Cash home buyers evaluate your property using a combination of factors to determine a fair cash offer. Here’s what the process typically looks like. We first start by determining the ARV, which stands for After Repair Value. This is what your home would be worth if it was in that HGTV type of condition, if you know what I mean. We look at the recent sales of comparable homes in the last ninety days, looking at things like size, location, and features. This gives us a good baseline for what your home would be worth once it’s all fixed up. The second thing that we do is we assess the current condition of your property, looking at structural items like roofing, plumbing, foundation, to cosmetic updates like painting and flooring. We then subtract these estimated repair costs from the ARV, since we’re going to have to do these repairs in order to achieve that after-repair price point. The third thing that we do is we calculate our transaction costs, which include, but are not limited to, uh, closing costs, taxes, insurance, to even any potential carrying costs while the property is being held and renovated. We factor in these costs to ensure that the investment continues to remain profitable. The fourth thing that we do is we calculate our profit margin. Here in Southern California, on average, it’s about thirty percent, but that can vary depending on the location, the amount of work that is required, or the amount of risk that is being assumed. If a property has a lot of work, you know, like structural issues or more risk because of a squatter, investors typically like to see a bigger return on their investment if they’re doing more work- if they’re doing more work or assuming more risk. Once we have all this information, the formula that we then use to calculate our maximum offer price is we take the ARV, we subtract our estimated repair costs, and then we multiply that by our profit margin. So if we’re using thirty percent, then we would multiply that by point seven zero. So that gives us our maximum offer price. Unlike traditional home buyers, we buy properties as is, and in most cases, we can even offer a five thousand dollar, if not ten thousand dollar, non-refundable deposit. Now, if you have any questions about how this process works, give me a call. My name is Eddy from Ready Eddy Cash Offer.