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So you own a home that you want to sell quickly but, where do you turn to accomplish this? Property Bridge Solutions is a company that will buy your house fast and get you out of the burden of owning a property you no longer want. First, why do you want to sell your house fast? This answer is something that only you know. It may be a situation that you just want out and you want out quickly. If you have turned to us, we are here to help you and that is what we will do!
In order to sell your house fast you have to find a buyer that is willing to buy your house at a price that is going to be fair to them. A professional home buyer is not going to pay top market value for your house. If they did, they would not be a professional buyer. Instead, they will be buying your house at fair market value. Many people that we have helped are in a house that has some major problems. Those problems could be a hoarder house, a house with foundation issues or other major defects. Maybe it’s a house the owner can no longer afford or it’s a house that was passed down after a loved one has passed away. Whatever the situation, these houses have problems that a professional home buyer can solve and solve it fast!
How do we come up with the offer on your home?
To illustrate how we come up with an offer I will use a property that we purchased from a gentleman who had gone through chapter 13 bankruptcy. His house was a house that could use some updates throughout and the owner was aware of these but just didn’t have the money to get them done. Also, the owner was in a house that was quite large, and his utility bills were burdening him each month which was further causing financial hardship. When we first met, he was skeptical of what we did and how we did it. On our first meeting, after introducing myself and explaining our process of buying homes he felt comfortable enough to show me around and point out some repairs that he knew were present. At the same time, while walking the property with the owner, I too was making notes and identifying repairs/updates that were going to be needed. At the end of my tour of the property, I explained to him what I found, and he agreed with my findings.
Now, I am ready to present my offer to the owner. I showed him several like homes in the area that had recently sold and the price that they sold for. Some of these homes have been updated, while others have not. I gave him a price known as the ARV or after repair value. The ARV is the top price which the home would sell for if it were completely remodeled and updated with no defects. We will say that price was $250,000. Next, all the repairs that I found on my tour of the house were itemized with a price for each one. The cost for the remodel was then subtracted from the ARV and we will say that the remodel cost will be $75,000. Now, we subtract that remodel price from the ARV and we are sitting at $175,000. This number though, is not the offer we are going to make on the property.
With all properties that we buy, we will take 20% off the ARV and in this case that 20% of $250,000 is $50,000. This 20% covers our holding costs which include taxes, insurance, interest payments on loans that we used to buy the house and also pays our realtor their fees (6%-7% or $15,000 roughly) when they go to sell the house. After all of that, our profit is included in that 20%. So, after doing the math here is how that looks:
ARV ($250,000)-Repair Costs ($75,000)-Holding Cost (20% of $250,000=$50,000) = $125,000 (offer price)
The owner saw the offer and was happy with that. He was able to sell his house for a price he felt was fair and was even happier to find out that he was able to get out of his house on the day of his choosing which was in 14 days. He was also happy with the fact that he didn’t have to move items he no longer wanted and only took what he did want to make the moving process very easy.