Hi Everyone: Today’s topic is how much will an investor pay for my house in San Diego.
We’ll touch on some important things to remember when you’re thinking about how much an investor will pay for your home in San Diego. My name is Brian of Trusted House Buyers and I’m going to explore how much you can get for your house in San Diego real estate; thanks for watching.
Are you curious how much an investor will pay for your house in San Diego right now? Let me give you little insight into the process. First and foremost, you should know investors buy houses with the goal of making a profit, so they almost never pay what you’d get on the open market from the typical home buyer. If your home has been recently remodeled, your first option should be to hire a qualified real estate and bring it to market if your goal is to maximize the price you will receive.
But let’s dive a little deeper into the second option when considering investor buyers. There are various types of investors that will make an offer on your home.
One of the major types of investors are House flippers — these are investors who buy distressed homes, fix them up, and then resell them. They generally make an offer that is relative to what their repairs and cost may be for the house and also what they can then sell it for in the future. This is what Trusted House Buyers does and we’re a great option if you are looking for a quick and honest estimate on what you can sell your home for right now in San Diego.
Another type of investor are rental property investors. Their offer really depends on the property’s potential for future rental income and cash flow for the investor, not necessarily the sales value or constructions costs
Some folks use this rule of thumb: In general an investor is looking to make a 5%-15% profit from an investment home. The profit comes from any costs that may come from selling the property, remodeling the home (keep in mind oftentimes the entire home needs to be renovated to be up to the standards of today’s picky buyers) and any other maintenance the property may need. An investor looks at the After Repair Value, we call that the ARV. Let me tell you a little more about ARV. ARV is what the investors thinks they can sell the home for once they have finished their renovation. They will take into account recent area comparables and adjust up or down to derive at a value they’re comfortable with.
Of course, there are other factors that play a part in an investor’s valuation of your home, including:
- Age
- Location
- Condition
are just a few of the more important ones.
Keep in mind that some investors use the 70% rule to identify whether a home is a worthwhile investment. The rule states that an investor must pay no more than 70% of what they can sell the home for once they fix it up. This is a quick, easy way that some beginner investors look at the value of a home
Let’s work through an example of how much an investor will pay for a home in San Diego. Let’s say an investor in San Diego, uses all of the information available to them and determines that your home has an ARV (that’s the after repair value) of $800,000, and 70% of $800,000 is $5600,000. That means the investor must spend no more than $560,000 to buy the house from you. Keep in mind the offer you receive is very contingent on the amount of work the house needs.
Now that’s not necessarily how we work, because we will look at every house and situation individually, and derive at a specific number based on our process. So keep in mind Trusted House Buyers is simply an email or phone call away. We can quickly and accurately give you an offer on your house. Right Now. In San Diego. We take into account how old your home is, where your home is located in San Diego, and what kind of condition your home is in. We have a track record in San Diego on providing a fair and honest cash offer. That is a fact that cannot be said for all Buy Houses for Cash companies in town. Who you work with will matter during the transaction.
So here’s the bottom line: there are many factors that contribute to what you can sell your house for in San Diego. Do some research so you can understand the perspective of your potential buyer so you can have an informed discussion about your option. If someone is forcing you to a certain decision, but you don’t feel like it’s the right one, step back because that might be a red flag. Trusted House Buyers can offer you a cash offer, take your home as-is and close on your terms. For more information on how much an investor will pay for your home in San Diego, you can always call us at Trusted House Buyers by dialing, 619-786-0973.
