Bay Area Cash Offers © 2024 All rights reserved
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Don’t Fall For That!
I’ll show you the honest and most truthful way of how we do business, for you and your family.
So, now that we know the Market value of your home if we fixed it up (in this case $600k), and we know the cost of the repairs/upgrades. We can now make an offer that works for us. If this offer also works for you, we close and you get your money at closing! We make our offers based on the market numbers, and find it ethically appalling to make an offer based on how desperate you may or may not be able to sell.
After Repair Value (ARV): This is what the market value of your house will be AFTER we buy and renovate the house.
Cost Of Repairs (COR): This is what our cost will be fixing/updating the house AFTER we purchase it from you.
Our Selling Costs: Although we buy houses without involving agents, we on the other hand, have to use an agent to sell that house again AFTER we have purchased it from you and fixed it up. So we have to pay agent fees, closing costs, taxes, holding costs etc. These are all the fees you do NOT have to pay, if you sell your house directly to us! This is usually 10% all together of selling price. (Our Selling Cost = 10% x ARV)
Our Minimum Profit: We keep this to an absolute minimum so we can present you with the highest possible offer. See, our business model is structured around making many deals with a little profit per deal, and not a few deals with a huge profit per deal. This benefits all.
Now you can understand that in order for us to also be able to sell your house (well, our house after we buy it from you) for $600,000, we need to bring your house to the same condition as the house of your neighbor, or better, so that we can also sell it for $600,000.
We would not be able to sell this house in its current state for $600,000 when all the other houses that are currently for sale in your area look as gorgeous as your neighbor’s. Look at it from the viewpoint of a potential homebuyer, would someone be interested in buying a home that is in lesser condition for $600,000 when a much nicer home sells for the same price? It would make no sense to do so.
After speaking with them, you call us and I pick up the phone. My team and I would schedule a meeting with you. We will arrive and I will have my contractor and if I can, my agent with me. I bring our contractor and our agent to the walkthrough, so that our agent tells our contractor what needs to be fixed (as he/she knows what buyers are currently looking for) and what does not need to be fixed (to save on the cost of repairs).
Our agent tells us that we need granite countertops, hardwood flooring, and new roofing, because the neighbor across the street sold their home for $600,000 – also had granite, hardwood floors and new roofing.
Meanwhile, our contractor gives us an accurate estimate of the Cost of Repairs. We will know what needs to be upgraded with the walk-through, and after we know exactly what all the numbers look like, we will have already finished selling the home in our minds.
As-Is Value = $470K
ARV (After Repair Value) = $600K
COR (Cost Of Repairs) = $80K
Our Selling Cost = 10% x $600K = $60K
Let’s say Our Minimum Profit For This Purchase = $40K
[Your Offer] = [ARV] – [COR] – [Our Selling Costs] – [Our Minimum Profit]
Your Offer = $600K – $80K – $60K – $40K = $420K
Your Offer = $420K
Seeing how the house is worth $470,000 as is, which means that if you listed it with an agent, you could potentially sell it for $470,000. We all know deals are made and you may or may not have to negotiate, but this takes a lot of time and comes with a lot of headache. Let’s say you sell it full price for $470,000. Great! However, your agent may take fees up to 6%! We haven’t even mentioned the closing costs yet! This leaves you with (hopefully) $432,000. Also, keep in mind on how long your home is going to be on the market for. Three, maybe even six months? There is no guarantee that it will be sold quickly or even within a year.
So now you have to make a decision.
Sell it for a guaranteed sale for $420K in as little as 10-20 days, or a “maybe sale” for $432K hopefully within 4 to 5 months.
As-Is Value = $470K
ARV (After Repair Value) = $600K
COR (Cost Of Repairs) = $80K
Our Selling Cost = 10% x $600K = $60K
Let’s say Our Minimum Profit For This Purchase = $40K
[Your Offer] = [ARV] – [COR] – [Our Selling Costs] – [Our Minimum Profit]
Your Offer = $600K – $80K – $60K – $40K = $420K
Your Offer = $420K
We buy houses in any condition. No realtors, no fees, no repairs, no cleaning.
Find out how much we can offer you for your house!
I know that a lot of companies say this, but we have and will do better. My team and I will show you and your family why we are the best and why our offers are so amazing. The reason being is, we make our offers based on the value of your home in its best condition. Completely fixed and updated. Then we factor in the cost of what it would take to fix or update your home.
If we can keep the costs of repairs down, we can give you even more cash for your Bay Area Home, as we previously explained above.
My team and I try to do as much work ourselves so we do not have to pay an expensive contractor to do everything. Obviously, it may get a little hectic due to the fact that we buy a lot of houses at a time, but we genuinely try to keep contractor numbers as low as possible so we can get you your highest return for your home, in cash – here in the Bay Area.
Now you’re probably wondering, Why do we give you the highest possible offer? As I have said before, there is nothing wrong with competition, but if we can give you more than what our competitors can, you will sell to us – which is what we want. The more houses we can sell – the faster we can help others.
Selling your house by yourself is very doable. It takes a lot of work and research but it is absolutely doable.
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