Should I sell my house to a “we buy a house anywhere” company?

How much do we pay for the company to purchase?

It is a nuanced process to understand how much our home purchase company will offer your home. The final figures may vary greatly based on several factors, including the specific company you work with, the location and condition of the property, and the broader market dynamics.

The core difference between a homebuyer and a traditional buyer is motivation. While the average home buyer may see subjective aspects of value, such as the proximity of a home to amenities or its aesthetic appeal, the company that buys a home is primarily for profit. Therefore, a cash joint venture is expected to bring less money than the open market.

70% of the rules are often cited

Many of our homebuy companies apply for 70% of the rules, meaning they will give you about 70% of the repair value (ARV) after the home, minus their estimated repair costs.

Here is an example of a simplified formula:

(Your ARV x .70) – Repair cost

To see how 70% of the rules work in real-world situations, let’s look at an example providing equations. Suppose your home can be sold for $450,000 after repair, but it will take $30,000 to get there. The calculation looks like this:

($450,000 x .70) – $30,000 = $285,000

In this example, the home company we purchased may offer your home for about $285,000.

70% of the rules do not always apply

Although 70% of the rules are often used as a benchmark that sellers may receive, this is not a consistent standard. The actual numbers may deviate significantly.

Some home slippers may only offer up to 50% of ARV, while some countries can pay up to 85% or more.

Tigranyan highlights the complexity in this calculation. He noted that a wide range of impact variables make setting consistent percentage expectations challenging. “Houses can be sold on one street for $X, and the next street may be sold for different prices,” he explained.

Exaggerated costs of plundering companies

While some homeowners may find good deals with home buying companies, especially if speed and convenience are prioritized over maximum profits, caution is essential. Not all sectors operate ethically. Some predatory companies may try to exploit sellers by exaggerating repair cost estimates or unfairly low prices.

The importance of multiple sources of home value

Tigranyan warns sellers: “Sometimes sellers look at sites like Zillow or Redfin, they might think that this is the value of the property, but it’s not always. It’s just the starting point.

Zillow doesn’t know the condition of your house. This is just a big driver of data. They don’t know you might need to replace the roof. You may need to replace the pipe. Zillow doesn’t know the condition of the house, inside or outside. ”

For sellers who aim to make informed decisions, it is crucial to conduct independent research. You can check a source immediately using Homelight’s Home Value Estimator.

Additionally, comparative market analysis (CMA) with experienced real estate agents can provide valuable expert insights. Many agents offer free CMAs that provide estimated property valuations based on the latest sales of similar homes nearby (called Comps).

»»learn more: How to find a supplement for my house: Illustration guide

How quickly can I sell my home to a homebuyer?

You can sell your home to us based on the company and your specific circumstances at a rate that may vary. However, one of the main selling points of these companies is that they have a much faster ability to complete transactions than traditional sales. Typically, you can expect to sell your home in a few days or weeks compared to the months you are on the open market.

Tigranyan illuminates the topic with extensive experience, emphasizing the flexibility his company offers.

“First of all, we want to understand what time frame the seller needs,” he explained. “Every seller is different. For example, I have one in Baldwin Hill (in Los Angeles County) and they want the hosting to close within 60 days. Most importantly, they ask for another 30 days to move out after 30 days of closure.”

A well-known company will strive to align with seller needs and expectations, including more pressing needs.