The Trusted Home Buyer Logo602-456-4440

How To Formulate An Offer For A House When Buying Cash In Phoenix – 3 Strategies To Formulate Offers

Martin Boonzaayer

December 4, 2019

Investing in real estate with cash is a smart way to buy but it’s not easy to know how to make an offer. If you’re wondering how to formulate an offer for a house when buying cash in Phoenix keep reading to learn more and to see how we do it…

You’ve Got A Property In Mind… Now What?

If you are looking for a real estate deal to acquire for cash and now you’re wondering how to formulate the offer, you’ll love these 3 strategies that many investors use daily to acquire deals in Phoenix. Be aware that they may take some practice… and they won’t work for every seller you meet so test them out a few times to perfect your ability to use them. Once you perfect them, you can use this as a system over and over to quickly and easily make offers.

#1. Market Price Less A Percentage

The first way to formulate an offer for a house when buying with cash in Phoenix is to find out what the market price is for the property and then subtract a percentage. You can get the market price by “pulling comps” (finding out what similar properties have sold for recently in the area). You can sometimes get this information yourself but if you partner with a real estate agent they can do it for you. Comps will tell you how much other similar properties have sold for recently and then you can subtract a percentage to formulate your offer.

For example, you can offer market price less 20%. So a $100,000 comp would mean that you’d offer $80,000 for the property.

#2. Profit Plus

The second way to formulate an offer for a house when paying cash in Phoenix is to work the other way (and to factor in what you can sell the property for). Figure out how much you want to make and then add your costs. That way, you build in profit into the deal. However, this way can be challenging if you don’t know how to accurately estimate your costs, so make sure you build a good relationship with a contractor who can help you.

For example, if you want to make $15,000 on the property and you know that the property will cost $25,000 to repair then you might offer $30,000 to the seller but plan to sell it for $45,000. Using this strategy helps you think ahead to consider what you can get for the property and whether you’ll be able to make a profit.

#3. Seller Financing

No discussion about how to formulate an offer for a house when buying cash in Phoenix would be complete without talking about seller financing. The first two strategies have highlighted a single sum that you would pay the seller but when you factor in seller financing into the mix, it changes everything: with seller financing, you might pay some cash and then have the seller carry the note for the remainder. This can adjust your profit point and how much you can pay for each deal.

Alternatively, you can bypass all the work and effort of formulating offers and making deals with sellers and instead to buy a property from us. We sell attractively-priced investments and have done all the hard work for you!

To see our inventory of available real estate investments, click here and enter your info or pick up the phone and call 866-488-9923.

Explore more

May 19, 2022
How The Trusted Home Buyer Helps Seniors And Their Families 

Our team is passionate about helping seniors when they are ready to transition to senior care living. Our team members are Moms House certified and have been actively out in the community, networking with people in the senior health industry. Our program was designed to help seniors and their families with one of the biggest […]

Read More
March 24, 2022
How To Sell A House In Probate

After there is a death in your family, the idea of selling the family home can be a very difficult one to make. Not only are there memories tied to the home, but there is also a large list of complications that come with the probate process. Understanding how this process works can be a […]

Read More
March 2, 2022
I Want To Sell My Mobile Home Quickly

If you want to sell your mobile home quickly, you can take a few routes, each with its own level of work on your part. For example, you have the option to sell to an investor for quick cash. You can fix up your property and list it yourself. You can hire a real estate […]

Read More
February 9, 2022
How to Declutter a Hoarders House

If you own or have inherited a hoarder home and want to declutter, it can be very overwhelming. Typically there are years of accumulation of stuff that makes the process seem impossible at times. But it is not impossible, and we have a helpful list that will aid in your cleaning and help you determine […]

Read More
The Trusted Home Buyer Logo
Copyright © The Trusted Home Buyer
WE BUY HOUSES IN:

4.7 61 reviews