Think That Investor Offer Is Too Low? Here’s What You’re Missing
When you’re selling your home, it’s natural to want the biggest number possible. But when an investor or home-buying company makes an offer, it can sometimes come in lower than what you were hoping for. If you think that investor offer is too low, Here’s what you are missing.
At Want To Sell Homebuyers, we completely understand that initial reaction — and we want to shed some light on why that happens and why it’s not a bad thing. When you understand how investors make offers, it all starts to make sense.
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Sellers Usually Want a Fast, Easy Sale — Not a Perfect One
Most sellers who reach out to an investor aren’t chasing top dollar — they’re looking for speed, simplicity, and certainty. You may be dealing with a home that needs work, facing financial pressure, relocating, or just ready to skip the endless showings, repairs, and negotiations.
When you sell to an investor, you’re trading some price for peace of mind. Investors buy as-is, cover closing costs, skip inspections, and can close in as little as a week. That convenience has real value — especially when you factor in the time, stress, and money saved.
Sellers Often Overestimate What Their Home Will Sell for After Repairs
Here’s a big one. Many homeowners overestimate what their property would sell for if it were fully fixed up. It’s easy to look online, find the highest-priced home in your area, and think, “Mine could sell for that!”
But those top-tier sales usually involve homes that are in perfect condition, in the most desirable pockets of the neighborhood, or on larger lots with more square footage.
An investor, on the other hand, will take a conservative approach. They’ll estimate the after-repair value (ARV) based on the 2nd, 3rd, or 4th most expensive comparable home in the area — not the absolute top one.
They’ll also study how strong the market really is. If there are a lot of homes for sale but very few pending sales, that’s a clear sign of a weak market — meaning it could take longer (and a lower price) to resell the property. That market reality directly impacts how much they can safely offer today.
Sellers Often Underestimate the True Costs of Selling Traditionally
Many sellers don’t realize just how expensive it can be to sell the traditional way. Once you factor in:
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Agent commissions (5–7%)
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Buyers’ closing costs (which sellers often contribute toward)
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Sellers’ own closing costs and fees
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Repairs from inspection requests
…it adds up fast.
When you compare that to an all-cash investor who covers your closing costs and buys as-is, that “lower offer” can end up netting you nearly the same amount — with a whole lot less headache.
Sellers Don’t Always See the Buyer’s Side of the Equation
It’s easy to forget that the buyer (especially an investor) has plenty of their own costs too. When investors buy a home, they pay:
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Their own closing costs, including prorated taxes, attorney fees, loan origination fees, and title insurance
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Carrying costs, such as loan interest, property taxes, utilities, and builders’ risk insurance
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All your closing costs as the seller, so you walk away with a clean number
That’s a lot of upfront and ongoing expenses before they’ve even lifted a hammer to start repairs.
Sellers Often Underestimate the Cost (and Scope) of Repairs
Every seller thinks their home “just needs a little paint and new carpet.” But once you start peeling back layers — roofs, HVAC systems, kitchens, bathrooms, foundations — those numbers add up fast.
Investors must assume everything that could need fixing will need fixing, and budget accordingly. It’s not pessimism; it’s protection. One overlooked issue can blow an entire rehab budget.
And of course, we can’t ignore the one cost no one ever writes down: emotional equity.
Every seller has it! The memories made in a home — the birthdays, the holidays, the “we’ll fix that someday” projects — all make it feel worth more. Unfortunately, buyers (and appraisers) don’t factor in that sentimental value, even though we all wish they would.
Investors Take on Serious Risk (and Deserve a Reasonable Profit)
For an investor to take on all these costs — the repairs, carrying costs, closing fees, and market risk — they need to project at least a $20,000–$30,000 profit margin to make the deal worthwhile.
That might sound like a lot, but remember: it often takes 4–7 months to complete the project, and any small miscalculation — a hidden plumbing issue, market slowdown, or price drop — can wipe that profit out completely.
No one wants to spend half a year working on a property just to lose money!
The Bottom Line
When you sell to an investor, you’re not just selling a house — you’re selling a project with risks and costs attached.
At Want To Sell Homebuyers, we pride ourselves on being open and honest about how we calculate our offers. We walk you through the numbers step by step, so you understand exactly what goes into the price we present.
Our goal isn’t just to buy houses — it’s to create win-win solutions that make sense for you and for us. Because the truth is, if it doesn’t work for both sides, it doesn’t work at all.