We all know that there are companies nowadays willing to make an offer for homes that are in any structural and aesthetic condition. These “We Buy Houses” companies are very smart in making their business grow because they are willing to pay a certain amount for the condition of the home. Of course, they would like the homes to be on the poor state because the fast house sale price is normally below the average compared to well-kept homes that need little renovation. If you are interested on a fast house sale, you have to know how these companies price your property.
Condition of the home
The current state of the house is a very important consideration for We Buy houses companies. They look at the foundation, exterior structures, interior conditions, plumbing, electrical wiring, fixtures, flooring, wood paneling and other items that will be left behind by the homeowner. A home in great condition but has poor design elements can sell at a better price compared to a home that looks nasty and potentially hazardous to people. Thus, do not expect massive amounts of money if your home is demolition worthy. If the house is just in fine condition, the price will definitely be more appealing to sell fast.
Repair and renovation costs
A home that does not need too much structural and superficial repairs will definitely not cost that much for the renovators to fix while a home that has been vandalized and damaged by weather, pests and humans will take a lot more investments before the house can be resold to the market. If your home is on the second category, expect that deductions will be made on the offer to make way to address renovation costs especially if the structure is already showing signs of decay. These companies who buy houses also need to make the right call when it comes to pricing an ugly home.
Time to fix the home
Aside from the actual renovation costs, we buy houses companies are also weighing in the time that will be spent to renovate the house. Is it going to take a few weeks? Months? Years? The time the house is closed for renovation makes it even costlier for them to keep the house so that is a factor on how much they are willing to buy a house. Some homeowners are just interested on making some bucks out of the home for various reasons and so they are willing to make a fast house sale instead of investing a bit more for the repairs and renovations.
Value of renovated home compared to other area houses
Of course, once the house has been renovated, it will be competing with other area homes. How well is it going to sell? The company analyzes the factors involved in selling the home and how much it will be able to compete with and how much profit they will get out of the sale. After repairs and renovations, expect that the value of the house will become a lot better than before but it still has to compete well in the real estate sector.