Will a Fix & Flip iBuyer pay close to fair market value?

Will a Fix & Flip iBuyer pay close to fair market value?

No.  Typically an iBuyer whose intention is to purchase the property, does a complete rehab and resell (Fix & Flip) will use a valuation model of 70 to 80% of After Repair Value (ARV) to base their offer price.  Keep in mind that generally this type of iBuyer is looking for major renovation projects. Mere cosmetic improvements (paint & carpet) will not be attractive purchases for this style iBuyer.



    • Related Articles

    • Understanding After Repair Value (ARV) in Real Estate Investments

      What is ARV? After Repair Value (ARV) is a forecast of a property's market value after undergoing all necessary repairs and upgrades. It's vital for agents, investors, and homeowners to assess the potential profitability and value enhancement of a ...
    • Will a Buy & Hold iBuyer offer close to list price?

      YES. Typically, Buy & Hold iBuyers will offer 90 to 95% of fair market value.  This is generally speaking as each iBuyer will have different investment goals. Offer prices may vary and will also depend on the degree of cosmetic updating (i.e., paint ...
    • What is an iBuyer?

      Understanding iBuyers within the ExpressOffers Platform An iBuyer, or "instant buyer," is a specialized entity that leverages advanced technology, including data analytics and proprietary algorithms, to make immediate, as-is purchase offers on homes. ...
    • Understanding ARV Percentages

      When we talk about 70-80% of the After Repair Value (ARV), we're essentially discussing the profit margin an investor aims for. This percentage serves as a guide, not a rigid law, and individual investors may adopt strategies that seek more or less ...
    • Colorado ExpressOffers Procedures

      Jes and I created a video to explain why we have to do the procedure this way. Watch it here. Situation 1: You found an off market property that would be a candidate for the ExpressOffers program: Check to ensure the property completely fits a Buy ...