Have you ever wondered how cash home buying companies come up with a number when making an offer for your home? Given that the offer from a cash home buying company in a fast cash sale may not quite match up with what you might expect from a traditional sale (if you put your home up for sale on the open market), it’s a fair question. As it turns out, there are a few factors that influence the value of your home in a fast cash sale.
Location is a big deal in real estate. Not every location is going to be a good fit for every person, but just about any location will be good for someone. That said, location will factor heavily into your home’s perceived value. If it’s located in a good school district and close to a variety of businesses and amenities, its relative value will likely be high. The same goes for a property in a prime area of a bustling, successful, safe city.
The condition your home is in will also have a huge impact on its value. This is a given regardless of the nature of the sale, but it’s especially important in a fast cash sale. The fastest cash sales are often done with professional home buying companies. These buyers are interested in properties as an investment. They take responsibility for repairs after the sale is complete. The cost of such repairs is factored into the home’s perceived value and the cash offer that the company extends.
Value of Similar Recently Sold Homes Nearby
Not all real estate markets are the same. Because real estate can be priced higher or lower in different areas, the value of similar homes nearby is something that will be used to judge the overall value of your home. This sort of comparison helps both the buyer and the seller. It helps the buyer avoid overvaluing the property and helps the seller avoid lowball offers.
At the end of the day, a house is only worth what someone is willing to pay for it. That can make offers seem rather arbitrary; but, the truth is that your home’s value will be calculated quite carefully. The home’s location and condition, along with the value of similar homes nearby that have been sold recently, all factor into the final cash offer. In the case of a home buying company, they’ll also consider their profit margins and the cost of any repairs that are needed. As it turns out, it’s not so arbitrary after all.
Do you have other questions about selling your home to WNY Home Buyers? Click here to find the answers to some of the most frequently asked questions.