Have you ever wondered how a cash offer for home is determined? Actually, it’s one of the most popular questions we get asked!
While every situation we encounter has a unique set of circumstances and every home is in varying conditions, there are some basic practices that go into play. We can’t cover every scenario in this article, but here’s the most common way that we determine a cash offer for home.
Market Value to Determine Cash Offer for Home
As you’ve heard us mention before, the cash offer for home is based on fair market value. We’ll start with looking at comparable sales in your area to determine the value. That means, we find homes that are of comparable condition, size and age.
Unlike using a realtor, we will take the additional fees into account. These are fees that occur during your normal MLS sale and then we subtract that from the predetermined value. This deduction will include the commission a seller pays, closing costs and the concessions to a buyer. These concessions could be in the form of repairs or home inspection costs.
After all these costs are brought to the table, we reach our bottom line, cash offer value.
When Repairs are Involved
With this value in mind, it is time for us to look at the condition of the home and property. All repairs that are necessary will need to be taken into account. While we don’t expect you to do a thing when it comes to repairs, we do have to factor in our costs to make the necessary upgrades.
When you sell your home through a realtor, the buyer has the liberty to ask the seller to make repairs before purchase. We think that is a hassle and could consume a lot of your time or money. Instead, we give you fair market value for your home minus the cost of repairs. Then, we handle all the improvements ourselves.
Don’t worry if your house isn’t in great condition. We restore many homes that need a complete overhaul before being sold. Even if it is a broken window or just a loose doorknob; we’ve got you covered.
Investment
Let’s be honest. For us to offer this service, it must be worthwhile to us as well. After looking at fair market value and taking into consideration the repairs, then we will go through investment underwriting.
This might include us renting the property or flipping it all together. What might surprise you is that most times our investment underwriting is usually in line with fair market value. That’s why we can advertise that we make offers in line with the fair market value of your property.
You can trust that Integrity Homebuyers isn’t in the business to make a quick buck. We are serving the Maryland and Washington, D.C. area because this is our home and we care about our community and our neighbors.
Final Considerations
When all is said and done, there are a few more things that could affect the cash offer. If there are circumstances that we need to make accommodation for, this could change the pricing. For example, if a seller has a need to stay in their home after closing for a few weeks, this could change the price. In addition, if the seller needs to close quickly, that could change the pricing as well.
It’s hard to give examples of every circumstance that might occur, but it’s important to note that we work hard to accommodate all wishes. In a traditional sale process, you won’t find many people that are willing to work around the needs as we will. That’s why we talk to our sellers to ensure that we know what your desires are upfront.
In Closing
Now you understand that our cash offers are based first on market comparisons. Then, we look at the condition of the home, evaluate our investment potential and address all of your needs.
The next thing people tend to ask is “What’s the Catch?”
The truth is that the process is that simple. We’ll come to you, discuss all the above circumstances and give you our best cash offer. We promise it to be quick and easy. In fact, we often have the offer ready for you within 24 hours.
Just look at some of our previous customer’s experiences to tell you how we operate.
The only thing left to do is give us a call at (800) 818-4145 or fill our simple online form. Get a cash offer on your home today!
We Buy Houses in Maryland and Washington DC
