By admin1
Most 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), and 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
Now let’s take a look at a practical example: Let’s say your Houston Craftsman could sell for $330,000 after repairs, but it’s going to need $40,000 of work to get there.
($330,000 x .70) – $40,000 = $191,000
In this example, a Texas cash-for-homes company will probably offer you about $191,000 for your property.
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.
