How does Horizon Home Buyers calculate a cash offer on a Spokane house?
Horizon Home Buyers starts with what the house would sell for in good condition, based on recent comparable sales in your Spokane neighborhood, then subtracts the cost of repairs it needs, our holding and closing costs, and a reasonable margin for taking on the risk. The result is a fair, written cash offer with no fees deducted from it. We show you the numbers and never pressure you to accept.
Most sellers want to know two things: how the number is built, and whether it is negotiable. Here is how we work.
The inputs
- After-repair value. What comparable homes in your part of Spokane have actually sold for recently, in updated condition.
- Repairs. What it will take to get the house to that condition: roof, plumbing, electrical, water damage, flooring, paint, and anything a future buyer’s lender will require. Our sister company handles restoration work locally, so these numbers come from real job costs, not guesses.
- Our costs. Closing costs on both ends, insurance, utilities and taxes while we own it, and financing costs on the rehab.
- A margin. We are a business, so the offer includes a reasonable profit for taking the risk of the project.
What we will not do
- We do not lowball with the intention of “renegotiating” after you have stopped talking to other buyers.
- We do not deduct fees or commissions from the offer.
- We do not tie the offer to an inspection contingency or bank appraisal, so it does not shrink at closing.
When a cash offer is the wrong choice
If your house is in good shape and you have the time and money to list it, you will probably net more on the open market. We will tell you that. Our offers make the most sense when the house needs work, the timeline is short, or the situation (probate, divorce, foreclosure, tenants) makes a listing impractical.