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How We Make Our All-Cash No Obligation Offer To Buy Your Sacramento Home
It’s In Our Best Interest To Give You Our Highest Possible Offer
Primary Home Solutions stays in business by getting offers accepted and the only way to do that is to give you an offer that works for you. We do our best to give you the highest offer we can.
An objection we get all the time is, “well, you’re just going to low-ball me.” Hey, we worry about this as much as you do. The last thing that we want to do is take up your valuable time and then make an offer that you find insulting. But sometimes the numbers are what they are. If we can’t make you an offer that works for you, then at least we part having done the very best that we could.
So, how do we calculate our offer?
Our Offers Are Based On Your Home’s “After Repair Market Value”!
At Primary Home Solutions, we base our offer on what we call the 'After Repair Value' (ARV) of your home. This isn't just a random figure. It's a meticulous calculation derived from years of experience in the real estate market. We evaluate your home as if it were in its best condition, considering every upgrade and renovation that could potentially boost its value.


Imagine you have a house you want to sell . . .
Now imagine that an identical house down the street just sold recently. It was upgraded, which means your neighbor added granite counters, new hardwood floors, new carpet in the bedrooms, painted inside and out, and added a new roof. They also did some extensive landscaping to give the property a nice curb appeal.
Now let’s assume he sold his property for $400,000.

Now What Do We Know?
We know that if we do those exact same upgrades to your house after we buy it, it would sell for $400,000.
So,


We know the market value of your house all fixed up is $400,000.
And we know what repairs and improvements need to be made to sell your house for $400,000.
As long-time professionals in the real estate industry, we have a keen understanding of the costs involved in renovating and improving properties. From materials and labor to transactional expenses like property taxes and insurance, we leave no stone unturned in our assessment.
Our team's expertise ensures that every aspect of the process is accounted for, guaranteeing transparency and fairness in our offers.
And we know how much profit we need to make to stay in business.
We can now make you an offer that works for us. If this offer also works for you, great! We sign a contract, set a closing date and you get your money!
As you can see, we make offers based on the numbers, not based on how desperate you may or may not be to sell.

Let’s do a bit more math.
Let's set it out in a formula!
[After Repair Value] – [Cost of Repair] – [Holding Costs] – [Our Profit] = Your Offer
Let’s define some of these terms:
After Repair Value (ARV): This is the market value of your house after we buy it and repair/improve it.
Cost of Repairs: This is what our cost will be for our contractors to fix the house after we buy it from you.
Holding Costs: We don’t use an agent when we buy your house but we need to pay an agent when we list the house after the renovations. We also have to pay utilities, property taxes, insurance and closing costs. These are all the costs you don’t have to pay if you sell to us. These costs are usually 10 to 12 percent of the ultimate sales price.
Our Profit: Primary Home Solutions is a business and in order for us to stay in business and help more people like you, we need to make a profit. We try to keep this profit to a minimum so we can make you the highest offer possible.
So what does this mean for you?
It’s simple!
The Market Value of your house all fixed up, minus all of our costs (repairs, holding costs, profit) equals Your Offer.
Let’s put numbers in the formula.
Like we said before, the market value of your house all fixed up is $400,000.
Our cost to repair/improve is $70,000.
Our holding costs are about $40,000.
Let’s say our profit is $50,000. (Too much? What happens if the market goes down and the house won’t sell for $400,000. We can’t come back to you and ask for some of our purchase price back. Or what happens if we discover a major leak which wasn't visible when we first saw the property. This could be a very expensive repair. The difference will come out of our profit. And our profit pays our staff, our office costs, and our salaries.)
So here’s your offer –

$400,000 - $70,000 - $40,000 - $50,000 = $240,000
Now you talk to a realtor and they tell you they can list your house in it’s current condition for $290,000. Well, that sounds a lot better than $240,000! But is it?
Let’s look at the numbers if you list the house:
$290,000 Sales Price
$ 14,500 Commissions (5% is standard)
$ 5,800 Closing Costs
$ 5,000 Holding costs – your mortgage, taxes, insurance, etc. while you wait to sell the house
$ 7,000 Buyer concessions – many buyers will ask for a credit for repairs or to cover their closing costs, especially if they are FHA borrowers.
$257,000 Net Proceeds to you
Is that more than the $240,000 we offered you? You bet it is.
But consider this . . .
- We can close in 10 days. A traditional buyer needs to get a loan and usually closes in 60 days after they have a signed contract. (And you save most of your holding costs so add another $5000 in your pocket!)
- We don’t do inspections. A traditional buyer will conduct inspections and may come back for a credit (they usually do) or they may back out, causing you to put the property back on the market. And now you need to disclose the defects found in the report to any subsequent buyer - that's the law!
- We pay cash. A traditional buyer needs to get a loan. Often they fail to qualify and need to back out of the deal. A saying in the business is that a seller usually needs to sell their house 3 times before they actually get it sold! Keep in mind, if the condition of your house is bad, a lender might refuse to make a loan on it unless you make major repairs. The roof can’t leak, the heater needs to work, there can’t be dry rot or plumbing leaks. We don’t care about any of that.
Would you rather have a sure thing, close the sale in 10 days and move on with your life for $240,000 or would you rather wait for months (sometimes 5 to 6 months) to get $257,000?
The decision is yours! Sell it for a guaranteed $240,000 in 10 days or wait and hopefully sell it for $257,000 in 4 to 5 months?

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