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How to Get Your All Cash Offer?
At B&L Freedom Homes, we offer a 3-step process to sell your home. We’ll send you an all-cash offer within 24 hours.
Before we can send you an offer, we need necessary details about the property such as its condition, year of construction, and location. We’ll then perform a comparable market analysis then calculate the cost of repairs and improvements. Finally, we can give you a cash price for your home.
How Do We Buy Houses for Cash?
Houston is full of home buying companies and they all claim to give you a “fair” cash offer. You’ll get their offer within 24 hours, most times with the firm not ever visiting your property. However, we have come to find these firms offers aren’t always as accurate as they claim, and they are typically significantly below your bottom line number.
But then, you ask, how do you make me an offer?
We’re happy that you asked that question and we’ll be glad to answer it for you.
Our company has a specific process in place that aids us in making offers.
We Calculate the Market Value of the House
The market value of a home is determined by its:
Let’s suppose, there’s another home in the community that has the same square footage, bedrooms, and baths as your property, however, this home is in great shape. The owner just completed a renovation by adding granite countertops, a fresh coat of paint and new appliances. The price of this property is $250,000.
Now we do dig further into details but for the time being, let’s assume that the market value of your home will be $250,000 as well if we make the necessary repairs and renovate the house.
The After-Repair Value of your home is $250,000.
Now we know the ARV of your home. We can subtract the cost of repairs, renovations, marketing, and holding expenses. After this we can make you an offer.
Our Offers are Based on Your Home and Not on Your Situation
We try to help you out if you’re going through a difficult situation. However, our offers are genuine and aren’t based on how desperate you are. We’ll do our best to give you a high price offer no matter what’s the situation. We aren’t here to take benefit of your situation.
How do we calculate the offer?
ARV: The after-repair value of the house is $250,000.
We need to install a new roof and deck, update the kitchen and bath, reconfigure the layout of the house for a more open layout, and lastly complete minor fixes such as painting. We’ll also check the structural integrity of the home, the electric panel, and the plumbing structure. After consulting our agent, we’ll create a completed list of must-have repairs.
Let’s suppose, the cost of repairs is $60,000.
Our business makes money when we sell the house after buying it from you.
We’ll buy your home directly, so you won’t be paying any realtor commissions. However, we list our homes with an agent and need to pay the commissions on our end. Because we are investors, we’ll also pay for marketing and other expenses such as:
We spend around 10% of the ARV on selling expenses. That means, for our example, the selling expenses are $25,000.
Our Minimum Profit:
We need to make money to stay in business. Our business won’t exist if we can’t generate the minimum profit. We have a team that works with us, and everyone needs to make a certain amount of money to survive. We need to pay our contractors, plumbers, networking professionals, marketers, and assistants. It’s a business, and like any other business, we want to make a profit, but we aim to keep the profit margin to a minimum. Unlike other companies, we would like to renovate various properties each year and earn a minimum amount from each deal.
So, what’s the best price offer for my property?
Let’s suppose; the minimum profit amount is $35,000. Let’s do the calculations.
ARV-Cost of repairs-Selling Expenses-Profit = $130,000.
$130,000 is what we would offer to purchase your home in as-is conditions. This price might seem lower than what you would get in the retail market. Let’s suppose you contact an agent, and he says the market price of your home in its current condition is $155,000.
Subtract the closing costs (6% realtor commissions, insurance, inspections, etc.). Sellers generally pay 8%-10% in closing costs.
After paying the closing costs, you’ll make $141,800. With us, you’re making $130,000.
You’ll need to wait a few months before closing on your property. Sometimes, you can’t sell your house as-is, and you’ll need to spend money on repairs and renovations.
What if Repairs Cost Less than $60,000?
Let’s say, the cost of repairing your home is $30,000. In that case, we will happily offer you $160,000 where the price of your home is $155,000. It doesn’t happen often, but we have come across cases where the market price of the property is less than what we’ll pay. We suggest you give us a call. Let’s us run the numbers and we’ll send you the no-obligation quote. If it suits you, we can purchase your house as-is for a cash price within days.
Now you have a choice to make. You can either get a guaranteed cash offer on your property and sell it for $130,000 or you can list with an agent and wait for your home to sell in next 3 or 4 months.
We are ready to buy your home!
Click here if you want to get a cash price for your property.
"You bought our house without hassle and even paid cash and bought it as-is! I could not be happier and have even recommended you to a friend."D. Johnston