Most Columbia, TN “We Buy Houses” corporations apply the 70% rule, that means they’ll give you about 70% of your house’s after-repair worth (ARV) minus their estimated restore prices.
Right here’s an instance of what a simplified formulation may seem like:
(Your property’s ARV x .70) – restore prices
To see how this may work in a real-world situation, let’s check out an instance provide equation. Let’s say your traditional-style residence in Columbia, TN, may promote for $410,000 after repairs, however it is going to want $25,000 of labor to get there.
($410,000 x .70) – $25,000 = $262,000
On this instance, a Columbia, TN “We Buy Houses” firm may give you round $262,000 in your residence.
Nevertheless, various kinds of house-buying corporations will provide various quantities for properties. As talked about beforehand, iBuyers are likely to pay greater than We Purchase Homes corporations as a result of they search for properties in higher situation. An iBuyer may pay you 90% or extra of the market worth whereas charging a charge for his or her providers.
