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.
What does After Repair Value (ARV) mean?
The After Repair Value (ARV) estimates the future value of a distressed property after it's been repaired or improved. ARV is commonly used by fix and flip investors who purchase, renovate, and sell properties within one year. A property's after ...
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 does 70-80% of ARV mean?
So here’s an example of an actual eXp CLOSED transaction: Property listed in the MLS at $300,000 - After Repair Value (ARV) of the property (once totally rehabbed and pristine) is $415,000 - this also represents the top sold comparable in the ...
What is an iBuyer?
An iBuyer is a company, investor or group of investors that use technology to make an offer on your seller's home within minutes (or days), sight unseen, based on a proprietary valuation model. If your sellers choose to accept the offer, they can ...
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 ...