If you are thinking about selling your home, hassle-free, to a home buying company you might be wondering how they will calculate their offer price. Of course, they are looking for good deals on homes that they can fix up and make a profit on, but how do they come up with the figure? The process is actually quite simple.
They Do Market Research
If you were to hire a real estate agent and list your home the conventional way, the first thing your agent would do is market research on the home to determine a fair asking price. Home buying companies do the same thing. Real estate market research looks at square footage, how much similar homes are going for in your area, what amenities are nearby, and location to determine a baseline value.
They Take a Quick Tour of the Property
Once the home buying company has a baseline value on your home, they will take a quick tour of the property to assess the condition. They are looking for any repairs and upgrades that are needed in order to successfully sell the home at a profit. They will also take note of any additional labor that will be needed, such as yard work, landscaping, deep cleaning, and emptying out the house.
They Make Their Calculation
The baseline value and condition of the home are all that a home buying company needs to calculate an offer price. They will simply subtract the value they give to you, such as taking care of repairs, cleaning, clearing the house, and saving you the hassle of a conventional sale, from the baseline value. The hopes are that this offer will be a win-win for both parties; that the value you get from a no-hassle sale will be worth the reduced price.
Once you have the offer in hand it is completely up to you to decide what to do with it. You are free to accept or reject the offer. You are under absolutely no obligation to sell. Just remember, when you are comparing a sale to a home buying company to a conventional sale you are comparing apples and oranges. The offer price might be reduced, but that money is more than made up for in other ways.
Ready to sell your home in the Bakersfield area? Learn more about Prime Buyers and how the stress-free process works by clicking here.