If you are looking into selling your home for fast cash to a home buying company, you might have a few questions. Foremost in your mind is probably a question of how these companies calculate their offer. Do they just come up with an arbitrary figure and throw it out there in the hopes that someone will bite? Of course not! Here’s how they do it:
Home buying companies start configuring their offer price the exact same way that realtors work out their suggested asking price–with market analysis. Market analysis pulls information from public records and MLS to run what is referred to as comps. These are comparisons of similar properties in the same area that have recently sold. They use the amount they were sold for, the square footage, the lot size, the year built, the location, and the amenities to compare these homes with yours and configure a reasonable baseline value.
Assess the Condition
Of course, the baseline value is only part of the picture. The condition of the home can raise or lower the value. Until the home buying company can assess the condition, they can’t get an exact idea of how much the house is worth. For this reason, the home buying company will set an appointment with you for a quick tour of the property. Needed repairs, updates, and remodels will be assessed, along with the estimated costs of all of the work that needs done.
Combine the Two
Once the home buying company has a baseline value and an estimation of the work to be done, they can simply combine the two to calculate their offer. The cost of repairs and remodels will be subtracted from the baseline value of the home. This means that you will be selling your home for a discounted price, but that is only because the home buying company is covering costs that you would have had to cover otherwise.
Now that you know how home buying companies calculate their offer price, you might be wondering if it is worth selling your home at a reduced price. For many people, the answer to that question is a resounding yes! You don’t have to worry about repairs or updates, you get to skip the hassle of a conventional sale, you don’t pay a penny in commissions or closing costs, and you can be out in a matter of days.
If you think you are ready to sell your home for fast cash, reach out to Forrest Buys Houses. You can learn more by clicking here!