How Does We Buy Houses Work? - We Buy Houses In Bay Area

How Does We Buy Houses For Cash Work?

“How do I sell my house fast in the Bay Area for Cash…?” is probably what you’re thinking. A lot of Californian home buying companies boast fair offers, offers within 24 hours and some even give offers without even setting foot in your property!

Yeah… right!

I have years of experience in this industry, and believe me - they will not have your best interests in mind. Most of the time, you will receive an inflated offer to discourage you from looking at offers from other companies. These companies will have you sign a contract, afterwards they will attempt to lower the offer using the results of an inspection.
Don’t Fall For That!
I’ll show you the honest and most truthful way of how we do business, for you and your family.

How We Make Our Offers To Buy Your Bay Area Home

It’s In Our Best Interest To Give You Our Highest Possible Offer

My team and I spend our days doing home analysis so we can get you cash for your home in the Bay Area. We mostly spend our time driving to properties all over the Bay Area to help homeowners with their selling needs, but more importantly, these services are 100% FREE to you! I’ve learned that no one will accept a low offer in today's economy, and we would have spent so much of our own time, money and effort for nothing.

Therefore,

We stay in business by getting offers accepted and by helping those in need. Our winning formula is made up of giving offers you’ll be happy with! We do our best and then some to give you the highest possible offer imaginable.

Our Offers Are Based On Your Home’s “After Repair Market Value”!

We look at the finished product - at the value of what your home would be, completely fixed. Based on this value, we formulate our offer to you.

For example,

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   Imagine that you have a house you want to sell.

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   Now imagine that your neighbor has the exact same, identical house - except for a few upgrades. Maybe some granite countertops, a fresh coat of paint, new roof shingles and some new hardwood flooring.

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   Now imagine that they sold their house for $600,000.

Now, how does this help us?

Well, now we know that if make similar upgrades to your house (AFTER buying it from you of course), bringing it very close to the condition of your neighbor’s home, we would also be able to sell it for $600,000

So, now that we know the Market value of your home if we fixed it up (in this case $600k), and we know the cost of the repairs/upgrades. We can now make an offer that works for us. If this offer also works for you, we close and you get your money at closing! We make our offers based on the market numbers, and find it ethically appalling to make an offer based on how desperate you may or may not be able to sell.

Here's how we formulate our offer:

If you love math, you will appreciate this breakdown. Honesty and Transparency are cornerstones for our business, and we have no issues sharing with you how exactly we formulate our offers.

[Your Offer] = [After Repair Value] – [Cost Of Repairs] – [Our Selling Costs] – [Our Minimum Profit]

And this is a glossary of the terms above.

After Repair Value (ARV): This is what the market value of your house will be AFTER we buy and renovate the house.

Cost Of Repairs (COR): This is what our cost will be fixing/updating the house AFTER we purchase it from you.

Our Selling Costs: Although we buy houses without involving agents, we on the other hand, have to use an agent to sell that house again AFTER we have purchased it from you and fixed it up. So we have to pay agent fees, closing costs, taxes, holding costs etc. These are all the fees you do NOT have to pay, if you sell your house directly to us! This is usually 10% all together of selling price. (Our Selling Cost = 10% x ARV)

Our Minimum Profit: We keep this to an absolute minimum so we can present you with the highest possible offer. See, our business model is structured around making many deals with a little profit per deal, and not a few deals with a huge profit per deal. This benefits all.

Long story short...

The market value of the house (after we fix it up), minus our costs fixing it up (including our profits), will be the offer.

Receive Your Free Offer Today!

We buy houses in any condition. No realtors, no fees, no repairs, no cleaning.

Find out how much we can offer you for your house!

Now for a real world example….

Here's a house I worked on recently!

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   Let’s say this is your house in its current condition.

Not too bad right? A little tender love and care will make it look beautiful. All it needs is some modernization.

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   Now remember what we said about your imaginary neighbor with the same house as yours? They got a new roof, put granite countertops in, and put in some new hardwood floors. This is what their house looks like after their renovation.

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   Well, no wonder he sold it for $600,000, it is gorgeous! WOW!

Now you can understand that in order for us to also be able to sell your house (well, our house after we buy it from you) for $600,000, we need to bring your house to the same condition as the house of your neighbor, or better, so that we can also sell it for $600,000.

We would not be able to sell this house in its current state for $600,000 when all the other houses that are currently for sale in your area look as gorgeous as your neighbor’s. Look at it from the viewpoint of a potential homebuyer, would someone be interested in buying a home that is in lesser condition for $600,000 when a much nicer home sells for the same price? It would make no sense to do so.

So you’re probably thinking “Okay, if the house after it is completely fixed and updated would sell for $600,000, how much would it sell as is?”

Sell My Bay Area Home for Cash or Should I List It As Is?

Let’s say that you have contacted an agent about your home, and he or she tells you that it’s current condition is worth $470,000.

After speaking with them, you call us and I pick up the phone. My team and I would schedule a meeting with you. We will arrive and I will have my contractor and if I can, my agent with me. I bring our contractor and our agent to the walkthrough, so that our agent tells our contractor what needs to be fixed (as he/she knows what buyers are currently looking for) and what does not need to be fixed (to save on the cost of repairs).

Our agent tells us that we need granite countertops, hardwood flooring, and new roofing, because the neighbor across the street sold their home for $600,000 - also had granite, hardwood floors and new roofing.

Meanwhile, our contractor gives us an accurate estimate of the Cost of Repairs. We will know what needs to be upgraded with the walk-through, and after we know exactly what all the numbers look like, we will have already finished selling the home in our minds.

The more accurate these numbers are, the higher your offer will be! Let’s say our contractor gives us a cost of repairs of $80,000.

Now here is the breakdown of all the numbers.

As-Is Value = $470K
ARV (After Repair Value) = $600K
COR (Cost Of Repairs) = $80K
Our Selling Cost = 10% x $600K = $60K
Let’s say Our Minimum Profit For This Purchase = $40K

[Your Offer] = [ARV] – [COR] – [Our Selling Costs] – [Our Minimum Profit]
Your Offer = $600K – $80K – $60K – $40K = $420K
Your Offer = $420K

Now that you have witnessed it, we play solely by the numbers. As I have said earlier, my company and I find it ethically appalling to make an offer based on how desperate you may or may not be able to sell. We simply add the numbers and try our best to give you the highest possible offer available. We want to make sure that you are happy, and from there we can get the process to move forward. We are looking to help, and once we are done - we are on to help the next homeowner and their family.

Now here is an analysis based on a situation where you sold your home with an agent.

Seeing how the house is worth $470,000 as is, which means that if you listed it with an agent, you could potentially sell it for $470,000. We all know deals are made and you may or may not have to negotiate, but this takes a lot of time and comes with a lot of headache. Let's say you sell it full price for $470,000. Great! However, your agent may take fees up to 6%! We haven’t even mentioned the closing costs yet! This leaves you with (hopefully) $432,000. Also, keep in mind on how long your home is going to be on the market for. Three, maybe even six months? There is no guarantee that it will be sold quickly or even within a year.

So now you have to make a decision.

Sell it for a guaranteed sale for $420K in as little as 10-20 days, or a “maybe sale” for $432K hopefully within 4 to 5 months.

BUT HOLD ON

What If The Cost Of Repairs Was $20K Instead Of $80K?

This is where things get a little exciting. Now the offer becomes:

As-Is Value = $470K
ARV (After Repair Value) = $600K
COR (Cost Of Repairs) = $20K
Our Selling Cost = 10% x $600K = $60K
Let’s say Our Minimum Profit For This Purchase = $40K

[Your Offer] = [ARV] – [COR] – [Our Selling Costs] – [Our Minimum Profit]
Your Offer = $600K – $20K – $60K – $40K = $480K
Your Offer = $480K

Now you can see how you can come out with even more money than what the house is currently worth. It is worth $10,000.00 MORE than what the house is currently worth, and almost $48K more than what you would get if you had listed it with an agent (remember that you would hopefully get $432K after all the listing and agent fees). Again, our offers are based on the numbers, not on how desperate you are to sell.

Find Out How Much We Will Pay For Your Home in Cash!

WHY NOT REQUEST AN OFFER BEFORE COMMITTING TO A 6 MONTH CONTRACT WITH AN AGENT? NO UNCERTAINTIES FOR THE FUTURE, NO FEES, NO REPAIRS, NO CLEANING AND BEST OF ALL - NO HASSLE!

Sell Your Bay Area House to Us And Be Free of All Stress

All cash offers are based on the After Repaired Value of the property. This allows us to present higher offers. Let our team handle everything. Step back, relax and let the experts help you, while you just wait for your check!

Receive Your Free Offer Today!

We buy houses in any condition. No realtors, no fees, no repairs, no cleaning.

Find out how much we can offer you for your house!

Why Our Offers Are Better

I know that a lot of companies say this, but we have and will do better. My team and I will show you and your family why we are the best and why our offers are so amazing. The reason being is, we make our offers based on the value of your home in its best condition. Completely fixed and updated. Then we factor in the cost of what it would take to fix or update your home.

If we can keep the costs of repairs down, we can give you even more cash for your Bay Area Home, as we previously explained above.

My team and I try to do as much work ourselves so we do not have to pay an expensive contractor to do everything. Obviously, it may get a little hectic due to the fact that we buy a lot of houses at a time, but we genuinely try to keep contractor numbers as low as possible so we can get you your highest return for your home, in cash - here in the Bay Area.

Now you’re probably wondering, Why do we give you the highest possible offer? As I have said before, there is nothing wrong with competition, but if we can give you more than what our competitors can, you will sell to us - which is what we want. The more houses we can sell - the faster we can help others.

Now here are some questions I get asked a lot…

How Do You Sell A House By Owner (FSBO)?

Selling your house by yourself is very doable. It takes a lot of work and research but it is absolutely doable.

  • First you need a solid understanding of your market.
  • Find out how much the house is worth as is. Do not just think your house is worth a lot because you like it! Sellers often think their house has a lot more worth because “it is prettier than my neighbors”.
  • Pay for a flat fee to list the property on the MLS.
  • Learn how to effectively market the property.
  • Learn how to negotiate effectively.
  • Hold open houses and learn how to handle the tough questions asked during the open house.
  • Make sure you know all your laws in your area pertaining to real estate transactions!

Are There Closing Costs When Selling By Owner?

Yes, there will be costs associated if you sell your house yourself. Attorney fees, closing costs, holding costs, title insurance, escrow costs, and more of the house for as long as you own it. As you are selling it yourself however there will not be any agent fees. The other costs however still are significant.

We Are Cash Home Buyers In The Bay Area

"We Buy Houses Bay Area" buys houses in the Bay Area of California. We are House Cash Buyers in the Bay Area of California. My team and I eliminate all the nuances and encumbrances that go along with the traditional way of selling your home. We have our own cash. We buy as is and close quickly. We are not agents and we have no intention to list your house. Best of all, we do not rely on bank approvals, and there are no agent fees or commissions - which means more time saved and more money in your pocket. I am absolutely ready to buy your Bay Area home right now, and I can close immediately. It all starts by filling out our form.

Google Rating
4.6
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Shavi A
Shavi A
1708737289
I have to say this company exceeded my expectations in every aspect. What stood out for me was their commitment to a hassle-free home-selling experience. The absence of agent fees, inspections, and repairs made a significant difference, both in terms of time and money. The process was quick, and I received immediate cash for my home. Their local expertise was evident, and they handled my unique situation with flexibility and understanding. Selling with them was a wise choice, and I can confidently recommend their services.
Pam Weingarten
Pam Weingarten
1626809931
Eugene was a pleasure to work with during this stressful process. He was very clear on home value and what could be offered. While I did not complete the sale with Eugene due to other circumstances, the whole process was seamless and easy. I would highly recommend Eugene for anyone considering selling their home as is or in need of a quick move.
Jamie Angus
Jamie Angus
1585178470
Like many customers, I don’t really leave reviews. If I enjoyed their service, I’ll keep that in mind when I refer them to friends or other people I know. Eugene and his team really exceeded my expectations. They broke down what it took to sell my Bay Area house quickly and made me a deal I was beyond comfortable with when it came to moving to another location. I would highly recommend Eugene and his team for anyone or their family when looking for a great cash deal for their home.
Whenever I refer clients to Eugene of We Buy Houses in the Bay Area they always give me a call after working with him and they always have something positive to say. I can see how hard he works to make sure that his clients are completely satisfied. He has helped so many people escape some terrible situations and they love him for it. I will continue to work alongside him and make sure to send clients his way within the Bay Area, it is the least that he deserves 🙂
Ben Brown
Ben Brown
1583699078
If you’re looking to sell your home without the stress of realtors and inspections, call Eugene Romberg. He was ethical in his approach and impressed me with how professional he was. Don’t delay, call Eugene and he will help you like how he has helped me and my family.
I was very impressed with the work that Eugene did for my home. He isn’t pushy and I actually liked how he educated me through the whole process. Unlike other home buyers, Eugene actually wants you to talk to a realtor and have multiple options ready. I was 100% percent comfortable with working with him.
Eugene and his team created an amazing experience for me and my family. He was totally honest and made sure we understood every step of his process. I am more than thankful to work with him to sell my Bay Area home.
Jose Gutierrez
Jose Gutierrez
1582749829
Eugene really helped with the renovation process of our former home, not only that but he gave me a great cash offer on my house in San Jose.
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