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\n <\/div>\n \n Sell Fast With a Cash Offer or Top agent<\/h3>\n
Get an all-cash, no-obligation offer in 24 hours through HomeLight’s Simple Sale platform and close in as few as 7 days. You can also compare the offer with an estimate from a top agent.<\/span><\/p>\n \n The 70% rule is a formula that many house flippers<\/a> use to determine the maximum price they should pay for a property. The calculation is:<\/p>\n (After-repair value \u00d7 70%) \u2013 Estimated repair costs = Maximum offer price<\/em><\/p>\n Let\u2019s say a house flipper estimates that your home will be worth $300,000 after repairs. They also calculate that it will take $50,000 to renovate the home.<\/p>\n ($300,000 \u00d7 70%) \u2013 $50,000 = $160,000<\/em><\/p>\n In this scenario, the flipper or We Buy Houses company would likely offer no more than $160,000 to ensure they make a profit while covering their costs.<\/p>\n Seeing the dramatic difference between an after-repair value of $300,000 and a cash offer price of only $160,000 may be hard to swallow. You might think, \u201cIf I could come up with the $50,000 and time to repair the home, I could sell it for $140,000 more.\u201d But there\u2019s the rub when you need to sell quickly.<\/p>\n After investing $50,000 and putting your plans on hold, you may only receive $90,000 more, and then you must weigh that amount against all other expenses related to your situation:<\/p>\n For some, the convenience of a fast, all-cash sale<\/a> outweighs the difference in final proceeds.<\/p>\n \u00bbLearn more: <\/strong>Read This Before You Sell Your House for Cash<\/a><\/em><\/p>\nWhat is the 70% rule in house flipping?<\/h2>\n
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70% rule example:<\/h3>\n
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