Question 1

How much do cash home buyers pay for a house?

Accepted Answer

Most cash buyers pay roughly 70 to 73% of the after-repair value, minus the cost of repairs. On a house worth $300,000 fixed up needing $54,000 of work, that comes to roughly $175,800 before any mortgage payoff is subtracted.

Question 2

Does a mortgage or lien reduce my cash offer?

Accepted Answer

Yes, dollar for dollar. Any mortgage payoff or lien is paid at closing before you receive anything, because a title company will not issue clear title until they are cleared. If your payoff is close to or above the offer, a cash sale may not be possible.

Question 3

What does 'subject-to' or debt relief mean when selling a house?

Accepted Answer

A buyer takes over your mortgage payments while the loan stays in your name. It is a way to stop the monthly payment, not a way to receive close to full market value. Your credit remains exposed for as long as the loan is open, and nearly every mortgage has a due-on-sale clause letting the lender demand the full balance when title transfers. Always have your own attorney review an agreement like this.

Question 4

What is a fix-and-list partnership or novation agreement?

Accepted Answer

An investor pays for the renovation while you remain the owner on title, then the house sells at full retail price and you receive an amount agreed in writing before work begins. It typically nets more than a cash offer because the house sells for what it's worth, but it takes longer and only works when the repair cost is a reasonable share of the home's value.

See Your Options. Maximize Your Payout.

Your Estimated Exit Options

Want to lock in these numbers?