What House Flippers Pay: How Much Will an Investor Offer for My Home?
October 1, 2026 · 8 min read · By Onias Derilus, Broker
How investors price an offer on your home, why the number is lower than market value, and how to compare a cash offer with what you would net from a listing in Palm Beach County.
If you want to know what house flippers pay, start with how they do the math, because their offer is built backward from the price they hope to sell for after repairs. Most Palm Beach County owners who get a cash letter or a call from an investor ask the same thing: is this offer fair? This guide explains the formulas flippers use, the costs they plan for, and how to compare their number with what a listing would put in your pocket.
Key takeaways
- Many flippers start with the 70% rule: about 70% of the after-repair value, minus the repair budget.
- The typical U.S. flip in early 2026 made about $66,000 in gross profit, a 25.4% gross return, before rehab and holding costs, according to ATTOM data reported by HousingWire.
- Investors also price in loan costs, taxes, insurance, utilities and two sets of closing costs.
- An investor offer trades price for speed and certainty. A listing usually nets more if the home needs only light work.
- Get a value estimate and a net sheet before you accept any cash offer.
What house flippers pay, in one formula
The most common shortcut is the 70% rule. A flipper estimates the after-repair value, or ARV. That is the price the home should sell for once it is fixed up. Then they multiply the ARV by 0.70 and subtract the repair budget. The result is the most they want to pay.
Here is an example with round numbers. Say your home would sell for $500,000 after a full update. Seventy percent of that is $350,000. If the investor expects $60,000 in repairs, their top offer is about $290,000. Their first offer may be lower still, because they leave room to negotiate.
The 30% gap is not all profit. It has to cover the costs of buying, holding and selling, plus a margin for risk. Our guide to the 70 rule for flips shows the formula from the investor's side.
Why the ARV matters so much
The ARV drives every number in the offer. Flippers set it by looking at recent sales of updated homes nearby. If they pick comparable sales on the low side, the offer drops. So it pays to know your own numbers. Ask which sales they used, and check them against a market analysis from a local agent.
How repair estimates move the offer
Repairs come off the top, dollar for dollar. Roofs, windows, electrical panels, plumbing and kitchens are the big items in older South Florida homes. Investors often pad their budgets to cover surprises behind the walls. That is reasonable from their side, but it also means a generous repair number lowers what you get.
The costs that shape what house flippers pay
A flipper also has to plan for the months between buying and reselling. ATTOM data reported by HousingWire put the median time to flip at 165 days in the first quarter of 2026. During that time, the investor pays for the money, the property and the sale.
- Loan interest and points on short-term financing, or the cost of tying up their own cash.
- Property taxes, insurance, utilities and lawn care while the home sits empty.
- Permit fees and the time it takes to get inspections.
- Closing costs on the purchase, then again on the resale.
- The commission and concessions needed to sell the finished home.
Florida's documentary stamp tax adds to that. The state charges 70 cents per $100 of the price on deeds, according to the Florida Department of Revenue. Who pays it depends on the contract, but somebody pays it on each sale.
Profit targets in the current market
The ATTOM figures help set expectations. The typical flip in early 2026 earned about $66,000 in gross profit, which is the gap between the purchase and resale prices. That worked out to a gross return of 25.4%. In addition, 61.1% of flipped homes were bought with cash. Gross profit comes before rehab, loans and holding costs, so the net is much smaller. Flippers need that cushion, and it shows up in their offers.
Wholesalers versus flippers
Not every cash buyer plans to fix the home. Some are wholesalers. A wholesaler signs a contract with you and then sells that contract to another investor for a fee. As a result, the offer you get has to leave room for two profits.
Read the contract for an assignment clause, which lets the buyer hand the deal to someone else. Also look for a long inspection period with an easy exit. Those terms are common, but they mean the buyer can walk if they cannot find an end buyer. Ask for proof of funds and a short closing window before you sign.
What house flippers pay versus your listing net
To judge a cash offer, compare it with what you would net from a listing. Start with a realistic sale price for your home in its current condition, or after light fixes. Then subtract commission, closing costs, any repairs you choose to make, and the cost of carrying the home until closing.
Next, put the investor's offer through the same math. A cash buyer often pays some closing costs and skips the inspection repairs, so their net can be closer to the offer price. Then look at the gap between the two. If a listing nets you $60,000 more and you can wait 60 to 90 days, the listing usually wins. If the home needs major structural work or has title issues, the gap may shrink.
The local market for each option
Palm Beach County still favors sellers of single-family homes. In August 2026, the median single-family price was $650,000, with a median of 40 days to contract and 3.5 months of supply, according to Miami Realtors. Condos and townhouses had a $300,000 median, 69 days to contract and 6.7 months of supply.
In other words, a house that needs cosmetic work in West Palm Beach or Lake Worth Beach can still draw many retail buyers. Condos are slower, so a cash offer may look better there. Prices also differ across the region, so a home in Port St. Lucie will have a different ARV from one near the coast.
Red flags to watch for
Most investors are honest, but a few tactics should make you slow down. Be careful with a buyer who pushes you to sign the same day, or who will not put a deposit with a title company. Also watch for an offer that drops sharply after the inspection, when you have already turned other buyers away. That late cut is sometimes the plan from the start.
In addition, never sign a deed, a power of attorney or an option before closing unless your own attorney has read it. A real buyer will wait a day while you check their terms.
When an investor offer makes sense
A cash sale can be the right call in some cases. For example, the home may need a new roof that blocks insurance or financing. You may be dealing with an inherited house in another state, or a tenant you do not want to manage. Some owners simply value a fixed closing date more than the last dollar.
Still, compare the offer with a listing before you decide. Many sellers find that a few small fixes and a good marketing plan close most of the gap.
What house flippers pay for homes that need little work
The 70% rule works best on homes that need a lot of repair. For a home that is already clean and dated, the math often looks worse for you. The investor still needs the same margin, but there is less value for them to add. As a result, the offer can land well below what a retail buyer would pay.
For example, take a home worth $450,000 as it stands, which might reach $500,000 with new paint, flooring and fixtures. Under the 70% rule, an investor would offer about $350,000 minus repairs. Meanwhile, a retail buyer may pay close to $450,000 for the home as it is. So for light-repair homes, a listing usually comes out ahead. These figures are an example only.
How to get competing offers safely
One offer tells you little. Several offers tell you what the market will pay. So invite more than one buyer to bid, and set a deadline. A listing on the MLS also puts your home in front of investors and retail buyers at the same time, which lets them compete.
- Get a value estimate for the home as it is and after light updates.
- Ask each buyer for proof of funds and the comparable sales behind their ARV.
- Read the inspection period, assignment clause and deposit terms closely.
- Use a title company you choose, and never sign a deed before closing.
- Compare each offer's net, not just its price.
Frequently asked questions
What percentage of market value do house flippers pay?
Many start near 70% of the after-repair value, minus repairs. So the offer as a share of today's market value depends on the home's condition. A home that needs little work should get a higher share.
What closing costs do house flippers pay?
Many cash buyers offer to pay some or all of the closing costs. Read the contract to see which costs they cover, and compare the net, not just the headline price.
Is the 70% rule fair to sellers?
It is fair from an investor's point of view, because it covers their costs and risk. Whether it is fair to you depends on what a listing would net. Run both numbers.
How fast can house flippers pay and close?
A cash buyer with funds ready can often close within a few weeks, once title work is done. Ask for proof of funds and a firm closing date in the contract.
Sources
- HousingWire, ATTOM Q1 2026 home flipping report
- ATTOM, Q1 2026 home flipping profit margins
- Florida Department of Revenue, documentary stamp tax
- Miami Realtors, Palm Beach County August 2026 market report
Got a cash offer on your home? Compare a cash offer vs. listing with a Pure Equity agent, with no obligation. We will show you what your home could sell for and what you would net, side by side. Start with a free home valuation. If you are buying your next home, our agents can help with that move too. Talk with our team.
