Cash home buying companies are famous for making a cash offer on your home within 24 hours. They don’t do home inspections or appraisals, and they may not even see your home in person. Cash home buyers use the same basic factors to place a value on your home that traditional real estate agents do: size, location, and condition.
Generally speaking, the size of your home is a major influence on its asking price. Size includes the square footage plus the number of bedrooms and bathrooms. However, the size is considered within the context of the type of home and similar surrounding homes.
The age of your home, the floor plan, and other features such as a garage or basement will all affect the estimated value. Older homes with lower ceilings, smaller bedrooms, and tiny bathrooms may be valued less than more modern homes of the same size.
Your home will be compared to other homes in your neighborhood and other places. A home in a desirable area, close to good schools, healthcare, and convenient shopping, may be considered more valuable.
On the other hand, a house located in a deteriorating area with a high-crime rate may be priced lower. The specific location of your home is also a factor. If it’s located near a hazard or noise, those will be marks against it.
Finally, cash home buying companies will consider the condition of your home. Although they purchase homes “as is” and never ask you to make repairs, they do consider their costs in fixing up the home. Most buy homes with the intention to rehab them and then resell.
Home buying companies are property investors, and they expect to make a profit. Serious defects in your home that could cost thousands of dollars to repair will cut into their profits. That said, the offer they make could be quite comparable to what you would get by trying to sell it on the market.
Selling to a cash home buying company is a viable alternative for people who need a quick sale or have a hard-to-sell house. If you are interested, ask them direct questions about how they came up with the amount of their offer. They will be happy to tell you.
Do you have a home to sell in Indianapolis or the surrounding areas? Learn about the cash sale process by clicking here!