You’ve probably heard of those instant offers programs whereby a company offers to buy your home instantly for cash. Closing takes place in a short period of time. No getting the house ready to show, no hassles with showings, no hassles period. Sounds great, doesn’t it? What do these instant offers programs cost sellers?
Except there’s one catch. They don’t offer you full market value. Not even close. A recent study showed that the typical instant offers programs cost sellers around 15% equity. That’s a big price to pay, and costs much more than selling your home even after paying a real estate agent commission.
Going For Top Dollar
Most sellers are afraid they may have to drop their price if their home doesn’t sell. Homes in SW Florida typically sell for around 95% of list price. Some much more than that depending on the price range. What this is telling us is those sellers were about 5% over the market, and when they came down to where the market was, their home sold.
Imagine selling 15% below that number. You don’t have to imagine because it’s reality. These instant offers companies don’t tell you that. They also don’t tell you the final price when they make their original offer.
To date these national companies haven’t come to SW Florida. We have spoken with people who have used them in other markets, and they’re not happy. First, it starts with an offer, typically 7-10% below fair market value. Seller accepts the offer, and inspections are setup. Then the instant offers company amends the offer to account for major renovations needed. That could total $30,000 or more depending on inspection results.
If the seller’s biggest fear was having to reduce asking price, it was just realized by accepting an instant offer. The only difference is the process sped up, and the reduction was severe. Had the seller priced their home upfront to meet today’s market, they could have sold quickly and put much more money in their pocket.
These sellers’ biggest regret was using an instant offers company. Sometimes the fear of the process overrides the financial loss, until the financial loss becomes real. We can help with this.
In the near future we’ll bring an iBuyer program to SW Florida. You’ll be given the choice. Take the instant offer or go for top dollar with us. Logically most will choose the top dollar, but we’ll have the choice for those looking for the instant sale.
If you’re in a situation where you need to sell fast and you’re fearful of the process, a simple sit-down meeting can answer many of your questions. We can look at what fair market would look like and discuss insightful ways to get your home sold fast, and not for bottom dollar.
Anyone can give away a home. That’s easy, and costly. We can help you sell fast and put more money in your pocket. We’ve been working on a few solutions to help sellers that are exciting.
We have an instant repair bid program. Basically, we take the home inspection and upload into our system. Within 48 hours we have bids to repair anything on the report. This makes it easy for buyers and sellers because almost instantly they know the price of the repairs.
Many times, deals are lost because a buyer believes the repair cost is just too expensive. By having instant bids, they know the cost upfront. Often, the repair cost isn’t as bad as they think. Sometimes sellers blow up because they believe the repairs the buyer is asking for will add up too. Having an instant repair bid shows the seller the true cost of the repair. Perhaps buyer is asking too much, and now the seller will know.
The instant repair bid is a nice tool which can give both buyer and seller peace of mind. It’s also much less expensive than giving your house away to a greedy iBuyer program.
Thinking of Selling?
If you’re looking to sell, talk to Brett or Sande at the Ellis Team at Keller Williams Realty. 239-489-4042 Ext 4 We can show you how to net more at closing and make the process easier for you. Don’t let fear of the process let these companies take advantage of you. A solution is often just a face to face conversation away. Or visit www.SWFLhomevalues.com for a quick idea of your home’s value. If you like that price, we can talk further. If you think it’s off, we can sit down and discuss that too, because it could be.
See last week’s article “Wall Street Fear May Spark Main Street Opportunity”
Good luck and Happy Selling!