CASH OFFER

CASH OFFER: a calculated number that signifies a reasonable price an investor would pay (in cash) for a home. It is NOT a purchase agreement from Saving Sellers Property Solutions (SSPS).

How is a CASH OFFER calculated?

• Research of Comparable Homes: The investor researches comparable home sales in the Homeowner’s neighborhood and surrounding areas (on Connected Investors Software, Zillow, Trulia, Redfin, Propstream, the local MLS and other sites). From the extensive research, the investor can determine (with an average of all the collected data) what a typical home (with similar square footage, number of beds/baths, acreage, electrical and sewer options) would be selling for in the current market. 

• Research of Public Records: The investor researches the Homeowner’s home purchase price, debt-to-equity spread,  property improvements, age of home and highlighted property features found on public records (i.e., County Assessor Reports). If the home was built before the 1970’s, the investor will add possible asbestos and lead paint issues and costs into the calculations.

• Walkthrough: The investor makes a preliminary review of the home—typically a 15-30 minute walkthrough. The walkthrough is a quick “eye-ball evaluation”, which is a review of what can be seen, without checking the foundation, the roof, rotting wood & termites, plumbing or electrical elements. During the short walkthrough, the investor will take videos and pictures, so he/she can review the photos and footage later that day, ensuring all seeable repairs and needed updates are included in the report. This preliminary walkthrough CAN be done by the Homeowner. Photos and short video clips (from the Homeowner) must be sent to our company email address: Julie.Moore@SavingSellersPropertySolutions.com. 

A word of caution to Homeowners who try to “HIDE” known issues during a walkthrough…if your preliminary repair evaluation excludes major issues with your home, those issues WILL be found during the DUE DILIGENCE period, when a professional Inspector and Appraiser will evaluate all the other important home details (the foundation, the roof, rotting wood & termites, all plumbing and electrical elements, etc). It’s in a Homeowner’s best interest to be upfront and candid with all the home’s needed repairs.

If the investor or the Homeowner are unable to do a walkthrough within the first calendar week, the investor will do their best to make a rough estimation. 

An investor uses a formula for rough estimations as well: 

• For homes costing $50K-$150K, $20 x Total Square Footage
• For homes costing $151K-$250K, $30 x Total Square Footage
• For home costing $251K-$350K $40 x Total Square Footage
• For homes costing $350K+, $50 x Total Square Footage

• Repair Report: After the walkthrough is complete, the investor then compiles a preliminary repair report. The report will give an estimation of the cost of repairs, including the cost of the material and labor necessary to complete the given repairs.

• Final Calculations: The inspector then gathers all the many details and runs a calculation with this formula: 65-70% ARV (After Repair Value) minus total Repair Costs. The final number (or resulting calculation) is what the investor believes the Homeowner could sell their home for—to an investor who offers a fast, CASH CLOSING.

• CASH OFFER: Our investor contacts the Homeowner and gives them the calculated number. This number not an official purchase price from our company. It is the preliminary calculation—before inspection and appraisal time (DUE DILIGENCE, which is explained in detail on our HOME webpage: www.savingsellerspropertysolutions.com and can be downloaded for your immediate reviewal).

Important to note, you can see that a CASH OFFER would take an investor many hours to prepare! Our company offers a FREE, NO OBLIGATION CASH OFFER! With a CASH OFFER in hand, you (the Homeowner) have the ability to gather all other information and determine if, how and when you want to sell your home.