Should You Sell to a Cash Investor?

By Danae Aballi-Mecham

Danae Aballi-Mecham is a long-time real estate industry veteran. She has worked in various positions in the industry having grown from an independent real estate agent to running a team of 5 top producing agents.

Are you thinking about selling your home to one of those all-cash buyers advertising on billboards or the radio? It might seem like an easy way to avoid repairs, showings, and delays, but before you accept any offer, there are a few things you need to understand about how their business model works.

All-cash investors use a different formula. Unlike a traditional homebuyer who plans to live in the home, investors focus on a concept known as after-repair value, or ARV. That’s what they believe the house will sell for once it’s fixed up. From there, they subtract estimated renovation costs and apply a 20 percent discount to create their profit margin. For example, if they think your home will sell for $1 million after $100,000 in repairs, their offer may come in at around $720,000.

These estimates are based on their assumptions. What one investor considers a $100,000 renovation might be priced at $80,000 by someone else. Their view of your home’s value after repairs can also vary, which is why it’s risky to accept the first offer without seeing what others are willing to pay.

You have options. Even if you want a fast, off-market sale, it doesn’t mean you should limit yourself to one buyer. When you list the home on the open market, all buyers, including cash investors, can make offers. This creates competition and can drive up the price. You might receive multiple cash offers and choose the strongest one, with no repairs or contingencies required.

There’s also a private route with more control. If you prefer to stay off the MLS but still want fair cash offers, a trusted agent can connect you with multiple qualified investors. I work with over 20 cash buyers and can bring you several offers within 48 hours without putting your home on public sites.

Cash sales can be effective in the right situation, but it’s essential to understand their structure. If you’re considering selling your home and want to explore your options, feel free to call or text me at 949-216-8565 or email me at danae@danaeaballi.com. I’ll help you understand what your home could sell for, on or off market, and how to approach a cash sale with clarity and confidence.