There are essentially four components that need to be taken into consideration when we make an offer
on your property.

We use the C-U-P-S methodology

C
Comparable values

U
Upgrade expense

P
Profit

S
Selling expense

C

Number one; C is comparable values, the expected top selling price.

What this means is that we look within half a mile of your home and
generally speaking what prices are houses like yours in the neighborhood are selling for. This determines
the comparable value.
Comparable value may not have anything to do with how much you owe the bank, or, what you think
your home is worth, or, even what people are willing to pay for your home.
Quite often people are willing to pay more than the comparable value of your home.
The challenge is that 90% of people need to get financed by the banks or mortgage lender. Banks and
Mortgage Lenders will only lend up to 80% of the appraised value of the home. So really, it has nothing to
do with how much you owe the bank or what you think your home is worth, but has everything to do
with what the appraiser thinks it’s worth.
Because the bank is only going to lend on the appraised value of the property.
So if you think your property is worth $380,000 you might even have someone willing to pay more than
that, the challenge is if the appraised value is only $340,000, that is the amount that the bank is willing to
lend on.
How does an appraiser establish the value your property?
Well since the mortgage meltdown appraisers have to follow strict rules and guideline, when appraising
a property. They look at similar if not identical property sales within your neighborhood typically within
a half a mile radius.
So the first thing we look at is comparable sales and values in your neighborhood.

U
Number 2 ; U is the cost of upgrading or giving your home a facelift.

Your home may seem perfect to you, but
to an outside they may think that the kitchen and bathrooms needs to be upgraded, with new appliances,
cabinets and fixtures, that there should be new paint, carpet and flooring. If there is an inspection there
may be certain repairs to the home. Of course all of this comes at an expense, typically it can be anywhere
from $60 to $80 per square foot based on condition of the property. Typically this expense is called
Upgrading, giving property a facelift or repair and renovation. In order to obtain top value this is a must
for an investor. To achieve top dollar as a relates to comparable values the property needs to be near
perfect.

How Mr. Checkbook arrives at a fair market offer for your home

Mr. Checkbook CRE8RAIN LLC, 222 Karen Avenue Las Vegas NV 89109 Copyright 2019

P

Number three; P is profit.

We are after all a business and we need to make a profit. Don’t get me wrong
we’re not greedy we are in business after all to make some money. Generally speaking around $15,000 to
$20,000.

S
Finally number four; S is for selling expense.

As you know there are expenses involved with selling the
property. Real estate agents’ commissions, closing costs & escrow fees, title insurance and don’t forget
state transfer tax. Generally speaking, a seller’s selling expenses involved in selling a property amounts
to about eight percent of the selling price.

You can see, when we make an offer on your property, we just don’t come up with a
number out of thin air!
The following need to be taken into consideration;

C
Comparable values
U
Upgrade expense
P
Profit
S
Selling expense

So deduct upgrading, profit, and selling expenses from the top Comparable selling price and we arrive at the Offer.

How we arrive at your offer.

Now you might not like the offer and that’s OK. I just wanted to let you know how we arrive at the
number. We will still part company as friends I just want you to keep an open mind.