How we calculate your offer
How we come up with the number
We are a buyer. We make our money when we resell the house, and we would rather show you how the number works than ask you to trust us. Here is every step of it.
What we actually do
1
We look at what a fixed-up house on your street sells for
Recent sales, same neighborhood, similar size.
2
We walk the house, in person or on video
We add up what it needs. Roof, systems, kitchen, anything structural.
3
We subtract the work, our selling costs, and our margin
We tell you what that margin is. Every buyer has one. Most will not say the number out loud.
4
You get the offer in writing
No commission, no closing costs, no fees. If listing it would net you more, we will tell you that instead.
The four numbers
Number 1
After-repair value (ARV)
What your home would sell for, fully repaired, based on recent comparable sales.
Number 2
Estimated repair cost
What it actually costs to bring the home to that fully-repaired condition.
Number 3
Our selling costs
Agent commission, closing costs, and holding costs while we own and resell it. About 7% of ARV.
Number 4
Our margin
What we need to make on the resale for the repair, the risk, and the time, so we can keep buying homes.
Worked example
Example only, to show the method. Not a quote for any specific property.
| Line item | Amount |
|---|---|
| After-repair value (ARV) | $850,000 |
| Estimated repair cost | -$90,000 |
| Our selling costs | -$59,500 |
| Our margin | -$60,000 |
| Your offer | $640,500 |
$850,000 minus $90,000 minus $59,500 minus $60,000 equals $640,500. Change any of the four numbers and the offer changes with it, which is the point: you can check our work.
Want your actual numbers?
We will walk your property through this same math with you on the phone, line by line.
Get your number