Video Transcription
Brooks: Hey, good afternoon guys. Brooks with YNP Home Solutions. What a beautiful day it is here on this Thursday in the Eastern panhandle of West Virginia located right here in the tri-state area. YNP Home Solutions, we’re your local house buying company here.
Today, we’re going to continue the 10 part series of the top 10 questions that we’re asked on a regular basis when we are talking with homeowners about purchasing their home. Today’s topic is how do you guys prepare or how do you come up with your final price or your offer? There’s no one size fits all for this. I mean, this definitely varies whether we’re going to do cash, terms or some other type of creative deal, but I can tell you exactly how it works when we’re doing a cash offer.
We’re going to look in the area and we’re going to pull some things that have sold close by. We’re going to find out the condition of your property and determine what it’s like with those that have already sold, and then obviously once we’ve seen the property, if your property needs more work than what we had expected, obviously we’re going to lower that offer. It looks something like this.
Your property’s worth $100,000 in fixed up condition and there are some solds around you that are justifying that number. Your property needs, I don’t know, let’s say $15,000 worth of work. We’re at $85,000. We’re going to pull out another 5-10% fudge factor in addition to that 85k less another 10% is about where our cash offers going to be.
Why is it so low you may ask? Well, it’s only low if it doesn’t work for you. Okay. We have to be able to make money. We’re in the business to be able to make a profit on the property. That’s our business. So, that’s why the cash offer tends to be low.
If we do some sort of term structure, meaning your property’s worth that same $100,000. It’s in a nice area. It’s not downtown in a war zone where there’s a lot of whatever’s going on, and we can maybe put a tenant buyer in there, or maybe we can do a rent-to-own, or maybe you’ll own or finance it to us, we can do better. I can get you the price you want for the house. If you want something that’s closer to the hundred, some cases even above, just depends on how long you’re willing to allow us to make payments to you and what those payments are per month.
I hope that helps in answering your question. Just know that a cash offer is going to be low because we’re giving you a big chunk of cash. We’re going to take the comps that have sold around you. We’re going to determine if what you’re telling us about your property is accurate, meaning the repairs are what you say they are. If they’re heavier, than we’re going to deduct a little bit more because we have to pay someone to do that work, and then we’re going to take another 5-10% fudge factor that we just have to build in for unforeseen repairs, and that’s going to be your cash offer.
Typically, say $100,000 property. Your down at 85 with the level of repairs you need, and then we do another 10%. Let’s just say we’re down around, I don’t know, $65,000 on a $100,000 property. That could very well be the case. Okay. It’s all numbers for us. So, again, I hope that helps.
This is Brooks with YNP Home Solutions letting you guys all know how we come up with or giving you an idea of how we come up with our all cash offers. I don’t want to get into the terms deals just because they can be very complex and they’re very deal specific, but cash is pretty much the same all the time.
Leave your comments, questions below. Make sure you subscribe to the channel, and if you have a house that you need to sell, give us a call. 240-244-3953. We’re your local house buyer here in the Martinsburg area, Hagerstown, Franklin County, PA, and we’d love to help you out. Talk to you soon. Take care. Enjoy the rest of your Thursday and join us back tomorrow for question number eight. All right, guys. Take care.