Home sellers beware!

 

Cathi Pospisil

Being a 30-Year Residential Real Estate Broker… I want to personally caution you to the latest trend, Instant Offer Companies: OfferPad, Opendoor, Zillow Instant Offer, Amazon and many more. Organized home flippers have been around a long time, but now the tech giants are in the game. This trend is being sold as, “The seller is in control, name your closing date and we’ll pay your moving cost. It’s hassle free, so convenient, you’ll never have to have showings, you get certainty and can purchase your replacement home now, etc.”… It’s going to cost you a big chunk of your investment!

I recently tested my own residence and was appalled at the low offer received for my recently-purchased Chandler home. Their offer was far below “Fair Market” value. I calculated about $75,000 to $100,000 loss for this so-called convenience. Of course, you’ll still have to deduct the customary realtor commissions, the buyer’s service fees, plus whatever Inspection items they deem are unacceptable to close, which you will be told to pay for these (yet to be determined) repairs from your final settlement check.

You might be thinking, “She’s a realtor afraid of new competition!” No, I’m afraid good people will lose too much of their largest life investment. I’ll admit some of these instant offer pluses sound very appealing to the inexperienced principal. Conversely, when I compare customary costs of a traditional realtor listing with the instant offer buyer scenario, I found that I would still net much more cash working with an experienced realtor than the instant offer trend. (Even if you accepted an instant offer contract, there is still no guarantee it will close. Also, this company will likely do a cosmetic upgrade, so they want to buy your home as cheap as they can to mark up more!) Keep in mind these offer companies would not be growing exponentially if it were not very profitable for them.

In summary, I would encourage the public to use experienced realtors® who work for you, the seller, who needs advice, protection and has your best interest and price in mind. Reminds me of the old saying… ”If it’s too good to be true… then it probably is!” Algorithms don’t sell properties; people do!

Email: cathi@myrebroker.com, blog: www.myrebroker.com, cell:  928-273-0538