The process of buying and selling a house is a straight road lined with a hundred speedbumps. These speedbumps are paperwork, inspections, audits, etc. They might not seem like too much work, but because of these tiny speedbumps, the process of selling a house might take months. Here at Belle Sol, we try our best to minimize the delays and get your house sold as quickly as possible.
The first step is to get in touch with us and provide us with extensive details. We’ll ask most of the questions via a phone call. It’s best if you include pictures of the property as well. There’s a chance we may buy the property without visiting the premises.
Once we review all the details provided by you, the selling party, we’ll give you a cash offer which will be a price we see fit for the house.
If you agree to the proposal offered by Belle Sol, you can set a closing date. On that date, you’ll receive the full cash amount, and the transaction will be completed.
So, we’ve claimed that we provide some of the best cash offers in the quickest times. But, how exactly do we come up with that number, and how is it different from the price you’ll sell on in front of a real estate agent? We obviously have certain criteria that we look at before we determine a price. Let’s take you through some of the factors that may increase or decrease the value of the cash offer.
To get an estimate for how much we should be paying you, we first do some research and get a potential price for your house after all the repairs are completed. We try to get an idea of how much the house could sell for once it’s in pristine condition. We arrive at this number by understanding the value of other properties around your neighborhood. The cost of houses in the same neighborhood is practically the same, and the recent sales that happened around your property have a direct impact on how much your property will sell for. We try to look at houses that were sold in the last year to account for changing market trends. Furthermore, we try to match the size, number of rooms, year of construction, and a lot of other factors and try to find the closest neighboring match to your property.
The number one factor that directly translates into decreased value are repairs. Most people sell their place when they need to make a lot of repairs, and they don’t have the financial stability to dumb a lot of cash on home repair. Such houses are unsellable on the real estate market. However, Belle Sol will buy them off your hands. The fact that we buy properties in bad condition doesn’t mean that we’re going to sell them in the same condition. The real estate market is highly competitive, and we’re aiming to sell to an individual that wants a house in impeccable condition. Moreover, we’re also going to spend a fair bit of time and money on improving the curb appeal of your property. These costs will be deducted from the ARV (After Repair Value).
Once you sell the house to us, we’ll have to keep spending money on some miscellaneous costs before it is ready to sell. This includes certain expenses such as holding costs, realtor fees (for selling the house later on), etc. If you were selling the house through a realtor, you’d have to pay these fees anyways. So, this isn’t anything extra. It’s just something you’ll have to pay either way.
At the end of the day, Belle Sol is a business, and it’s important that we remain profitable to keep the wheel spinning. We do keep a certain profit from your end as a cost of our services. However, this profit is very minimal as compared to some other services of the same kind. This helps us cover operational costs such as marketing, payroll, accounting, etc.
Here’s the magic formula:
Let’s get a practical example and take a look at exactly why our company is the best way to sell an old and outdated house.
The house above looks pretty impressive, right? It has a modern, minimalist design with a beautiful color scheme and amazing cupboards and countertops. The marble-lined behind the countertops also looks really amazing and creates an unreal aesthetic.
Let’s say that this house costs approximately $500,000. This is the final cost of this house, and it’s located in a fancy neighborhood. If we bought this house in bad condition, it wouldn’t exactly sell. Would it? We’re mentioning these details to clear up the misconception that Belle Sol bags up a ton of profit with every house. If we buy this house from you for $250,000 in bad condition and try to sell for $500,000 as it is, why would anyone buy it when the other houses around the neighborhood are in perfect condition and cost the same? Put yourself into a buyer’s shoes and consider the situation from their end. It would be an extremely bad investment if they bought it for $500,000. There’s a chance that we may be able to find a buyer for about $300,000. Even then, we’re not making any profit. Between the realtor costs, holding charges, and other expenses such as marketing, manpower, etc., we’ll actually be selling the house at a loss.
Let’s talk about how much we’re charging you and how much the house sells at the end.
Suppose the ARV (After Repair Price) of the house is $500,000. The repairing costs we need to spend on it in bad condition are $150,000. The miscellaneous costs (which are normally 10% of the ARV) are $50,000. Furthermore, we charge $50,000 more for our own personal profit. That amounts to $250,000, which is the final cash offer we’ll give a client for it. This math explains where all the money goes. We’re not pocketing a ton of money. Most of the ARV goes into making the house worthy of a reasonable price again.
Well, two words answer this simple question, it’s damaged. The traditional way of selling in the real estate market requires your house to be in perfect condition. Every buyer is looking for a house that they can buy and move in immediately. No buyer wants to spend thousands in repair even after they dropped several hundred grand to buy the house in the first place. So, it becomes your responsibility to make all the repairs and get the house ready for the new homeowner to move in.
However, that’s not always possible. As we already said, a repair will take several weeks, and the costs will be up in the thousands. There’s no guarantee that you have the financial stability to pay for those repairs. If you’re relating to this situation and don’t want to sell your house for less, Belle Sol Properties is the perfect company to sell your house to. We don’t care about how damaged the house is. We’ll buy your house in any condition regardless of how costly the repairs will be. However, we won’t be paying for the repairs from our own pocket. We’ll be taking it away from the cash offer you’ll receive.
It’s important to note that we are not going to make a cash offer equivalent to what the house was worth before. We’re making a cash offer based on what the house is worth in its current condition.