Seller guide · Georgia
How cash home buyers calculate their offers
Cash home buyers start with the after-repair value (ARV), meaning what the house would sell for once fixed up. They then subtract the cost of repairs, the costs of buying, holding and reselling the house, and a profit margin. Many investors use the "70% rule" as a quick check: offer about 70% of the ARV minus repairs. That's why a cash offer is below full retail value. In exchange, you get speed, certainty, and no repairs, showings or commissions.
Updated November 2026 · Cash My House 24/7, Atlanta cash home buyers · General information, not legal or tax advice.
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Step 1: After-repair value
The buyer looks at recent sales of similar, renovated homes close by: same size, same type, same neighborhood. That's what the house could sell for once it's fixed up. It's not today's value as-is.
Step 2: Repair costs
During the walkthrough, the buyer estimates repairs: roof, HVAC, plumbing, electrical, flooring, kitchen, paint, and anything structural. Older Atlanta houses often need more behind the walls than shows on the surface, so buyers build in a cushion.
Step 3: Buying, holding and selling costs
A flip carries costs beyond repairs: closing costs on the purchase, property taxes, insurance and utilities during the renovation, financing, and then agent commissions and closing costs on the resale. Together these often run 10% to 15% of the ARV.
A worked example
| After-repair value | $300,000 |
|---|---|
| Repairs | −$45,000 |
| Buying, holding and resale costs (about 12%) | −$36,000 |
| Investor margin and risk | −$30,000 to −$45,000 |
| Approximate cash offer | $174,000 to $189,000 |
Example figures only. Every house is different.
How to compare a cash offer to listing
If you listed this same house as-is, you'd still pay commissions and closing costs, likely give repair credits after inspection, and keep paying the mortgage, taxes and utilities until it closed. If you fixed it up first, you'd pay for the repairs up front. Use the calculator on our home page to see what listing would actually put in your pocket, then compare.
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Common questions
Why are cash offers lower than market value?
Because the buyer pays for repairs, carrying costs and resale costs, and takes on the risk of surprises. You trade some price for speed, certainty and no repairs, showings or commissions.
What is the 70% rule in real estate?
It's a rule of thumb investors use: offer no more than about 70% of the after-repair value, minus repair costs. The 30% covers buying, holding and selling costs plus profit.
How do I know a cash buyer is legitimate?
Ask for proof of funds, make sure the sale closes through a licensed Georgia real estate attorney, never pay any upfront fee, and check the buyer's reviews and business registration with the Georgia Secretary of State.