How Much Will an Investor Pay for My House? (NJ)
How do cash investors decide what to offer?
Most cash investors in NJ start from the home's after-repair value (ARV) — what it would sell for fully fixed up — then subtract the cost of repairs and their costs and margin. A common rule of thumb is roughly 70% of ARV minus repair costs, though a fair local buyer will adjust for your specific home and explain the math. The result is below retail but comes with no fees, no repairs, and a fast, certain close.
“What will a cash investor actually pay?” is the question every seller wants answered before they pick up the phone. Here’s the real framework most investors use in New Jersey — and how to spot a fair offer.
The starting point: after-repair value (ARV)
Investors begin with the ARV — what your house would sell for fully renovated — based on recent comparable sales nearby. That’s the ceiling. They then work backward from it.
The common rule of thumb: 70% of ARV minus repairs
A widely used starting formula is:
Offer ≈ (70% × ARV) − estimated repair costs
The roughly 30% gap isn’t all profit — it absorbs the investor’s resale commissions, closing and holding costs, and risk, with margin left over. A fair local buyer treats this as a starting point and adjusts for your home’s actual condition and the local market.
A worked example
Say comparable renovated homes in your area sell for $300,000 (ARV) and your house needs about $40,000 in work:
| Step | Amount |
|---|---|
| After-repair value (ARV) | $300,000 |
| 70% of ARV | $210,000 |
| Less estimated repairs | − $40,000 |
| Approximate cash offer | $170,000 |
Now compare that to a traditional sale of the same fixed-up home: minus 6% commission ($18,000), minus the $40,000 in repairs you’d fund yourself, minus months of mortgage, taxes, insurance, and utilities, minus possible buyer concessions — the net often lands much closer to the cash number than $300,000 suggests, and without the time, risk, or hassle.
Fair offer vs. lowball
The difference isn’t the formula — it’s transparency. A fair buyer shows you the ARV, the repair estimate, and their costs so the number is explainable. A lowball arrives with no reasoning and a ticking clock. Always ask: “How did you get to this number?”
When you request an offer from Tom, we show our work — the comps, the condition adjustments, and the costs — so you can decide with full information and zero pressure. For a deeper breakdown, see how cash home offers are calculated and cash buyer vs. iBuyer vs. agent.