How We Buy Houses Fast

Reasons We Buy Houses in the Johannesburg and the Surrounding Areas

The main reason we buy homes in Gauteng is so that you can remove yourself from the situation you find yourself in. We’re here to help you sell your house fast so that you can move on!

We understand what it’s like to face a situation that drains your energy. We’ve had rental houses ourselves that caused endless frustration and stress. We were more than happy to sell those houses to other investors just so that we could get our lives back and focus our energy on more positive things.

We buy houses so that you have an option to quickly sell a house and receive cash. This may open possibilities for you that you can get excited about. We want to be able to make you a no-obligation cash offer so that you have an out.

Many people think that you have to be facing a dire situation in order to sell a house to cash home buyer. This simply isn’t true.

We’ve bought the majority of houses from people that just didn’t want to deal with the hassle of selling their house the conventional way. The conventional way of selling your house yourself ‘For Sale By Owner’ or through a real estate agent isn’t a good fit for people with houses needing repairs. It’s also not a good fit for people that don’t like the idea of having to show their homes to dozens or even hundreds of strangers, accept offers with contingencies, and hope it all closes and works out.

People want a ‘for sure thing’. They want to know their house is sold and to be absolutely certain they can be free of their situation. We provide all of those things when we agree to buy your house.

How Do I Sell My House Fast For Cash?

We Offer Cash For Your House Fast. Here’s How…

By eliminating the middle person, (agents, banks, etc.) and by simply paying cash we can significantly uncomplicate things. We can truly make buying your house easy as 1,2,3.

Sell Your House The Easy Way.

This explains the steps involved, but what exactly goes on behind the scenes?

To sell your home fast for cash in Johannesburg, we encourage you to educate yourself before you decide what your best options are.

What follows next is a well thought out, fully detailed explanation of how the entire house buying process works from beginning to end. Please read through this as reading this article will make you the expert on the topic.

Cash For Your House…The Details

So You Want To Sell Your House Fast For Cash!

… And Still Want A Fantastic Offer!

… And Still Want A Fantastic Offer!

“We Buy Houses” companies will often try to give you the lowest possible offer. This doesn’t make any sense to us. We spend time and effort doing your home analysis so we can get you cash for your home in Johannesburg. We spend time and money driving to properties all over Johannesburg. All these services are 100% FREE to you! No one will accept a low offer and we would have spent so much time, money and effort for nothing…It’s In Our Best Interest To Give You Our Highest Possible Offer.

Therefore,

Sproud (Pty) Ltd stays in business by getting offers accepted, and the only way to do that is to give offers you’ll be happy with! We truly do our best to give you the highest possible offer we can give.

Our Offers Are Based On Your Home’s “After Repair Market Value”!

This simply means, we look at what the value of your home would be, completely fixed up. Based on this value we will formulate your offer!

How Exactly?

Well, imagine you have a house that you want to sell…

Now, also imagine your neighbour, has the exact same, identical house as yours, except for a few upgrades he made… say, he added granite counter tops, removed wallpaper, applied a fresh coat of paint, put a new roof on, and put hardwood floors in.

Well, we know, that If we make the same upgrades to your house (AFTER we buy it from you of course), bringing the house to a very similar condition as your neighbor’s house, we would also be able to sell it for R 900K.

So,

We know the Market value of your house if we fixed it up (in this case R 900K), and we know the cost of repairs/upgrades. We can now make an offer that works for us. If this offer also works for you, great we close and you get your money at closing! As you can see, we make offers based on the market numbers, not based on how desperate you may or may not be to sell.

The Offer:

All you math lovers out there, will appreciate this section. We value honesty and transparency. We have no issues sharing with you how exactly we formulate our offers.

[Your Offer] = [After Repair Value] – [Cost Of Repairs] – [Our Selling Costs] – [Our Minimum Profit]

But in order for you to understand this we need to define some terms.

After Repair Value (ARV): This is what the market value of your house will be AFTER we buy and renovate the house. Yup we are just like your favorite HGTV flipping show.

Cost Of Repairs (COR): This is what our cost will be fixing/updating the house AFTER we purchase it from you.

Our Selling Costs: Although we buy houses without involving agents, we on the other hand, have to use an agent to sell that house again AFTER we have purchased it from you and fixed it up. So we have to pay agent fees, closing costs, taxes, holding costs etc. These are all the fees you do NOT have to pay, if you sell your house directly to us ;). This is usually 10% all together of selling price. (Our Selling Cost = 10% x ARV)

Our Minimum Profit: Yeah, this IS a business after all, and we wouldn’t be able to stay in business, buy more houses, pay contractors, plumbers etc, if we didn’t make some sort of profit. However, we keep this to an absolute minimum so we can present you with the highest possible offer. See, our business model is structured around making many deals with a little profit per deal, and not a few deals with a huge profit per deal. This benefits all.

English Please!!

So what does this formula mean in plain English? Simply this:

The market value of the house (after we fix it up), minus ALL our costs fixing it up (including our profits), will be the offer. How simple is THAT! Congrats, now you are an expert at this! But want to be sure you understand it?

A Real Case Study

Let’s say this is your house in its current condition:

Not bad right? OK it could use a bit of sweet tender loving but not too shabby. It is just outdated…

Now remember, your neighbor with the exact same house as yours? He got a new roof, updated the kitchen and bathrooms, put granite in, removed carpets and put in hardwood flooring? Well, this is what his house looks like after he did the changes:

Well, no wonder he sold it for R900K, it is gorgeous! WOW!

In order for us to also be able to sell your house (well, our house after we buy it from you) for R900K, we need to bring your house to the same condition as the house of your neighbor, or better, so that we can also sell it for R900K!

Why?

Because we will not be able to sell the house in this current state for R900K when all the other houses that are currently for sale in your area look as gorgeous as your neighbor’s. Would you as a buyer be interested in buying a house in lesser condition for R900K when a much nicer house sells for the same price? No, of course not!

So an obvious next question you’d ask, would be:

OK, if the house after it is completely fixed and updated would sell for R900K, for how much would it sell as is?

Sell My House In Jozi For Cash Or Should I List It As Is?

Let’s say you contacted an agent and she/he says, that your house as is, in its current condition is worth R850K. Now you have contacted the most awesome, friendly, amazing, highest ranking house buyers in all of Gauteng… (us.. duhhh)! If you have not,… well, shame on you, you really should!

We would come in, with our contractor and if we can, our agent. (We bring our contractor and our agent to the walkthrough, so that our agent tells our contractor what needs to be fixed (as he/she knows what buyers are currently looking for) and what does not need to be fixed (to save on the cost of repairs)).

Our agent: tells us, that we need granite countertops, because the neighbor across the fence that sold his house for R900K, also has granite, as well as hardwood floors, removing wallpaper, installing new appliances etc.

Our contractor: gives us an accurate COR (Cost Of Repairs). See, we know exactly what we will do to the house the second we are done with the walk-through and we have already completed the flip in our imagination and we know exactly what all the numbers will look like.

The more accurate these numbers the more accurate (and the higher) your offer will be! Let’s say our contractor gives us a cost of repairs of R140K.

Now We Are Ready To Make You An offer!

Here are the numbers:

The more accurate these numbers the more accurate (and the higher) your offer will be! Let’s say our contractor gives us a cost of repairs of R140K.

Now We Are Ready To Make You An offer!

Here are the numbers:

As-Is Value = R850K

ARV (After Repair Value) = R900K

COR (Cost Of Repairs) = R140K

Our Selling Cost = 10% x R900K = R90K

Let’s say Our Minimum Profit For This Purchase = R70K

[Your Offer] = [ARV] – [COR] – [Our Selling Costs] – [Our Minimum Profit]

Your Offer = R900K – R140K – R90K – R70K = R600K

Your Offer = R600K

As you can see, we play by the numbers. We do not make offers based on how desperate you may or may not be. We don’t base offers on some percentage of the After Repaired Value (that is ludicrous). We simply add the numbers up trying our best to give you the highest possible offer we can make you, to make sure you will be happy, and thus to make sure the contract will be signed, so that we can get our next flip going! Makes sense doesn’t it