A cash buyer usually pays less than your house would bring on the open market. Most start with what it would sell for fixed up, then subtract repairs, their costs and a margin for risk and profit. How much less depends on two things: the house’s condition and the type of buyer making the offer.
So there’s no single answer to how much a cash buyer will pay for a house, but you can work out what’s fair for yours. We’re a cash buyer in Lake County ourselves, so weigh our view with that in mind and check the sources we link.
What percentage do cash home buyers pay?
There’s no official figure. Estimates from the national real estate site HomeLight put offers from investors and “we buy houses” companies at roughly 50% to 80% of a home’s market value. Online “iBuyer” companies, which make quick offers based largely on computer models, pay around 85% to 90% before their fees.
Those numbers come from two different HomeLight guides, and they don’t quite agree:
- One says there’s “no concrete data,” but that the industry consensus is that investors offer 50% to 70% of a home’s value (HomeLight).
- Another puts national “we buy houses” companies at around 70% to 80% of market value. It says iBuyers pay around 85% to 90%, but usually want houses in good condition and charge service fees (HomeLight).
Search “how much do cash home buyers pay” and you’ll find plenty of other figures. Hold them all loosely. A percentage hides what matters most, which is what your house needs, and “market value” can mean the price as it sits or the price after repairs.
How much do you lose when you sell your house for cash?
Compared with full market value, often a lot. Going by the HomeLight estimates above, an investor’s offer can come in anywhere from about a fifth to half below it. But that’s not really what you lose, because getting full price usually means paying for repairs, a commission, closing costs and months of carrying costs first. The true difference is what you’d net each way.
Why are cash offers lower than market value?
A cash buyer is taking over the work, the waiting and the risk that would otherwise be yours. If you fixed the house up and sold it yourself, you’d pay for repairs, carry the house while the work got done, and pay to sell it. The buyer has to pay those same bills, then earn something for their time and money.
What you get for the lower price is real, too. You don’t fix anything, pay a commission, keep the house ready for showings, or wait to see whether a buyer’s loan comes through. Our guide to what a Gary house is worth as-is breaks down each cost a buyer subtracts.
The “70% rule,” in plain words
Many investors start from a shortcut called the “70% rule.” In plain words: take what the house would sell for once it’s fixed up, multiply by 0.7, then subtract the repair bill. HomeLight describes the same formula in its as-is selling guide.
The 30% left out isn’t all profit. It has to cover the buyer’s borrowing costs, taxes and insurance while the house sits, closing and selling costs, and surprises. The rule doesn’t always hold, either. HomeLight notes that some buyers pay as little as half of the fixed-up value, while some iBuyers pay up to 95% (HomeLight).
How do cash home buyers make money?
Most make money on the difference between their total cost (what they pay you, plus repairs and holding costs) and what the house is worth once it’s fixed up. iBuyers also charge sellers a service fee. That margin is the reason a cash offer comes in below what a fixed-up house would sell for.
How much will a cash buyer pay for your house? A worked example
These are made-up, round numbers to show how the math works. They aren’t Gary market data or an offer from anyone, including us.
Say two three-bedroom houses sit on the same block in Glen Park. Fixed up, either one would sell for about $120,000.
- House A is dated but solid. It needs paint, carpet and a water heater, about $10,000 of work.
- House B needs a roof, a furnace, new wiring and a kitchen, about $45,000 of work.
Here’s what a buyer using the 70% rule of thumb would come up with:
| Step | House A | House B |
|---|---|---|
| What it would sell for fixed up | $120,000 | $120,000 |
| 70% of that | $84,000 | $84,000 |
| Minus repairs | −$10,000 | −$45,000 |
| Rule-of-thumb offer | $74,000 | $39,000 |
| Share of the fixed-up value | About 62% | About 33% |
Same block, same fixed-up value, and one offer is nearly twice the other. Every dollar of repairs comes straight off the price. That’s why a buyer’s repair estimate matters more than any percentage, and why you should ask to see it.
House A might sell for more with an agent, since a buyer with a mortgage could likely get a loan on it. If your house looks more like House B, our page on selling a house that needs repairs walks through your options.
Why repairs weigh more on a Gary house
Repair bills don’t shrink just because a house is worth less. The U.S. Census Bureau estimates the median value of an owner-occupied home in Gary at $94,700, compared with $230,600 for Lake County as a whole (Census ACS, 2020–2024; county table). A $20,000 repair job, for example, is about a fifth of the Gary figure, but less than a tenth of the county’s.
Gary’s homes are also older. Half were built in 1957 or earlier (Census ACS, 2020–2024), and older houses are more likely to need big-ticket work. So a cash offer on a Gary house that needs work can look low as a percentage. Look at the repair estimate behind it, in dollars, before you judge it. Our Gary page has more on the local market.
What affects how much a cash buyer offers?
Condition matters most, and our as-is value guide covers which problems move the number most. A few other things matter too.
How sure the buyer is about the repairs
Buyers pad their estimates for what they can’t see. An offer built from photos or a computer model often carries a bigger cushion, or a later inspection that can lower it. A full walkthrough, basement and attic included, plus what you know about the roof, furnace and plumbing, leaves less to guess at.
How solid the nearby sales are
A buyer’s starting point is what similar fixed-up homes nearby have sold for. If there are few recent sales like that, or the block mixes redone houses with boarded-up ones, buyers are less sure of the top number and tend to price with caution.
The terms you ask for
Price isn’t the only thing in an offer. A later closing date, time to stay in the house after closing, leaving furniture behind or selling with tenants in place can cost a buyer time or money, or nothing at all. Tell every buyer up front, so you’re comparing offers on the same terms.
How do different kinds of cash buyers compare?
The kind of buyer changes both the price and what comes out of it. The percentages below are national estimates from the sources above, not quotes for any house. Our guide to cash home buyers explains how each kind works.
| Compared | Local cash buyer | iBuyer program | Listing with an agent |
|---|---|---|---|
| Typical price | Below market value; HomeLight’s estimates run from about 50% to 80% | Around 85% to 90% of market value, per HomeLight | Full market value, if the house shows and appraises well |
| Fees | No commission; ask about any fees | A service fee, plus closing costs | Agent commission, which is negotiable, plus closing costs |
| Repairs | None; the house is bought as-is | Repair costs may be taken out after an inspection | Often needed to attract buyers and satisfy a lender |
| Timing | Often weeks, not months; mostly title work | Varies by company and market | Time to prep, show, then wait on the buyer’s loan |
| Usually fits | Houses that need work, or sellers who need a firm date | Newer houses in good shape, where the program operates | Houses in good shape, when you have time |
iBuyer fees. Offerpad lists a 5% service fee plus about 1% in closing costs, and says not every home qualifies (Offerpad). Opendoor’s fee varies by market and property and shows up in each offer, along with a deduction for needed repairs (Opendoor). So a higher starting number can shrink once those come out.
Agent commissions. A 2025 Federal Reserve study put the average commission offered to buyers’ agents at about 2.7% of the price (Federal Reserve). It also found a strong tendency to split commissions evenly with the seller’s agent. Split that way, the total comes to about 5.4%. Commissions are negotiable, and our cash buyer vs. agent comparison explains the 2024 rule changes and works through a sample net.
Here’s the honest part. If your house is in good shape and you have a few months, listing with an agent will often leave you with more money, even after the commission. A cash sale tends to come out ahead when the house needs real work, a buyer’s lender might not approve it, or you need a firm date.
Which house buying company pays the most?
No company reliably pays the most, and that includes us. Offers on the same house can vary a lot. The one with the biggest number up front can leave you with less once fees, closing costs or a price cut after inspection come out. The only way to know is to compare written offers by what you’d take home. Our guide to choosing a cash offer company shows how to line them up.
What is a fair cash offer on a house?
A fair, reasonable cash offer is one whose math holds up when you check it. The fixed-up value is backed by real nearby sales, the repair estimate matches what your house needs, and the buyer can explain their costs. It’s in writing, doesn’t change without a clear reason, and leaves you a net you can compare with other offers and an agent’s estimate.
How do you get the most from a cash sale?
Get more than one written offer, ask each buyer to show the math, and compare what you’d take home rather than the headline price. You can’t control what a buyer is willing to pay, but you can make sure the fine print doesn’t cost you.
Ask each buyer to show the math
A buyer should be able to tell you three numbers: what the house would sell for fixed up, what the repairs will cost, and what they’re counting for their own costs. Ask which nearby sales they used. If one buyer’s repair estimate is far above another’s, ask what’s in it. A contractor’s quote on the biggest item, like the roof or the furnace, can settle the question.
Get more than one written offer
Two or three written offers on the same house quickly show whether one is out of line. If you’re looking at cash home buyers near you in Gary or elsewhere in Lake County, check each one out before you share personal details. Our guide to vetting a cash home buyer shows how.
Compare what you’d take home
Before you accept a cash offer on a house in Indiana, or anywhere, ask for an estimate of your net: the price, minus any fees, minus the closing costs you’d pay. Ask in writing whether the price can change after an inspection, and what happens if it does.
Then set that net beside a local agent’s estimate of what the house would sell for. You’ll see the size of the gap you’re being asked to accept, and whether the speed and certainty of a cash sale are worth it to you.
How we put a number on a house
When we make an offer on a house in Gary or anywhere in Lake County, we look at four things. They’re the house’s condition, the repairs it needs, recent sales of similar homes nearby and the costs we’ll carry. We don’t claim to pay the most, and we’ll walk you through how we got our number so you can check it against the others.
Our offer is free, in writing and carries no obligation. We charge no fees or commissions, the offer spells out who pays which closing costs, and you pick the closing date. If you’d like our number to set beside the others, you can request a written offer or give us a call.
Quick answers
How much can I expect for a cash offer on a house?
Expect less than full market value, with repairs making most of the difference. For a rough idea, take what similar fixed-up homes nearby have sold for, multiply by 0.7 and subtract an honest repair estimate. That's the rule of thumb many investors start from, though some pay more for houses in good shape. Written offers on your own house are the only real answer.
Who pays closing costs when you sell to a cash buyer?
It depends on the buyer, so get it in writing before you sign. Offerpad, for example, says the seller and buyer each pay their own closing costs, about 1% of the price. Other buyers split them differently, so ask each one for an estimate of what you'd walk away with.
Does what I still owe on my mortgage change a cash offer?
No. A buyer prices the house, not your loan. At closing, the title company pays off your mortgage, back taxes and any liens from the sale price, and you get what's left. If you owe more than the house will sell for, talk with your lender and a HUD-approved housing counselor before you sign anything.
How far below market value are cash offers in Gary?
We don't know of any public data that tracks cash offers in Gary specifically. Condition drives most of the gap, and Gary's housing is old: half its homes were built in 1957 or earlier, according to Census estimates. A move-in-ready house will draw offers much closer to market value than one with a dead furnace and a leaking roof. An agent's estimate and a few written offers are the best way to see your own gap.
