How do investors decide what to offer?

Investor offers typically get built backward from resale value: an investor estimates what the home will be worth after repairs, subtracts renovation costs and a required profit margin, then lands on a purchase price. That process usually produces a lower number than a retail buyer would pay for the same home in good condition. Joel Boss can show a seller what a retail listing would likely bring by comparison, so an investor offer can be weighed against a real alternative.