Most Hampton Roads We Buy Houses for Cash companies apply the 70% rule, meaning they’ll offer you about 70% of your home’s after-repair value (ARV) minus their estimated repair costs.
Here’s an example of what a simplified formula might look like:
(Your home’s ARV x .70) – repair costs
Let’s look at an example offer equation to see how this might work in a real-world scenario. Let’s say your Hampton Roads Bungalow could sell for $340,000 after repairs, but it will need $25,000 of work to get there.
($340,000 x .70) – $25,000 = $213,000
In this example, a Hampton Roads We Buy Houses company might offer you about $213,000 for your home.
However, different types of house-buying companies will offer varying amounts for homes. As mentioned previously, iBuyers tend to pay more than We Buy Houses companies because they look for homes in better condition. An iBuyer might pay you 90% or more of the market value while charging a fee for their services.
