So You Want To Sell Your House Fast For Cash!
… And Still Want A Fantastic Offer!
Here you are wondering “How do I sell my house fast in St. Louis for cash“, thinking that these Mo house buyers will offer you an insultingly low number for your house. All these St. Louis home buying companies boast fair offers, offers in 24 hours, and some even give offers without even setting foot in your property.
Yeah… right!
Believe us, they will not err in your favor. Those offers are inflated offers to discourage you to look for more offers from other companies. They will try to have you sign a contract and after the contract is signed they will attempt to lower the offer using the results of an inspection. Don’t Fall For That!
But enough about doing it the wrong way. Let us show you the right way!
How We Make Our Offers To Buy Your St. Louis Home
It’s In Our Best Interest To Give You Our Highest Possible Offer.
“We Buy Houses” companies will often try to give you the lowest possible offer. This doesn’t make any sense to us. We spend time and effort doing your home analysis so we can get you cash for your home in St. Louis. We spend time and money driving to properties all over St. Louis. All these services are 100% FREE to you! No one will accept a low offer and we would have spent so much time, money and effort for nothing.
Therefore,
“Patriot Buys Houses” stays in business by getting offers accepted, and the only way to do that is to give offers you’ll be happy with! We truly do our best to give you the highest possible offer we can give. Now you know why we have such raving reviews! 🙂
Our Offers Are Based On Your Home’s “After Repair Market Value”!
This simply means, we look at what the value of your home would be, completely fixed up. Based on this value we will formulate your offer!
How Exactly?
Well, imagine you have a house that you want to sell…
Now, also imagine your neighbor, has the exact same, identical house as yours, except for a few upgrades he made… say, he added granite counter tops, removed wallpaper, applied a fresh coat of paint, put a new roof on, and put hardwood floors in.
Now Imagine he sold his house for $300K.
What Do We Know Now?
Well, we know, that If we make the same upgrades to your house (AFTER we buy it from you of course), bringing the house to a very similar condition as your neighbor’s house, we would also be able to sell it for $300K.
So,
We know the Market value of your house if we fixed it up (in this case $300K), and we know the cost of repairs/upgrades. We can now make an offer that works for us. If this offer also works for you, great we close and you get your money at closing! As you can see, we make offers based on the market numbers, not based on how desperate you may or may not be to sell.
The Offer:
All you math lovers out there, will appreciate this section. We value honesty and transparency. We have no issues sharing with you how exactly we formulate our offers.
[Your Offer] = [After Repair Value] – [Cost Of Repairs] – [Our Selling Costs] – [Our Minimum Profit]
But in order for you to understand this we need to define some terms.
After Repair Value (ARV): This is what the market value of your house will be AFTER we buy and renovate the house. Yup we are just like your favorite HGTV flipping show.
Cost Of Repairs (COR): This is what our cost will be fixing/updating the house AFTER we purchase it from you.
Our Selling Costs: Although we buy houses without involving agents, we on the other hand, have to use an agent to sell that house again AFTER we have purchased it from you and fixed it up. So we have to pay agent fees, closing costs, taxes, holding costs etc. These are all the fees you do NOT have to pay, if you sell your house directly to us ;). This is usually 10% all together of selling price. (Our Selling Cost = 10% x ARV)
Our Minimum Profit: Yeah, this IS a business after all, and we wouldn’t be able to stay in business, buy more houses, pay contractors, plumbers etc, if we didn’t make some sort of profit. However, we keep this to an absolute minimum so we can present you with the highest possible offer. See, our business model is structured around making many deals with a little profit per deal, and not a few deals with a huge profit per deal. This benefits all.
English Please!!
HERE IS AN ACTUAL CASE STUDY
Let’s say this is your house in its current condition:
Not bad right? OK it could use a bit of sweet tender loving but not too shabby. It is just outdated…
Now remember, your neighbor with the exact same house as yours? He got a new roof, updated the kitchen and bathrooms, put granite in, removed carpets and put in hardwood flooring? Well, this is what his house looks like after he did the changes:
Well, no wonder he sold it for $300K, it is gorgeous! WOW!
In order for us to also be able to sell your house (well, our house after we buy it from you) for $300K, we need to bring your house to the same condition as the house of your neighbor, or better, so that we can also sell it for $300K!
Why?
Because we will not be able to sell the house in this current state for $300K when all the other houses that are currently for sale in your area look as gorgeous as your neighbor’s. Would you as a buyer be interested in buying a house in lesser condition for $300K when a much nicer house sells for the same price? No, of course not!
So an obvious next question you’d ask, would be:
OK, if the house after it is completely fixed and updated would sell for $300K, for how much would it sell as is?
Sell My House In St. Louis For Cash Or Should I List It As Is?
Let’s say you contacted an agent and she/he says, that your house as is, in its current condition is worth $190K. Now you have contacted the most awesome, friendly, amazing, highest ranking house buyers in all of St. Louis… (us.. duhhh)! If you have not,… well, shame on you, you really should!
We would come in, with our contractor and if we can, our agent. (We bring our contractor and our agent to the walkthrough, so that our agent tells our contractor what needs to be fixed (as he/she knows what buyers are currently looking for) and what does not need to be fixed (to save on the cost of repairs)).
Our agent: tells us, that we need granite countertops, because the neighbor across the fence that sold his house for $300K, also has granite, as well as hardwood floors, removing wallpaper, installing new appliances etc.
Our contractor: gives us an accurate COR (Cost Of Repairs). See, we know exactly what we will do to the house the second we are done with the walk-through and we have already completed the flip in our imagination and we know exactly what all the numbers will look like.
The more accurate these numbers the more accurate (and the higher) your offer will be! Let’s say our contractor gives us a cost of repairs of $70K.
Now We Are Ready To Make You An offer!
Here are the numbers:
As-Is Value = $190K
ARV (After Repair Value) = $300K
COR (Cost Of Repairs) = $70K
Our Selling Cost = 10% x $300K = $30K
Let’s say Our Minimum Profit For This Purchase = $40K
[Your Offer] = [ARV] – [COR] – [Our Selling Costs] – [Our Minimum Profit]
Your Offer = $300K – $70K – $30K – $40K = $160K
Your Offer = $160K
As you can see, we play by the numbers. We do not make offers based on how desperate you may or may not be. We don’t base offers on some percentage of the After Repaired Value (that is ludicrous). We simply add the numbers up trying our best to give you the highest possible offer we can make you, to make sure you will be happy, and thus to make sure the contract will be signed, so that we can get our next flip going! Makes sense doesn’t it!
Analyzing The Offer
So, the house is worth $190K as is, meaning if you listed it with an agent you could sell it for $190K. Yet after 6% agent fees and closing costs you would probably get about $174K for it, after it will be on the market for 4? 5? months! And no one can guarantee the house will actually sell.
So now you have to make a decision.
Sell it for a guaranteed sale for $160K in as little as 10-20 days, or a “maybe sale” for $174K hopefully within 4 to 5 months.
~Decisions, decisions..
BUT WAIT!!!
What If The Cost Of Repairs Was $30K Instead Of $70K?
Now things get interesting! Now the offer becomes:
As-Is Value = $190K
ARV (After Repair Value) = $300K
COR (Cost Of Repairs) = $30K
Our Selling Cost = 10% x $300K = $30K
Let’s say Our Minimum Profit For This Purchase = $40K
[Your Offer] = [After Repair Value] – [Cost Of Repairs] – [Our Selling Costs] – [Our Minimum Profit]
Your Offer = $300K – $30K -$30K – $40K = $200K
Yup! That is $10,000.00 MORE than what the house is currently worth, and almost $30K more than what you would get if you had listed it with an agent (remember that you would only get $174K after all listing and agent fees). Again, our offers are based on the numbers, not on how desperate you are to sell.