By admin1
Most Rockford, IL “We Buy Houses” companies apply the 70% rule, meaning they’ll offer you about 70% of your home’s after-repair value (ARV), then deduct their estimated repair costs.
Here’s an example of what a simplified formula might look like:
(Your home’s ARV x .70) – repair costs
To see how this might work in a real-world scenario, let’s take a look at an example offer equation. Let’s say your Rockford Tudor-style house could sell for $180,000 after repairs, but it’s going to need $30,000 of work to get there.
($180,000 x .70) – $30,000 = $96,000
In this example, a Rockford, IL “We Buy Houses” company might offer you around $96,000 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.
