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We will schedule an appointment and make a fair, all cash offer
If you like it, we will schedule a closing date of your choice
Why Are We Buying Your House?
We are home flippers. “So you’re going to low-ball me and try to make a ridiculous profit?” Absolutely not! Others might do that, but our business doesn’t operate that way.
We buy based on market numbers rather than trying to take advantage of people. It goes against what our company stands for to do business like that. In other words, our success depends on giving you an offer that works for both of us.
The better our offers are, the more houses we buy.
The more houses we buy, the lower our costs get.
The more we lower costs, the better our offer are.
How Do We Calculate Our offers?
This is the exact formula we use.
- After Repair Value (ARV) is what the home is worth after we repair/update it based on others sold in the area. I’ll show you what I mean below.
- Repair Costs are what it’s going to cost us to get your home to that ARV value.
- Selling Costs are typically around 10% of ARV in total. These include realtor fees, title fees, taxes, holding costs, etc AFTER we buy it from you and sell it later. You do not have to pay these fees when you sell directly to us. However, we can’t avoid them when we sell it later.
- Minimum Profit because we do have to make a profit to stay in business. Our business is built around doing many deals for a smaller profit rather than fewer deals at massive profits. We use the word “ ” intentionally because it’s best for both of us to do it that way.
OK, Let’s Use A Real Example
Imagine this is your home. Pretty nice kitchen, nothing wrong with it. It has granite countertops, lots of cabinet space, and everything works as expected
Now let’s look around at what has sold recently in the neighborhood.
Here are two others with the exact same floor plan that sold we can reference
Now we know what it’s worth if it looked similar to these. There is more to consider than just the kitchen to get the market value, but we’ll keep it simple for this example.
Let’s use the ARV of $336,000. To make your house look similar to these (kitchen and other areas) we would have a Repair Cost of $42,000, and let’s say for this home our Minimum Profit is $20,000.
We have everything we need for our offer formula above. It’s pretty simple.
“So if I just do it myself, will you give me more money for it?”
Yes, in theory, but I would caution against it. Depending on what you do you might not get the return on your money you’re thinking you will. Here’s why:
What if that repair cost of $42,000 costs you $58,000 on your own? What if it takes another 6 months and you spent money on things that didn’t actually increase the value of your home? In our experience, people who have tried to do it all by themselves often put a lot of time and money into a house and came out no better than if we bought it from them to begin with. In fact, most homeowners lose money doing this.
Since we do this a lot, we only use licensed contractors we know will keep things moving for us and can give us better rates for repeat business. We may even have materials left over from previous projects we can use which we factor into the offer. We also don’t repair or upgrade anything if it doesn’t give us a good ROI.
Realtors are actually a best updates are… if they think you’ll list it with them.resource for help with this. They can guide you on what repairs are needed and what the
We partner with realtors ourselves to keep up with trends, and we let them list it for us when we’re done.
let us do it, or sell it the traditional way with a realtor.
Do we have to rehab every property?
We don’t have to, but it’s rare that we’ll find one that’s in exactly the condition we want to sell it in for the reasons described above. Many properties are already marketable and people just want the convenience of a cash offer without realtors. That’s totally fine and if we don’t need to spend any money we can zero it out.
From the earlier example, here’s how it would look: