How do you guys calculate the offer you’re going to make me?
Our offers are based primarily on the four factors below:
The first factor is the “After Repair Value” or ARV of your home. ARV is the estimated market value of your home after any necessary repairs or renovations have been made. To calculate the “ARV” of your home we take into consideration the location, condition of the property, recent comparable sales in the area, and more when determining the ARV of your home.
The second factor we base our offers on is the total cost of renovations needed or “COR”. COR takes into account any necessary repairs or updates that need to be made in order for your home to reach its full market potential.
The third factor we take into consideration is our selling costs. In most cases, our selling costs usually equal about 10% of the final sale price to the end buyer. This includes any realtor fees, marketing expenses, and any other miscellaneous costs associated with selling your home.
Minimum Profit Margin:
Finally, our fourth and last factor is the minimum profit we aim to make within every transaction which is 10% of the ARV. This ensures that we have enough room in our offer to cover all of our costs and still make a reasonable profit.
Keep in mind that these are just the main factors we consider when making an offer on your home. We understand that everyone’s situation is different and we’ll work with you to get you the best possible price for your home.