We Buy Houses Austin
We Buy Houses Austin
Have you ever found yourself asking “who are these we buy houses Austin” folks and how does their process work? If you are looking to sell your home fast in Austin we might be able to help you. Whatever your situation may be, we will buy your house cash – regardless of the condition of the home. We always make a fair cash offer on the property that takes into account any repairs needed.
How It Works
It all starts with the homeowner contacting us and setting up an appointment for us to view the home and make an assessment. Homeowners can contact us at 512-256-4185 or online at www.AmplifyHomes.com/cash-offer-austin.
Once the appointment has been set up, we will come to your home to inspect it and make an assessment. At the end of the appointment we will provide you with an all cash offer. It’s that simple!
How We Calculate Our Offers
If you have ever wondered how the We Buy Houses Austin folks calculate their offers you’re in for a treat. We are about to spill the beans and give you a sneak peek into every investor’s methodology. The first step in calculating a cash offer is to determine the ARV (after repair value) for the property. The ARV is the amount the property will be worth and sell quickly for after making fixes and renovations. Once the ARV has been determined, the next step is to determine the repairs necessary to get the home to that ARV condition. Once those 2 numbers (ARV and repairs) have been calculated we then plug them in to the following formula:
Maximum Allowable Offer = (70% * ARV) – Repair Costs
The above calculation is an industry standard and is used by ALL we buy houses austin investors. You might ask “how did you come up with that calculation”? Well, that’s an excellent question. When we buy houses in Austin, we intend to renovate the property and sell it for full price on the MLS. The costs associated with the renovations, and placing the home on the market are 2 important costs that impact our maximum allowable offer. On average we spend roughly 15% in fees and costs associated with buying and selling a home. These are things like closing costs, title insurance, property insurance, utilities, and realtor fees and commissions. All of these things quickly add up to roughly 15% of the purchase price. So when it’s all said and done and the property has been sold, we expect to make a 15% return on our investment. For example:
Let’s say that the after repair value for a home is $100,000. And let’s say it needs $10,000 in repairs. The formula for our offer is:
Offer = (0.7*ARV) – repairs
Offer = $70,000 – $10,000
Offer = $60,000
In the example above, we would be able to make the homeowner an all cash offer of $60,000. With that offer, we would expect to make a profit of $15,000 or 15% of the purchase price. Here is the breakdown:
Purchase Price = $60,000
Repairs = $10,000
Fees to buy and sell home = $15,000
Total spent = $85,000
When we sell the home for $100,000, after all expenses amounting to $85,000, we would make a profit of $15,000.
The Benefits of We Buy Houses Austin
You might be asking yourself “is it worth it” ? And the answer to that is sometimes it is, depending on a homeowner’s current situation. We believe in always being honest and straightforward with our customers, and we would be lying if we told you that you couldn’t sell your home for more with a realtor. You almost always will receive more money for your property if you list it with a Realtor. So why would anyone sell their home to We Buy Houses Austin if they could get more money with a Realtor?
Again, it really depends on the homeowner’s situation. The drawback to listing it with a Realtor is that you don’t have any assurance that your house will sell in 3 days, 7 days, 3 weeks, or even 3 months. A Realtor can’t promise “We’ll be at the closing table in 2 weeks”. With us, we can buy your house cash in just a matter of days. Some homeowners like the convenience and peace of mind of being able to sell quickly for cash guaranteed.
Another advantage of selling to us is that we buy houses in as is condition. This is because we have already factored in the repair costs into our offer. When listing with a Realtor you would have 2 options: first, you could spend money out of pocket to make the repairs OR second, you could attempt to sell your home as is. For some owners neither option is appealing to them. In the first option they have to spend money out of pocket for repairs, and in the latter option the house most likely would struggle to sell on the market. When prospective buyers come and look at a home, the condition of the house will make a huge negative impact on them. Again it really depends on the owner’s needs and what their situation calls for.
Hopefully this has helped you understand how our process works and what your options are. Whether you’re looking to sell your unwanted rental home, want quick cash for your home, or just want an assessment on your home contact us today! If you just have a question and would like to chat feel free to give us a call at 512-256-4185 or send us an email at support@AmplifyHomes.com
-Amplify Homes Team