Watch for home selling gimmicks, could mean less money in your pocket

Lot’s of ads these days on the radio and even television promising “We’ll buy your house for cash and close within two weeks!” Be careful, could mean less money in your pocket, sellers!

You may have heard this… “Don’t mess with the hassle of selling your home, buyers asking for repairs, paying buyers closing costs, preparing your home for sale, strangers coming through your home, could take months to sell… We’ll buy your house for cash and close within two weeks! You may have heard the commercials, and thought, wow, that does sound better to just SELL without all the hassles. But you could be opening the door to LESS money in your pocket!

Now, I’m not going to tell you that selling your home is easy, but a little trouble could mean more money in your pocket. Let me show you what those hassles mean to your bottom line.

One of the “advantages” they claim to selling directly to them is “Zero days on Market.” Is this really an advantage though? Wouldn’t you want as many potential buyers as possible to see your home? Market Value is determined by potential buyers, and you could be missing out on multiple offers that could bring more money to your pocket.

Here is a actual comparison of a property the Jennifer Sanchez Team just SOLD compared to the company advertising this service. This was an actual quote shared with us from our client.

 

Un-named Home Buying Service            Jennifer Sanchez Team SOLD

 

$221,000 Cash Offer                     $225,000 Conventional loan

2.5% Service Charge                              3% Listing Broker

3% Buyer Broker Charge                        3% Buyer Broker

1.5% Holding Charge                         $4,898 Buyer’s Closing Cost

3.45% Market Risk                               $425 Home Warranty

1-3% Buyers Closing cost                        $1832 Title / Escrow Fees

1% Title / Escrow Fees                            $450 HOA Disclosure Fees

$450 HOA Disclosure Fees                      $180.00 Repair costs

** Repair cost TBD

_____________________                     __________________________

$195,253 Net Cash Value                               $203,715 Net Offer, which is +$8462.00 more money in our Seller’s pocket

Now, our clients did not receive an offer instantly, it took 14 days on the market and they received TWO offers which gave them the leverage to have the upper hand in the negotiations and the peace of mind knowing they did not give their house away, but rather they sold it for the most money the market would bring.

Now I don’t want to say that there are no hassles involved with selling your home; making beds, keeping things picked up, leaving your home for showings, decluttering and packing up to get the the home ready for the market. As a Listing Specialist, I always say, your going to pack your stuff to move anyway, decluttering is just a head start. And if your home is staged and ready for market, it will sell quickly and you wont have to worry about showings for very long. Isn’t the most amount of money in your pocket whats most important?

Be cautious of these claims and programs advertised. There is a reason these services pop up, and also a reason they don’t seem to stick around very long. It’s happened for years and it will always happen. Each market brings another creative approach and business opportunity. But hiring a professional real estate agent in our opinion is the only way to get proper exposure and get the most for your home. Don’t be taken advantage of by a middle-man.

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2 Responses to “Watch for home selling gimmicks, could mean less money in your pocket”

  1. Thanks for the comment, Andrew. That is actually a very typical case, not just a best case that we decided to show. The fact is, these companies make money by being the middle-man, nothing necessarily wrong with that, it’s just the way it works. A homeowner will ALWAYS make less going that route, or these companies would not have a way to make money. We simply advocate homeowners to look at their options. If a home is priced right, marketed correctly and in good showing condition the homeowner will do better going on the market. And the average days on market is not anywhere near 70 days in the metro area, again another question that the homeowner should ask and consider before determining if taking less would be in their best interest to save time.

  2. Andrew Wilkins says:

    The hassle-free home sale companies need to make money somehow, though it seems like you picked a best-case for your customer where there was a fast sale and multiple offers.

    It’s great when that happens and everyone wins, but we know that’s not every client’s story. Fallthroughs and cancelled listings happen more than we’d want to admit to our clients, and the average days on market is higher than 70.

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