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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.
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.
2) We Calculate The Cost of Repairs
The Cost Of Repairs: is how much it would cost the US to renovate the house and make it look spectacular, ready for the market. We focus on specific repairs that add extra value such as new kitchen, additional bedrooms and bathrooms, and other critical upgrades to increase the value of the house to the maximum. This is why we can offer YOU top value for your home in ‘as-is’ condition. Why? because we are experts in maximizing the value of a house and we have access to a large network of contractors that can do the work at low-cost due to the large volume of business we give them. This allows us to offer you more money for your house NOW in ‘as-is’ condition while we take on the responsibility and cost for the full scale renovation after you have walked away with your money.
3) We Determine Our Selling Costs
The Selling Cost: includes all the costs associated with selling a property. Although we buy houses from homeowners without involving agents, we, on the other hand, to give you a higher offer, need to be able to sell the house for top value after we fix it up (this was the whole point of fixing up the property). That means we list it with an agent, who is part of our team. This means we have closing costs, agent commissions, and taxes to pay. But you don’t have to worry about this at all. It’s just part of what we need to factor in when making you a cash offer for your house in ‘as-is’ condition.
4) We Take Out Our Profits
Our Profits are reasonable. Usually 5-10%. This is due to our high level of experience and expertise. If someone without experience were to attempt this type of full scale renovation, chances are they would not be able to maximize value and receive this type of profit. This is how we can offer you TOP value for your home in ‘as-is condition: because we have the expertise to find profits where others might see not. This is a business and without a profit, we wouldn’t be able to stay in business, buy houses, pay our contractors, and plumbers, etc. This business model ensures we can provide you with the highest possible offer (otherwise no one would accept our offers in the first place and we’d be out of business!)
Basically we invest $250K out of pocket ($150K to YOU + $100K repairs), to make $20K profit for our hard work of renovating the home to rent or resell. We think this is reasonable considering the high risk we are taking. Plus, most homeowners would not even be able to maximize this level of profit because they lack the resources, finances and expertise. So we look at this as a partnership: You get your profit up-front by selling your home based on the After Repair Value (ARV). And we make a profit by putting in all the hard work.
The fine print here is that this situation doesn’t always occur, it all depends on your cash needs and timeline, but that is why you fill in the form, so we can see what options are available to you.