.

Q: Do cash home buyers charge fees?

A reputable local cash buyer should not. We cover closing costs and charge no fees or commissions. iBuyers typically do charge a service fee of around 5 percent or more.

Q: How is a cash offer calculated?

After-repair value times roughly 70 percent, minus the cost of repairs. We show you the comps and the math on our how-we-calculate page.

It’s the first question every seller asks — and most cash buyers dodge it. Here’s the honest answer: what cash buyers actually pay, the formula behind the number, how it compares to listing, and how to tell a fair offer from a lowball.

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The short answer

Most cash buyers pay a percentage of the after-repair value

There’s no single number, but there is a consistent pattern. Most cash buyers and investors pay roughly 70% to 80% of a home’s after-repair value (ARV) — what it would be worth fully fixed up — minus the cost of the repairs it needs.

A few points on the spectrum:

Local cash buyers & investors — typically ~70–80% of ARV minus repairs, in exchange for speed, certainty, and no fees or repairs.
iBuyers (Opendoor, Offerpad) — often pay more, around 85–90% of value, but charge service fees of roughly 5% or more and are pickier about condition.
“We buy ugly houses” franchises — frequently the lowest offers, sometimes well under 70%, to leave room for a national brand’s overhead.

Where your offer lands comes down to two things: the home’s condition, and who’s making the offer.

The math

The formula behind a cash offer

Reputable cash buyers all use a version of the same equation. There’s no secret to it.

After-Repair Value × ~70% − Repairs = Your Offer

The ~70% covers the buyer’s costs, risk, and a modest profit — more on that below.

A quick example. Say a home would be worth $320,000 fully renovated (its ARV), and it needs about $40,000 in repairs:

$320,000 × 70% = $224,000
$224,000 − $40,000 in repairs = a roughly $184,000 cash offer

We walk through our exact version of this — with the comparable sales behind your number — on our how we calculate your offer page.

The honest part

Why don’t cash buyers pay full market value?

Because you’re not selling the same thing. A full-price, on-market sale comes with months of showings, repairs, agent commissions, and the risk a buyer’s loan falls through. A cash sale trades some of that top-line price for things a listing can’t give you:

They take on the repairs — and the risk those repairs cost more than expected.
They cover the holding costs — taxes, insurance, and utilities while the home is fixed and resold.
They pay the closing costs and skip the agent commissions.
They carry the risk — if the market shifts or the rehab goes sideways, that’s their problem, not yours.
They close fast and as-is — no repairs, no showings, no financing to fall through.

The lower number is the price of speed, certainty, and convenience. For many sellers that trade is well worth it — but you should know exactly what you’re trading.

Cash offer vs. listing

Which one nets you more?

A higher sale price isn’t the same as more money in your pocket. Here’s the honest comparison.

Selling to a cash buyer

A lower gross price — but no agent commission (~5–6%), no repairs, no holding costs, no showings, and a guaranteed close in as little as a week. What you’re offered is close to what you actually net.

Listing on the market

A higher gross price — but subtract ~5–6% commission, repair and prep costs, months of mortgage/tax/utility payments, and the risk of a buyer’s financing falling through. Best when the home is move-in ready and you can wait.

Our honest take: if your home is in good shape and you have time, a traditional listing may net more. If it needs work — or you need speed and certainty — a cash sale often wins once the fees and repairs are subtracted.

Protect yourself

How to know you’re getting a fair cash offer

The number matters less than whether the buyer will show you how they got it.

Signs of a fair, honest buyer

Shows you the comparable sales behind your number
Explains the formula openly — no black box
Covers your closing costs and charges no fees
Gives you time, with no pressure to sign
The offer at closing matches what you agreed to

Warning signs to walk away from

Won’t explain how they reached the number
Pressures you to sign quickly
Lowers the price at the last minute
Asks for any fees up front
Won’t put the offer in writing

This is exactly why we publish our formula and show you the comps — see how we calculate your offer. No black box, no games.

No obligation · takes 60 seconds

See your actual number

Enter your property address and we’ll get started — with the comps and the math behind your offer.

Or call (919) 205-0576

Straight answers

Cash offer FAQs

What percentage of value do cash home buyers pay?

Most pay roughly 70–80% of the after-repair value minus repair costs. iBuyers pay more (around 85–90%) but charge service fees; national franchises often pay less.

Do cash buyers pay market value?

Generally no. They pay less than a fully-repaired, on-market sale because they take on the repairs, costs, risk, and speed. In exchange, you skip fees, repairs, showings, and financing risk.

Why do cash buyers pay less than a listing?

A cash offer covers the buyer’s repair costs, holding costs, closing costs, and risk — and buys you certainty and speed a listing can’t. The gap narrows once you subtract a listing’s commissions and repairs.

Is a cash offer worth it?

It depends. If your home is move-in ready and you can wait, a listing may net more. If it needs work, or you need to sell fast and for certain, a cash sale often nets more after fees and repairs.

Do cash home buyers charge fees?

A reputable local cash buyer shouldn’t — we cover closing costs and charge no fees or commissions. iBuyers typically do charge a service fee of around 5% or more.

How is a cash offer calculated?

After-repair value times roughly 70%, minus the cost of repairs. We show you the comps and the math on our how-we-calculate page.

Percentages here are general industry ranges, not a quote — your actual offer depends on your home’s specifics.

Keep reading

Want to see your actual number?

Get a fair, no-obligation cash offer on your Triangle home — with the comps and the math behind it, not a black box.

Get my cash offerOr call (919) 205-0576