How much cash we offer for your house is obviously a big question you’d like answered. Here on this page, we will explain the entire process, how we buy houses in cash, first through a quick overview, then followed by a more detailed actual breakdown of an offer we have recently made a homeowner just like you.
Once we receive your information, we figure out how much your house would be worth on the current market if it were freshly completely renovated, everything brand new, all fixed up, clean, updated, and beautiful.
During the appointment, we figure out how much it would cost us to fix it all up. We now know how much money we would sell it for, and how much it cost us to sell it. Basically, (there is a bit more involved) based on these numbers we present you an offer that is fair.
If you like the offer, fantastic, we can close on your schedule. You get the cash; we get the deed, and everyone is happy!
Our offers are based on the After Repaired Value of your house. This way we can make the highest fair offers for your house where we can walk away with our profits, and you with the cash you need. Here is a breakdown of how the offer is generated.
[Your Offer] = [After Repair Value] – [Cost Of Repairs] – [Our Selling Costs] – [Our Minimum Profit]
1) We Determine The After Repairs-Market Value Of Your House.
2) We Calculate The Cost of Repairs
3) We Determine Our Selling Costs
4) We Take Out Our Profits
Your offer will be the market value of your house completely fixed up, minus all the costs associated with us bringing the house to its completely fixed-up condition, minus our profits (of course).
Imagine for a moment that you have a house in complete disrepair, and therefore you can’t sell it for much, (in fact, you probably wouldn’t even be able to list it as banks will not loan against houses in severe disrepair).
Now, let’s say that the house in its current condition is worth $50K (so the “as-is” value is $50,000), but let’s say that if you were to put $100K into the house, you would be able to sell it for $200K. (Yes this is actually the same house.) Sadly you either don’t have the funds or the will, time, or energy to deal with contractors, repairs, and all the stress that comes with it.
Cash buyers like us could come in and offer you $80K for your home, which is $30K MORE than the current value of your house. For us, this works because, if your house is worth $50K, but we offer you $80K for your house and we put in $100K making the house worth $200K, means we then spend $180K and we made $200K netting us a profit (let’s ignore all other costs and taxes for the sake of simplicity) of $20K.
Please visit our About Us page to learn more about what we are all about. I think we are quite interesting, but you’ll be the judge 🙂