How Much Do Cash Buyers Pay for Houses?
The honest answer: typically 70–85% of market value for a legitimate direct buyer — but the range is wide depending on who's making the offer. Here's how to tell the difference and make sure you're getting a fair deal.
The Short Answer
A legitimate direct cash buyer will typically offer 75–85% of your home's after-repair value (ARV), minus estimated repair costs. On a $300,000 home in average condition, that's roughly $210,000–$255,000.
Wholesalers often offer 60–70% of ARV. iBuyers offer 90–95% but charge 5–8% in fees. A traditional listing nets the most but takes 45–90+ days and requires repairs, commissions, and carrying costs.
Cash Buyer Types: What Each One Actually Pays
Not all "cash buyers" are the same. Here's how the four main types compare on offer price, fees, and reliability.
| Buyer Type | Offer Range | Fees | Timeline | Reliability |
|---|---|---|---|---|
Direct Cash Buyer (Local)Best Value Alder Heritage Homes | 75–85% of ARV | None — buyer pays closing costs | 7–21 days | High — closes with own funds |
iBuyer (Opendoor, Offerpad) Opendoor | 90–95% of ARV | 5–8% service fee + repair deductions | 14–30 days | Medium — subject to inspection |
Wholesaler Bandit sign operators | 60–70% of ARV | May charge assignment fees | 30–60 days (finding a buyer) | Low — may back out or reassign |
Traditional Listing MLS with agent | 95–100% of ARV | 5–6% commission + repairs + closing costs | 45–90+ days | Medium — subject to financing |
Real Dollar Example: $300,000 Home, $25,000 in Repairs
Here's what each type of buyer would actually put in your pocket after all fees and costs.
*Example only. Actual numbers vary by property, condition, and market. Direct cash buyer offer assumes no repair deductions and buyer pays all closing costs.
How Cash Buyers Calculate Their Offers
Every legitimate cash buyer uses some version of this formula:
Offer = (ARV × Buyer Margin) − Estimated Repairs − Closing Costs
ARV = After Repair Value (what the home is worth fully fixed up)
Determine After Repair Value (ARV)
The ARV is the estimated market value of your home if it were fully repaired and updated. Cash buyers determine this by pulling recent comparable sales (comps) — homes similar to yours that have sold in the last 3–6 months in your neighborhood. A licensed agent will use the MLS; a wholesaler may use Zillow estimates (which are often inaccurate).
Estimate Repair Costs
The buyer walks through the property (or reviews photos) and estimates the cost to bring it to market-ready condition. This includes roof, HVAC, plumbing, electrical, flooring, paint, landscaping, and any structural issues. These costs are deducted from the offer.
Apply the Buyer's Margin
The buyer's margin covers their holding costs (property taxes, insurance, utilities during renovation), financing costs (if they use a hard money loan), and profit. A direct cash buyer with low overhead can offer a higher margin — typically 75–85% of ARV. A wholesaler needs to leave room for the end investor's profit, so they offer 60–70%.
Account for Closing Costs
A legitimate cash buyer pays all standard closing costs — escrow, title, transfer taxes. This is typically $3,000–$8,000 that the buyer absorbs, not you. Some buyers (especially iBuyers) deduct closing costs from the offer or charge service fees. Always ask who pays closing costs before signing anything.
Red Flags: Signs You're Dealing with a Wholesaler
Wholesalers present themselves as cash buyers but pay significantly less — and may back out of the deal entirely. Watch for these warning signs:
Frequently Asked Questions
How much do cash buyers typically pay for houses?
Cash buyers typically pay 70–85% of a home's after-repair value (ARV), minus estimated repair costs. For a home worth $300,000 in good condition, a legitimate cash buyer might offer $240,000–$270,000. Wholesalers and iBuyers often pay less — sometimes 60–70% of ARV. The exact percentage depends on the home's condition, local market, and the buyer's business model.
Why do cash buyers pay less than market value?
Cash buyers pay less because they're taking on risk and providing convenience. They buy as-is (no repairs required), close fast (no 45-day escrow), and use their own funds (no financing contingency). They also factor in repair costs, holding costs, and profit margin. In exchange, you get certainty, speed, and zero hassle. For many sellers, the discount is worth it.
What is the 70% rule for cash buyers?
The 70% rule is a common investor guideline: offer no more than 70% of the after-repair value (ARV) minus estimated repair costs. Example: ARV $300,000, repairs $30,000 → max offer = (0.70 × $300,000) − $30,000 = $180,000. This is a rough guideline, not a hard rule. Legitimate cash buyers in competitive markets often pay 75–85% of ARV.
How do I know if a cash offer is fair?
Ask for a Broker Opinion of Value (BOV) — a written document showing the comparable sales used to calculate your home's market value. A legitimate cash buyer will provide this for free. Also request proof of funds, check the contract for 'and/or Assignee' language (a red flag for wholesalers), and compare the offer to recent sales in your neighborhood.
Do cash buyers pay closing costs?
Legitimate direct cash buyers typically pay all standard closing costs — escrow fees, title insurance, transfer taxes, and recording fees. This can save you $3,000–$8,000 compared to a traditional sale. Wholesalers and some iBuyers may charge fees or deduct closing costs from your offer. Always ask upfront.
What's the difference between a cash buyer and a wholesaler?
A cash buyer purchases your home directly with their own funds and closes the transaction. A wholesaler puts your home under contract and then sells that contract to a real investor for an assignment fee — they never actually buy your home. Wholesalers often present themselves as cash buyers but use 'and/or Assignee' language in contracts. Always ask: 'Are you the actual buyer, or will you assign this contract?'
How much do iBuyers like Opendoor pay?
iBuyers like Opendoor typically pay 90–95% of market value but charge service fees of 5–8% plus repair deductions. Net proceeds are often similar to or lower than a local cash buyer, with less flexibility on closing timeline and condition. iBuyers also only operate in select markets and have strict condition requirements.
How much will Alder Heritage Homes pay for my house?
We calculate offers based on your home's after-repair value (ARV) using recent comparable sales, minus estimated repair costs and our operating margin. We typically offer 75–85% of ARV for homes in average condition. We provide a free Broker Opinion of Value with every offer so you can verify our math. Call (559) 281-8016 for a no-obligation offer within 24 hours.
Get a Fair Cash Offer for Your Central Valley Home
Alder Heritage Homes is a licensed California real estate agent (DRE #02219124) and direct end buyer. We provide a free Broker Opinion of Value with every offer so you can verify our number is fair — and we'll tell you honestly if listing with an agent would net you more.