By Alex Rodino — Licensed Coastal Georgia broker, Keller Williams Coastal Area Partners · Last updated: May 2026
Key takeaways
- Savannah cash buyers typically pay 70% to 80% of After-Repair Value (ARV), minus estimated repairs.
- On a $329,450 median Savannah home, that produces gross offers near $230,600 to $263,600 before repair deductions.
- The Maximum Allowable Offer (MAO) formula is: (ARV × 0.70) − repairs.
- Listing on the MLS usually nets more unless the home needs heavy work, the seller needs speed, or privacy matters.
- Run both paths in parallel before signing any cash offer.
Cash home buyers and “we buy houses” investors in Savannah typically pay 70% to 80% of a home’s After-Repair Value (ARV), minus estimated repairs. On the current $329,450 median Savannah home (per Redfin’s Savannah housing market data), that produces gross offers of roughly $230,600 to $263,600 before repairs are subtracted — and often lower after.
If you have received a cash offer on your Savannah home, or you are about to, the question you actually want answered is simple: am I being offered a fair number? Below, a licensed Coastal Georgia broker walks through the exact MAO formula, a real Garden City worked example, and the specific cases where listing nets you more.
That does not mean a cash offer is always the wrong answer. Sometimes it is exactly right. But the only way to know is to see the math both ways: what a cash buyer will net you, and what listing with a working Coastal Georgia broker will net you on the same property, in the same market, this month.
This guide walks through both paths with real Savannah dollar examples and shows you when each one wins.
If you have already received a cash offer, the fastest sanity check is to compare it against what your home would net on the open market. ARC runs that comparison in under 30 minutes, free, with no obligation.
What percentage of market value do cash home buyers pay in Savannah?
Cash home buyers in Savannah usually pay 70% to 80% of After-Repair Value, also called ARV, before deducting repair costs, holding costs, risk, and resale margin.
That number matters because cash buyers are not usually pricing your home based on what it is worth today. They are pricing it based on what they believe it will be worth after repairs, then working backward from that future resale number.
The 70% to 80% of ARV rule of thumb
A simple version looks like this:
A Savannah home has an estimated repaired value of $329,450.
A cash buyer using 70% of ARV starts at:
$329,450 × 70% = $230,615
A more aggressive buyer using 80% of ARV starts at:
$329,450 × 80% = $263,560
That gives you the rough gross range: $230,600 to $263,600 before repair deductions.
If the buyer estimates $25,000 in repairs, the offer may drop to $205,000 to $238,000. If they estimate $50,000 in repairs, the offer may drop to $180,000 to $213,000.
That is why the repair estimate is where many sellers lose money. A cash buyer’s offer can look like “70% of value,” but the real net may land closer to 60% once repairs are deducted.
Why the percentage varies
The offer percentage changes based on the property and the seller’s situation.
A move-in-ready home in Pooler, Richmond Hill, Wilmington Island, or Ardsley Park may attract stronger offers because the investor risk is lower. A home with foundation issues, major roof damage, failed septic, fire damage, flood damage, mold, or title complications will usually get a steeper discount.
Neighborhood also matters. A $35,000 repair budget hits differently in Ardsley Park than it does in a lower-priced subdivision. In a higher-ARV area, the same repairs may represent a smaller percentage of the final value.
Investor competition matters too. When more local investors want inventory, offers move closer to 75% or 80% of ARV. When inventory sits longer or financing gets expensive, offers slide closer to 65% or 70%.
The seller’s timeline matters most of all. Investors price urgency. If they believe you need to close in 7 days, they will usually price the offer accordingly.
How do cash home buyers calculate their offer? The MAO formula explained
Most cash buyers use some version of the Maximum Allowable Offer formula, often called MAO.
The common investor formula is:
Maximum Allowable Offer = (After-Repair Value × 70%) – Estimated Repair Costs
That is the same basic “70% rule” explained in many real estate investing guides, including Rocket Mortgage’s breakdown of the 70% rule in house flipping.
Some Savannah investors use 75% or 80% in stronger submarkets. Some use 65% for risky properties, slow-moving properties, or homes with unknown repair exposure.
The important part is this: the seller often sees the final offer, not the assumptions behind it.
That is why you want to ask:
- What ARV are you using?
- What comparable sales support that ARV?
- What repairs are you deducting?
- Are you planning to assign the contract?
- Can you show proof of funds?
If the buyer will not explain the math, that does not automatically mean the offer is fake. It does mean you should get a second opinion before signing.
A worked example on a Savannah-area home
Let’s use a simple Garden City example.
The home is a 3-bed, 2-bath ranch that needs repairs but is not a full teardown.
| Item | Cash offer path |
|---|---|
| Estimated After-Repair Value | $290,000 |
| 70% of ARV | $203,000 |
| Buyer’s estimated repairs | -$25,000 |
| Maximum Allowable Offer | $178,000 |
| Typical seller closing fees | $0 to low |
| Approximate seller net | $178,000 |
Now compare that with a realistic listed-sale path.
| Item | Listed sale path |
|---|---|
| As-is list price | $260,000 |
| As-is sale price | $250,000 |
| Commission estimate at 6% | -$15,000 |
| Seller closing costs estimate at 1.5% | -$3,750 |
| Approximate seller net | $231,250 |
The difference is $53,250.
That does not mean the listed sale is automatically better. It means the seller is paying about $53,250 for speed, certainty, no repairs, no showings, and less hassle.
For some sellers, that trade is worth it. For others, it is not.
Cash offer vs. MLS listing: side-by-side
| Factor | Cash offer path | MLS listing path |
|---|---|---|
| Typical seller net (on a $329K Savannah home) | $178,000 to $210,000 | $225,000 to $245,000 |
| Time to close | 7 to 21 days | 45 to 75 days |
| Repairs required | None | Minor to moderate |
| Showings | None | Yes |
| Certainty of close | Very high | High |
| Best for | Heirs, distressed condition, hard deadlines, privacy needs | Move-in-ready homes, sellers with 60+ days of flexibility |
Bottom line
On the current $329,450 Savannah median home, expect cash offers of roughly $230,600 to $263,600 before repairs, or about $178,000 to $210,000 net after typical deductions. A prepared MLS listing on the same home typically nets $225,000 to $245,000. The gap, usually $40,000 to $60,000, is what you pay for speed, certainty, and skipping repairs.
When is the cash offer actually the right answer?
A cash offer is not automatically bad. In some situations, it is the cleanest, least stressful answer.
Cash may be the right call when the seller needs certainty more than maximum price.
That can happen when you are an out-of-state heir dealing with an inherited or estate home, and you cannot manage repairs, utilities, vendors, cleanout, and showings from another state.
It can also happen when the property condition makes a financed buyer unlikely. A failed septic system, major foundation damage, fire damage, flood damage, roof failure, mold, or severe deferred maintenance can shrink the buyer pool quickly.
A hard timeline can also change the math. PCS orders, divorce settlement deadlines, foreclosure timelines, medical expenses, and family emergencies may make a 7-to-14-day closing more valuable than a higher sale price months later.
Privacy matters too. Some sellers do not want neighbors, family, tenants, or the public walking through the house. For a sensitive family situation, private sale can be worth the discount.
If two or more of those apply, the cash offer may be the right answer even at 70% of ARV.
ARC is not anti-cash-offer. We recommend the cash path when the situation calls for it. The only mistake is accepting the first number without knowing what the other path would likely net.
When does listing with a Coastal Georgia broker net more?
Listing with a broker usually nets more when the home is structurally sound, broadly mortgage-eligible, and the seller has at least 60 days of flexibility.
That describes a large share of Coastal Georgia homes.
If the roof is functional, the utilities are on, the title is clean, and the home can pass basic buyer financing expectations, the open market usually creates a better result than a direct investor offer.
Listing tends to win when:
- The home is structurally sound.
- The seller can wait 60 to 120 days.
- The seller can tolerate some showings.
- The home is in a desirable submarket.
- The seller wants to maximize equity.
This is especially true in areas like Ardsley Park, Pooler, Richmond Hill, and Wilmington Island, where buyer demand can still support a strong sale if the home is priced and presented correctly.
The difference is not just sale price. It is competition.
A direct cash buyer is one buyer. The MLS is a market. When a home is exposed to buyers, agents, investors, relocation buyers, and financed owner-occupants, the seller gets a better read on actual demand.
That does not mean every home should be fully renovated before listing. Sometimes the best move is a light cleanout, basic repairs, honest pricing, and an as-is MLS listing. That approach can still produce a much better net than a private investor offer.
If you are deciding whether to list it on the MLS or take the cash offer, do not compare gross sale prices. Compare net proceeds, timeline, risk, certainty, and hassle.
How does ARC’s Private Options approach compare?
ARC’s Private Options approach exists because most sellers do not need a lecture. They need numbers. Instead of telling every seller to list, or every seller to take cash, ARC can run both paths in parallel. That means we can prepare the home for a possible MLS launch while also sending the opportunity to a curated group of serious cash buyers. The seller then sees two sets of numbers:- The strongest real cash offer available now
- The projected MLS net after commission, closing costs, repairs, and timeline
Why parallel-path matters
Cash buyers behave differently when they know they are competing with an MLS launch. If a buyer thinks they are the only option, the offer often starts near the bottom of the range. If the buyer knows the seller has a broker, a pricing strategy, and an open-market alternative, the offer often moves closer to the top of the range. That can mean thousands of dollars. For many sellers, the best result is not “cash buyer or MLS.” It is making both sides compete, then choosing the cleaner net. See what ARC’s Private Options approach can net you.Red flags when a Savannah cash buyer is lowballing you
Most Savannah cash buyers are legitimate businesses. The bigger question is not whether they are real. The bigger question is whether the offer is fair for your property. Watch for these red flags before signing.The offer is below 60% of ARV with no clear explanation
A low offer may be justified if the house has major structural problems, title issues, or severe repairs. But if the home is livable and the buyer gives no clear reason, get a second opinion.The buyer refuses to share comps or repair line items
You do not need their entire business plan, but you should be able to see what comparable sales they used and what repairs they are deducting.The contract has a long inspection period
A 10-day or longer inspection period can mean the buyer plans to renegotiate after locking the property up. That is not always bad, but the seller should understand the risk.The contract is assignable without a clear explanation
An assignable contract can mean the buyer plans to sell the contract to another investor and keep the spread. That is common in wholesaling, but it should be disclosed clearly.The buyer uses pressure tactics
Be careful with phrases like “this offer expires in 24 hours” or “we can close in 7 days only if you sign now.” Real buyers can move quickly without forcing panic.No proof of funds is provided up front
If the buyer says they can close cash, they should be able to show proof of funds or a credible funding source before you take the property off the market.
Frequently asked questions
How much do cash buyers pay for a house in Savannah?
Cash buyers in Savannah typically pay 70% to 80% of the home’s After-Repair Value, then subtract estimated repair costs. For a Savannah home with an ARV of roughly $329,000, that creates a gross cash-offer range of about $230,000 to $263,000 before repair deductions.
Is selling to a cash buyer faster than listing in Savannah?
Yes. A typical cash closing can happen in 7 to 14 days if title is clean and both sides are ready. A listed sale that depends on buyer financing often takes 60 to 120 days from preparation to closing. Speed is the cash buyer’s real product, and the discount is the price the seller pays for that speed.
What is the 70 percent rule that Savannah investors use?
The 70 percent rule, sometimes called the MAO formula, says an investor’s maximum offer is usually 70% of the home’s After-Repair Value minus estimated repair costs. Rocket Mortgage explains the same formula in its guide to the 70% rule in house flipping.
How much do I lose if I sell to a cash buyer instead of listing in Savannah?
On a typical Savannah home, the spread between a cash offer and a net-after-commission MLS sale often runs $30,000 to $80,000. The spread is smaller for distressed properties and larger for move-in-ready properties in desirable neighborhoods.
Are cash home buyers in Savannah legitimate?
Most are legitimate businesses, though their offers are aggressive by design. The legitimacy question matters less than the math question: is this offer fair for this property? A broker can usually answer that in under 30 minutes by running comps and comparing the cash offer to a realistic open-market net.
Can I negotiate a cash offer in Savannah?
Yes, and most sellers do not. The opening offer is often 5% to 10% below what the buyer is actually willing to pay, especially when the buyer knows you are considering listing the property instead.
Closing thoughts and next steps
There is no version of this decision that is purely about money.
Speed has a price. Privacy has a price. Avoiding showings has a price. Not fixing the house has a price.
Some sellers are willing to give up $40,000 or $60,000 for those things, and they are not wrong to do so. Some sellers find out, after running the math, that the $40,000 was the difference between a comfortable next step and a stressful one. They are not wrong either.
The point is to see the math before you sign. Not after.
If you have received a cash offer and you want a no-pressure look at what your home would net on the open market, or if you want ARC to run a parallel-path test where cash buyers and MLS buyers compete for the same property, reach out.
We will run the comparison, walk you through it in plain language, and tell you honestly which path makes more sense for your situation.
If it is the cash offer, we will say so. If it is not, we will show you why.
Either way, you will know.
Get the math on your home before you sign
If you are selling in Savannah, Pooler, Garden City, Wilmington Island, Richmond Hill, Rincon, or anywhere nearby, ARC can help you compare the cash-offer path (sometimes searched as “sell my house fast Savannah,” “we buy houses Savannah,” or “iBuyer Savannah”) against the open-market path.
No commitment. No broker pitch. Just the numbers.
Request a home valuation, ask about Private Options, or work with our team to compare your options.
Phone: +1-912-351-8935
Email: info@thearcplatform.com
Start here: Request a home valuation
Sources and references
- Redfin — Savannah, GA housing market data (median sale price, accessed May 2026)
- Rocket Mortgage — The 70% rule in house flipping (industry reference for MAO formula)
- Alex Rodino, Licensed Coastal Georgia broker, Keller Williams Coastal Area Partners — deal-level Savannah cash-offer data, 2024–2026
Data current as of May 2026. Median home prices update monthly; verify with Redfin for the latest figure.
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