I buy houses in Hartford County, Middlesex County, Madison and Guilford, Connecticut. The numbers below are one example house, not a typical offer. On your house, I'll walk you through the math line by line.
The written version
You looked up your house on Zillow and it said $360,000. I offered you $260,000. Let me walk you through exactly how I got there. That number shouldn't be a mystery.
Zillow's number assumes a house that's completely updated and move-in ready, listed on the market and sitting for less than 60 days. If your roof is 20 years old, the windows need replacing and the kitchen and bathrooms are original, it's not the same house.
Here's what comes off:
- Repairs on a house like that: roughly $60,000.
- Holding costs while the work gets done. That's taxes, insurance and utilities, which is $15,000 to $20,000.
- My profit: $20,000 to $30,000. And yes, I make money. That's the business.
Now, here's what you don't pay. No agent commission, which on a house like this runs around $20,000. No repairs before listing, no showings, no strangers walking through, no waiting 60 days hoping it sells.
So the real comparison isn't $360,000 versus $260,000. It's what actually lands in your pocket and how long you wait for it.
Sometimes listing your home is the better decision. If it is, I'll tell you. I'll even introduce you to a trusted realtor who really knows your neighborhood, if you want.
Questions people ask
How is a cash offer on a house calculated?
I start from what the house would sell for updated and move-in ready. Then the repairs come off, the holding costs while the work gets done come off (taxes, insurance and utilities) and my profit comes off. On the example house above, Zillow said $360,000 and I offered $260,000. I'll walk you through that math on your house.
Do I pay a real estate commission when I sell for cash?
Not when you sell to me. There's no agent commission. On the example house, that commission would have run around $20,000.
When is listing with a realtor the better choice in Connecticut?
Sometimes it is, and if it is, I'll tell you. If you're not on a timeline and you want the highest price you can get for your house, listing with a realtor is the better choice. If that's you, I'll introduce you to a trusted realtor who knows your neighborhood.
If you want to talk through your situation, call or text me at 860.554.1140, or fill out the form. The conversation costs you nothing and you leave knowing where you stand.