If you’re thinking about selling your house to a real estate investor, the first question that usually comes to mind is simple: how much will they actually pay me? The answer isn’t random—but it’s also not the same as listing your home on the open market. Investors look at your property through a different lens, and once you understand how they think, the numbers start to make a lot more sense.

The Core Formula Investors Use

Most real estate investors base their offer on something called the After Repair Value (ARV). This is what your home would likely sell for after it’s fully renovated. From there, they subtract repair costs, holding costs, and their desired profit margin.

A very common formula looks like this:

Offer Price = (ARV × 70%) – Repairs to bring the house to marketable condition

That “70% rule” isn’t universal, but it’s a good benchmark. It accounts for risk, financing, closing costs, and profit. In more competitive markets, you might see investors go up to 75–80% of ARV. In riskier situations, it might drop closer to 65%. Home prices are declining in the state of Georgia, so you may see investors drop below the 70% mark in certain markets. But, in hot zip codes and luxury zip codes, you may see investors in Atlanta go to 80%. In really high end markets like Southern California, investors will go to 90% ARV but the dollar amounts are a lot higher. 10% of a $3 million dollar house is substantial versus 10% of a $300,000 house.

Example: What This Looks Like in Real Life

Let’s say your home could be worth $300,000 after renovations, and it needs $40,000 in repairs.

• 70% of $300,000 = $210,000
• $210,000 – $40,000 in repairs = $170,000 offer

That’s the ballpark range many investors will land in.

At first glance, that number can feel low—but it’s important to understand what you’re getting in return. Also, investors can typically do the repairs cheaper than a homeowner can. If you want to get top dollar and sell on the open market, then you will have to bring your house to marketable condition. Here is a guide on how to sell your house by yourself without a realtor Can I Sell My Home Without a Realtor?

What You’re Trading for a Lower Price/Cash Offer

When you sell to an investor, you’re not just selling a house—you’re selling speed, certainty, and convenience. Here’s what that typically includes:

• No repairs or cleaning
• No agent commissions
• No showings or open houses
• Flexible closing timeline
• Cash offers with fewer contingencies

For many homeowners—especially those dealing with inherited properties, foreclosure risk, or major repairs—that tradeoff is worth it. Cash home buyers can give you this flexibility. Cash home buyers will pay cash for your home and close quickly. For more information about working with cash home buyers, see our blog How to Find Reputable Cash Home Buyers in Your Area

Why Cash Offers Can Vary So Much

Not all investor offers are the same. Two buyers can look at the same property and come up with very different numbers. Here’s why:

• Experience level: Newer investors may overpay or under calculate risk
• Exit strategy: A landlord may pay more than a flipper
• Access to capital: Investors with cheaper financing can offer more
• Local competition: In hot markets, investors tighten margins

This is why it’s smart to get multiple offers before making a decision.

How to Maximize Your Investor Cash Offer

If you’re serious about getting the best possible price, don’t just take the first number that comes your way. Here’s how to push it higher:

• Get 2–3 investor quotes to create competition
• Have a rough idea of your home’s ARV (look at nearby renovated sales)
• Be transparent about repairs—surprises lower offers later
• Ask how they calculated their numbers

You don’t need to become an expert, but a little knowledge puts you in control of the conversation.

The Bottom Line

Most investors will pay somewhere between 65% and 80% of your home’s after-repair value, minus repairs. That’s the reality of the business model.

But here’s the key: the “best” offer isn’t always the highest number—it’s the one that solves your problem with the least friction.

If your priority is maximizing price, listing with an agent may be the better route. If your priority is speed, certainty, or avoiding repairs, selling to an investor can be a strong option.

Before you decide, take a step back and ask yourself one question: What matters more right now—top dollar or total convenience? Your answer will point you in the right direction.