How We Buy Houses Cash Investors Calculate Cash Offers March 4, 2023 By We Offer Cash For House WeOfferCashForHouse.com:So let’s cut the fluff and get down to it on how it works with selling your home. After receiving the details about your house, we begin our analysis to formulate your free cash offer. For example, let’s say that your house has three bedrooms and two bathrooms, and its size is 1,300 square feet and was built in 1957. We then would compare your property to all your friendly neighbors or not so friendly neighbors houses that live within one mile of your house, have the same number of bedrooms, baths, year built, size, or come pretty darn close to it and have sold in the past three to six months. Your neighbor’s houses that we are comparing yours to must have been in tip top shape, HGTV, ready condition or turnkey, which means that it’s completely ready for a new family to call it home sweet home. We then use the area data to find the average of what your house will sell for.After we’ve done the work or wave our magic wand to beautify it. This is the most important number, and is the foundation and preparing your cash offer, so it’s important we get it right. The name for that number is the After Repair Value. For example, let’s say our magic number or After Repair Value equals $200,000, now the math begins. We will then do some subtracting. Our repair cost. These include our inspectors, contractors, permits, materials, et cetera. Our holding cost. These are the lights, water, insurance, taxes, et cetera, while fixing the property and until it has been sold. Note, as we know it can take up to three to 12 months for a house to sell based on the location on the open market.Our realtor’s commission, we pay a local real estate agent at closing for listing the newly renovated property and bringing a buyer. Our closing costs. Once we have a buyer, we must pay our own closing fees. Our profit as a company. We are a business and do need to make a profit. Otherwise, we won’t be able to continue to offer our services. $200,000 after repair value, $35,000 repairs, $12,000 realtors commission, $6,000 closing costs $2,400 holding costs, $30,000 average profit. $114,600 is our offer to you. Now you have an idea of how we calculate our offers. Keep in mind that the numbers above varies from house to house and serves as an example. For instance, not all houses need $35,000 in repairs. So fill out the form at www.WeOfferCashForHouse.com or give us a call at 954-678-6766, we would love to give you our best offer today. Share Tweet Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Sum of 1 + 9 * Δ