How It Works
How do we determine a fair offer price?
GTG Buys Homes values honesty and transparency. We are open about our method because homeowners should know. After considering the 5 factors below, we offer a price that’s reasonable for you and reasonable for us. Keep in mind that these are ESTIMATES so the sale price is negotiable. We’re very flexible!
- Comps – comparable houses with similar characteristics that were recently sold in the area to estimate value from renovations. They are also used to estimate the value of the property after renovations or the after repair value (ARV).
- After repair value (ARV) – the estimated value of a house AFTER we buy and renovate the property. Comps are used to estimate the ARV.
- Repair costs – the estimated costs for renovating a property really depends on its condition. Some of the houses that we’ve purchased needed light rehab, while others required a full renovation.
- Selling costs – we pay ~10% of the ARV for agent fees, closing costs, taxes, and holding costs.
- Minimum profit – GTG Buys Homes is a business after all so we need to make a profit in order to stay in business. That said, the profit needs to be worth the risk in case we can’t sell the property or find a tenant. Our target profit is usually ~10% of the ARV.
Fair offer price formula
We can complete the entire process within 7 days or on your schedule.