How Much Do Cash Home Buyers Really Pay? (2026 Guide)

If you're considering selling your Long Island home to a cash buyer, the first question on your mind is probably: "How much will I actually get?" It's a fair question, and one that deserves a straightforward answer.

The truth is, cash home buyers typically offer between 70-85% of a home's after-repair value (ARV). But that number alone doesn't tell the whole story. Let's break down exactly how cash offers work and when they make financial sense.

How Cash Buyers Calculate Their Offers

Most legitimate cash home buyers use a formula called the Maximum Allowable Offer (MAO) to determine their purchase price. Here's how it works:

MAO = (After Repair Value × 70-85%) - Repair Costs

Let's say your Long Island home would be worth $500,000 in perfect condition, but needs $50,000 in repairs. A cash buyer might calculate:

$500,000 × 80% = $400,000 - $50,000 = $350,000 offer

This might seem low at first glance, but remember: you're getting certainty, speed, and convenience in exchange for that discount.

Why the Discount? Understanding the Trade-Off

Cash buyers aren't offering less because they're trying to take advantage of you. They're pricing in several real costs and risks:

• Repair and renovation costs
• Holding costs (taxes, insurance, utilities during renovation)
• Transaction costs when they sell
• Market risk during the renovation period
• Their profit margin for taking on the project

In return for accepting a lower price, you get:

• Guaranteed sale (no financing contingencies)
• Fast closing (7-14 days vs. 45-60 days)
• No repairs required sell as-is
• No showings or open houses
• No realtor commissions (typically 5-6%)
• No closing cost surprises

The Real Math: Cash Offer vs. Traditional Sale

Let's compare a cash sale to a traditional listing using real numbers for a Long Island home:

Traditional Sale Scenario - List Price: $450,000 - Final Sale Price (after negotiations): $430,000 - Realtor Commission (5.5%): -$23,650 - Closing Costs (2%): -$8,600 - Repairs Requested by Buyer: -$15,000 - Staging & Prep: -$3,000 - Carrying Costs (3 months): -$6,000 - Net Proceeds: $373,750

Cash Sale Scenario - Cash Offer: $365,000 - Realtor Commission: $0 - Closing Costs: $0 (we pay them) - Repairs: $0 - Staging & Prep: $0 - Carrying Costs: $0 (close in 7 days) - Net Proceeds: $365,000

The difference? About $8,750 in this example. But you also save 3-4 months of stress, uncertainty, and effort.

When a Cash Sale Makes Financial Sense

Cash offers are particularly attractive in these situations:

• Your home needs significant repairs you can't afford
• You're facing foreclosure and need to sell quickly
• You've inherited a property and don't want to manage it
• You're going through divorce and need to divide assets fast
• You're relocating for work with a tight timeline
• The property has code violations or title issues
• You're a tired landlord with problem tenants

Red Flags to Watch For

Not all cash buyers are created equal. Watch out for these warning signs:

• Offers that seem too good to be true (they usually are)
• Buyers who can't prove they have funds
• Pressure tactics or "limited time" offers
• Requests for upfront fees (legitimate buyers never charge fees)
• Buyers who won't visit the property before making an offer
• No online reviews or verifiable track record

What Sets Easy Sell Apart

At Easy Sell Property Solutions, we've been buying homes on Long Island since 2009. Here's what makes us different:

• We're direct buyers, not wholesalers who flip your contract
• We have a $10 million credit line to close any deal
• We offer up to $10,000 cash advance before closing
• We guarantee a 7-day closing or we credit you $1,000
• We pay for your moving costs anywhere on Long Island
• We have 70+ five-star Google reviews
• Billy Alvaro is a US Air Force veteran and former police officer

The Bottom Line

Yes, cash buyers pay less than market value. But when you factor in the costs, time, and stress of a traditional sale, the gap narrows significantly. For many Long Island homeowners, the certainty and convenience of a cash sale is worth more than the difference in price.

The best way to know if a cash sale makes sense for your situation? Get an actual offer. At Easy Sell, we provide free, no-obligation cash offers within 24 hours. There's no pressure and no commitment - just honest numbers so you can make an informed decision.

Frequently Asked Questions

Do cash buyers pay fair market value? Cash buyers typically pay 70-85% of after-repair value. This accounts for repair costs, holding costs, and the convenience they provide.

Why would I sell for less than market value? Speed, certainty, and convenience. You save on commissions, repairs, staging, and months of carrying costs.

How fast can cash buyers close? Most cash buyers can close in 7-14 days. At Easy Sell, we guarantee 7-day closing.

Are there any fees when selling to a cash buyer? Legitimate cash buyers never charge fees. We pay all closing costs at Easy Sell.