Cash Offer Calculator — How We Determine Your Home’s Value
You deserve a clear answer to the question, “How do cash home buyers calculate offers?” At Orca Homes, we keep the process simple, fair, and transparent. Our cash offer calculator is designed to show you exactly how we determine the value of your home, step by step. No gimmicks, no hidden margins, just an honest explanation so you can make a confident decision about selling your property.
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Our Step-by-Step Process
- Property Assessment: Jessica visits your property to assess its condition and understand the scope of any necessary repairs or renovations.
- Cost Estimation: She carefully estimates the cost of all repairs, including materials, labor, and permits, keeping in mind the duration of the project as well
- Project Value Calculation: Jessica determines the potential market value of your property after all repairs are completed. This involves researching comparable sales in your area and considering factors like location, size, features, along with the projected sell date
- Financing Costs: She factors in the costs associated with financing the project, such as holding costs (taxes, insurance, utilities) and any loan fees. Although cash home buyers offer “cash”, they all use what is called “hard money” which is a high interest loan that real estate investors use to fund their projects.
- Selling Costs: She also factors in the cost of buying the home initially (title & escrow fees), along with costs to sell it on the market once flipped (title & escrow fees, excise tax, agent fees, staging, photography, listing, etc.)
- Profit Margin: Orca Homes typically includes a profit margin of 5-10% of expected after repair value
- Offer Calculation: Finally, Jessica subtracts the estimated repair costs, financing costs, and profit margin from the projected after-repair value to arrive at your cash offer.
Transparency is Key
We believe in being upfront about our process. Every homeowner we work with knows exactly how we calculate our offers. We’re happy to answer any questions you have and walk you through the details.
A Real Life Example
- Estimated Repair Costs: $80,000 (including full cosmetic remodel, window replacement, bathroom updates, HVAC and new roof)
- Financing Costs: $45,000
- Profit Margin: 10% of estimated after-repair value.
Calculation
Ready for a Fair, Transparent Offer?
Contact us today for a cash offer. We’re here to help you make the best decision for your situation.
Cash Offer Calculator FAQs
How accurate is a cash offer calculator?
A cash offer calculator gives you a strong estimate based on property value, repairs, and market trends. While it’s not the same as a professional appraisal, it provides a clear, transparent breakdown of how we calculate your cash offer.
Do I need to make repairs before getting a cash offer?
No. At Orca Homes, we buy houses as-is. You don’t need to fix, update, or even clean before we make an offer.
Will using a cash offer calculator cost me anything?
Not at all. Our calculator and evaluations are 100% free, with no obligation to sell.
What factors impact the cash offer on my home?
We consider the property’s condition, repair costs, recent sales in your area, and the after-repair value. We also factor in holding and selling costs, along with a modest profit margin, to arrive at a fair number.