Circumstances such as your job moving out of State could force you into the selling of your home. In situations like this, Contracting with a INSTANT ONLINE OFFER Company may be the best alternative if you are in need of a fast sell. This Concept of Investors and Companies offering to PAY CASH is not new. Many years before the internet, Private Investors and local Companies would offer homeowners cash for their home with the promise of a quick Close. Still today while driving around, I still see; "We Pay Cash For Homes" signs attached to telephone poles. What many homeowners do not know is, rarely do they offer fair market value for their home.
Let's look at the Instant Online Offer concept, it may surprise you how much Sellers stand to lose financially by accepting a lower offer. By contracting to sell with a Instant Online Offer Company Or Sole Investor, the Seller limits the Marketing of their home. With Real Estate Agencies, their home is marketed Nationwide on multiple public websites increasing exposer. Also, these Companies charge the Seller a service fee, premium fee, and Sellers have to absorb the repair costs that they charge. A recent study determined that sellers who sold their home solely to one Company or Investor, walked away with less vs the traditional route of marketing and selling through an Brokerage.
Let’s look at a comparison example between an Instant Online Offer transaction and a traditional home sale, hiring a Real Estate Agency. Example; The sellers invested $8,000 in repairs
to increase their home value by $13,000, bringing it to a market value of
$513,000. Homes are selling at or near list price in this area.
Traditional
First, consider the gain in value from the repairs. The sellers’
$8,000 expenditure gained them $13,000 in value, so that’s a $5,000 overall
gain for them ($13,000 -- $8,000 = $5,000). We add that gain as a profit
increase, giving them a market value of $513,000. The sellers accept an offer
of $510,000. The commission is 6%, and they paid 3% in closing costs.
Let’s do
the math!
$510,000 × 0.06 = $30,600
$510,000 × 0.03 = $15,300
($510,000 – $45,900) + $5,000 profit increase = $469,100
Instant Online Offer
To make things simpler, we’re going to set the service
fee at 6%. Note that some Instant Online Offer Companies fees may by as much as 8%.
We’re also going to assume a premium fee of 5%, although, again,
this could be more, depending on the Company. Because Companies or Sole Investors rarely (if
ever) offer market value, we’re going to set the offer price at $450,000—a 10%
decrease, which is realistic. We’ll leave the closing costs the same: 3%. We’ll
need to subtract the $5,000 gain from the repairs, as they don’t factor in.
$460,000 × 0.06 = $27,600
$460,000 × 0.05 = $23,000
$450,000 × 0.03 = $13,800
($460,000 – $64,400) – $5,000 = $390,600
That’s a difference of $78,500 in savings
If you are considering selling your home, compare my listing fees vs the QUICK SALE fees.
Walter Seuell
Direct. (678) 643-3322
Member Of Georgia MLS, Fayetteville Board of Realtors And National Association Of Realtors since 2002