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Selling your home can be a difficult emotional and financial decision, and the allure of a fast, hassle-free cash offer from an investor can be tempting. But let’s break down the numbers and see how much you might actually be giving up.
How Investor Offers Work
Cash investors typically buy homes at a discount with the intention of reselling them for a profit or holding them as long-term rentals. To make it worth their while, they follow a general formula:
Investor Offer ≈ 70% of Market Value – Estimated Repair Costs
For example, if your home’s market value is $400,000, and repairs are estimated at $40,000, here’s how an investor might structure their offer:
70% of $400,000 = $280,000
Minus $40,000 in repairs = $240,000 cash offer
That’s a $160,000 loss compared to selling on the open market!
Why Do Sellers Accept These Offers?
While the loss can be significant, some homeowners still take cash offers due to:
✅ Needing a fast sale due to financial hardship or relocation
✅ Avoiding costly repairs, showings, and agent commissions
✅ Dealing with inherited or distressed properties
Is It Worth It?
For some, the speed and certainty of a cash offer makes sense. But if you put your home on the market—even as-is—you could net thousands more in your pocket. You see, a priced right home should sell quickly and the buyer competition the multiple listing service provides is likely to bring the best possible sale price. Many buyers today are willing to take on renovations if priced appropriately. There are even mortgages available to cover the buyer's renovation costs after closing.
Before making a decision, weigh your options. I'll
help you compare investor offers with your home’s actual market value to see what makes the most financial sense for you.
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