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Our offer process
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How We Determine Your Offer
Our whole process is built to be smooth and stress-free. Unlike our rival, which will only purchase 5 per cent of the homes they sell, we're buying Homes Close You're selling 100 per cent of the homes we visit, regardless of location, condition or location.

No-Obligation, No Fee, All Cash Deals.

One of the top questions we have as an investor is, "How do you come up with your offer? Below is an in-depth breakdown of how we can decide what we can deliver on a house.

This is not the only way to evaluate our bid. Our offer estimate can be different depending on your situation and timetable, as well as what we expect to do with the property after purchasing it (remodeling/sale, rental, investor resale). Quick selling for you, and remodeling/re-sale for us is probably the most popular exit.
We Compare
home values in your area and do a market analysis
We Deduct
our estimated repair costs
$0
No commissions, no closing costs or hidden fees paid by you
Receive
No commissions, no closing costs or hidden fees paid by you
One way we calculate offers
Your Offer = (ARV) – (Cost of Repairs) – (Selling Costs) – (Holding Costs) – (Profit From Resale / Remodel).
Let’s Take a Look At Each Variable Used Above In Our Calculation

ARV

The ARV is the "Value of Repair" This is what the house would do if it had been completely remodeled to the current year's expectations. The ARV is calculated by running comps on properties in the neighborhood of the properties topic.

Cost of Repairs

This is pretty clear about what it means, but there is a crucial point that needs to be made. This is the "Our" cost of repair. This means that we are following our standard to make the HGTV house ready to talk.

It is important to understand that there is a major difference between the cost of painting a room and replacing a carpet, vs. painting, texturing, installing thick baseboards/crown molding and putting down hardwood floors, etc.

Selling Costs

This include fees, closing costs, and home warranty. Although you don't have to pay a realtor fee when you're using a Sell My San Diego House investor, we're going to have to renovate your house.

Holding Costs

As soon as we buy the house, we'll start paying all the stuff you've been able to avoid paying – taxes, insurance, electricity, etc. The longer we have to retain the property before selling it, the more we have to pay for the costs of keeping it. Every day you wait to close your deal, you lose the cost of keeping.

Profit from Resale

As much as we enjoy volunteering and helping homeowners out, we have to make a profit in our business, or we're not going to be able to do it for a very long time. This is where it comes into play.

Ready For Some Examples?
Realtor & Remodel vs. Sell My San Diego House
Disclaimer: This example is based on real estate and actual cost estimates. In other instances, circumstances can and will be different. The most important thing to understand is that the variables in the scenarios are consistent throughout the entire example.
Example Property Details:
  • The house was built in 1988 and it hasn't been done much, except for paint and carpet over the years.
  • Comps show houses like they sold $110K in a similar condition that had been on the market for 2+ months.
  • Comps indicate that the house would be worth $150K if it were remodeled to current standards (open concept, stainless appliances, wood floors, granite, etc.)
  • Your content is going to be here
Before we start comparing, we need to determine the holding costs.
Holding Costs ($110K house paying 2.39% taxes)
  • Taxes – $219.08
  • Insurance – $67.00
  • HOA – $20.00
  • Utilities – $250.00
  • Mortgage – $527.60

Total = $1083.68 per month

To make this example cleaner, we will round the holding costs to $1K per month.

We will also need to have the selling cost
  • Realtor commission (6%) = $9K
  • Closing Costs (2%) & Home Warranty = $4K
  • So the selling costs will be $13K total.
Let’s find out how much you would walk away with
  1. You talk to the realtor, they tell you they will get you $150K for your property if you repair it.
  2. You're going to contact the contractor to update the building.
  3. You're paying $25K to the contractor. He's remodeling the house and completing it on time in the two months they promised.
  4. Then you'll price your property at $150K. It's going to get a deal on the market for the first day at full price.
  5. You're going through the inspection time and there's no problem.
  6. You close the property 60 days after you first discussed it.
  7. The house is selling. You charged the cost of maintenance, keeping costs and sale costs.
A Break Down on the Numbers
Sold price = $150K

Repair Costs = $25K

Holding Costs=$4K (It took 4 months total to sell the property @ 1K per month)

Selling Costs=$13K

Our ideal scenario, after 4 months you are walking away with $108K, not too bad.
Now we are going to run the numbers for us to see how we determine your offer.
  • Since we're already working with builders, and we know how to set up a job scope and draw plan, the remodeling will cost us $15K, which will cost you $25K.
  • The scope of work and the drawing schedule shall be used by our contractors to ensure that they meet their estimated deadlines. We work with them to arrange projects, and to purchase all supplies so that they can concentrate on work. This means that we can only be finished in a month, when it took two for you.
  • Then we make the requisite profit for the deal and take all the risks. This will vary based on whether or not we're going to keep the property as a rental or sell it immediately. Let's assume our necessary profit = $19,000 in this situation.
A Break Down on the Numbers

ARV = $150K

  Repair Costs = $15K

  Holding Costs=$3K (It took 3 months total to complete and sell the property @ 1K per month)

  Selling Costs=$13K

  Profit From Resale=$19K

Using our Calculation

Your Offer = (ARV) – (Our Cost of Repairs) – (Selling Costs) – (Holding Costs) – (Profit From Resale)

Your Offer = $150K – $15K – $3K – $13K – $19K = $100K

So our offer to you would be $100K

A Closer Look @ the two options

Realtor & Remodel = $108K

Sell My San Diego House = $100K

In this case we would be offering you $8,000 less for your property than you would get if you spent the 4 months doing the work and listing the property instead.

But what if everything didn’t go as planned in the Realtor & Remodel scenario…
  • What if the contractor just left your $25,000 and didn't do any work?
  • What the contractor did was low quality work, and the house wasn't priced at $150,000. What if it was just $135,000?
  • What if the house didn't sell the day it went on the market, what if it stayed for a month or two before it received any offers?
  • What if there was a problem with the base or any other big issue in the inspection? $$$$

We're taking these chances, so you don't have to.

Let’s Look at another alternative… What If You Decided To List As-Is?

Listing As-Is has its own set of problems. Let's take the same house and see how much you can get.

It's more difficult to list a house like this if someone uses a bank loan. You would likely need to correct some of the issues reported in the inspection report or lower the cost of the land. If the individual offered you cash, they're not going to give $110K. They're going to give you $100K.

For the sake of convenience, let's say you ended up having to replace the HVAC system with a few small items that totaled $10K.

A Break Down on the Numbers
Selling price = $110K

Repair Costs/Cash Concession = $10K

Holding Costs=$4K (It took 4 months total)

Selling Costs=$10K

After 4 months your final take home would be $86K
Finally Lets See How Some Other Companies Calculate Their Offers

We're going to name this business – Home Buyer A

You're probably thinking that $80K is a really low bid. Why not just use the other equation? – New and novice customers don't use enough variables to make them less confident about the numbers they're dealing with. If investors are not certain, they appear to be more conservative and bid less.

A Break Down on the Numbers
ARV = $150K x 70%

Repair Costs = $15K

Desired Profit =$10K

Final take home would be $80K (Assuming they can close)
The findings are indicative of what you can find in the industry. You can get the most money often by taking the time to fix up and sell your home.
The question is: Is $8,000 more worth 4+ months of stress and uncertainty?

Selling your house to a quality home purchasing company like Sell My San Diego House You'll get a fast sale for a slightly lower price. You decide if you want to trade time and stress for a little more money. Selling your As-Is house on the market, or selling to someone who wants an unfair profit, would end up putting you in a similar situation about how much you're going away with.

Still Have Questions?
Call us now!
+1 (619) 387-7499
FAQs

How does the process work to sell my house?

After you have provided us with the property information, you will soon be contacted by an investor (usually within 24 hours). We may need to obtain additional information in certain cases. We should be able to make an offer right over the phone, or we will arrange a time to see the property and make an offer in person.

What types of houses do you buy?

All types! No matter the condition, area, price range, or situation, we will give you an offer! We buy houses as-is. No repairs necessary.

What does any condition, area, price range mean?

If your house is in foreclosure, over-leveraged, condemned, has breaches of liens or health department, not held, burnt, destroyed, or about to fall down, WE CAN BUY IT!

Is there any cost or obligation if I request an offer?

Ah, nothing! To address your situation, to make an offer or to purchase your house, we do not charge you any fees.

Am I under any obligation to sell my home?

Absolutely not! We're just going to review the details, make an offer to you, and you choose to accept or reject it. It's your choice!

Can you still help me if I am in bankruptcy?

YES! YES! With years of experience in managing these types of challenging situations, we are a specialist real estate solutions firm. For a confidential consultation, please contact us.

What does Selling Your House As Is Mean?

A typical sale requires an inspection and paying for maintenance, painting and cleaning. It's costly and time-consuming. Then, if it sells at all, it can take months or even years. That's why we do it differently. We will pay cash for your house "as is", which means:

 

No repairs. With us, sellers don’t have to spend time and money fixing up their house. We can buy a house even if it could use a few repairs.

Same for cleaning. It’s okay if there’s mold in the shower or cobwebs in the corner. We don’t mind.

No paying typical closing costs. We can take care of normal closing costs so the seller won’t have to worry about that aspect.

No open houses. Open houses can be stressful, as dozens of potential buyers wander through the home. With us, you’ll just meet with one person, a friendly local franchisee who is ready to make an offer.

No waiting on bankers. It can take a long time for a bank to grant approval, and we understand that waiting can be hard. That’s why we use a process that is quick and efficient. In fact, our sellers can even close in as little as three weeks.

I have another question...

Please contact us at contact@sellmysandiegohouse.org with your question and we’ll be happy to assist you.

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