How Do Cash Home Buying Companies Calculate Their Offer?

You may have heard the promise that cash home buying companies will make you a fair offer on your home. But what does “fair” mean, and where do they come up with the amount? With reputable cash home buying companies, you can rest assured that the calculations made will never be arbitrary. They are based on extensive market research, your home’s location, and, of course, the condition of your home.

When you sell your home the conventional way, your realtor will perform market research based on surrounding homes in your area that have recently sold. They look at the number of bedrooms, square footage, and amenities and use those to determine a baseline figure for your home. This amount will change in a matter of months, depending on the current market. Home buying companies do the same thing to get a baseline value on your home.

Once the home buying company has reached a baseline figure on the worth of your home, they look a little deeper into location. With real estate, location is everything. A home in Redmont Park will be worth more than one that is the same size in Bessemer. The precise location matters too. If your property is located near greenways, parks, and schools, the value will be much higher than if it is located next to a railroad, industrial buildings, or major highways. 

The last consideration when determining your home’s value is its condition. Obviously, a home that needs major work done will lose value compared to a home in mint condition. Your home buying company will do a quick assessment of what repairs, remodels, and updates will need to be done, estimate the costs of those repairs, and subtract them from the value of your home. 

Of course, your home buying company will need to buy your home at a discounted price to stay in business. However, the price difference is made up for in many important ways. You don’t have to worry about making any repairs, you can be out in just a couple of weeks or even days, and you won’t pay a penny in realtor commissions or closing costs. All of that adds up, big time. 

Are you ready to find out for yourself what our “fair cash offer” can mean for you? Click here to learn more about BUYBHM and to get your no-obligation cash offer. It never hurts to learn more and compare your options!