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Instant Home Purchase Offers

Instant Home Purchase Offers

Let’s imagine you need to sell your home.  You’re probably overwhelmed with all the things that need to get done. When will I finish the repairs and deferred maintenance I’ve been putting off? Which real estate company should I call? When should I start boxing everything up? What happens if it doesn’t sell in time? How am I going to close on my new home if you can’t sell this one?

Then, one day, you’re scrolling through social media and see an ad for a company that will give you an instant offer on your home. You don’t have to clean, make repairs, or have showings. You get to pick your closing date, some as soon as only a few days away.

“Could it be too good to be true?” you ask yourself as you click the submit button.

The answer. Maybe.

And while the benefits of not having to prepare your home for sale are big, that doesn’t mean you get off scot-free on the repairs you’ve been putting off. What you may not know is that the initial offer submitted to you is dependent on support from a Home Evaluator that will be scheduling an inspection with you. Just like any buyer, iBuyers want to make sure they are getting what they paid for. Failure to disclose the leak under the kitchen sink, the loose fence boards, or the kid’s artwork colored on the walls before the Evaluator coming out means that you will most likely get a new and final offer that has considered that work. Add to that, this offer may come months after the initial offer, meaning you may no longer have time to sell your house the traditional way. Remember, these companies are going to turn around and try to resell your home for top dollar. 

Companies that offer instant cash offers for homes, or “iBuyers,” have become a big thing in today’s market. As a home seller, they seem like the answer to all of your worrying, but there’s a catch: these companies aren’t buying homes and living in them. They turn around almost immediately and resell them. The only way for this model to be profitable for these companies then is to purchase homes BELOW market value.

What’s more, these companies have their evaluation and estimating down to a carefully calculated algorithm- there’s no room for negotiations in that algorithm. Your offer is take-it or leave-it. As a seller, the initial elation may give way to frustration with this no-nonsense approach to a home you are emotionally attached to. Plus, you still have fees associated with the closing, the same as with a traditional sale. If you didn’t consider those fees when you accepted an offer that barely covered your mortgage payoff, you could find yourself in a tough spot.

But, like anything, iBuyers serve a purpose and can meet a specific need for people. Have you recently experienced a death in the family and have to now sell a home quickly? Is selling your home part of a divorce settlement? Maybe you’ve been offered an amazing job relocation opportunity that you don’t want to miss. When your motivation for selling is driven by urgency, iBuyers can be the perfect solution. Sure, you may get less than selling on the traditional market, but at least the sale met your time table.

Before you click that submit button, here’s what we recommend.

  • Determine your motivation for selling. If you must sell immediately, maybe an instant offer is what you need. But, if you’re willing to take a lower price, why not put it on the traditional market at a competitive price that will attract lots of buyers, potentially giving you more money at the end of the day.
  • Calculate your expenses. Knowing your mortgage payoff amount and your expected seller costs will not only help you evaluate offers if you take the traditional selling path, but will help you determine if that below-market value offer is just too low.
  • Talk to your real estate agent. You may not realize that you can still be represented by your agent, even in an instant offer transaction. We suggest that you never hit that button without talking to an agent first. An agent will run a market analysis for your home so you will know just how far under market value that iBuyer offer is, and we’ll provide you with a Seller Net Sheet that will break down your expenses. And if you decide that an iBuyer is the solution for you, your agent will represent your best interests up until the closing day. You’ll be paying those selling fees anyway, why not give yourself some peace of mind along the way?

 

If you need to sell your home quickly and have been thinking about getting an instant offer on your home, call us first. Let’s talk about your options so you can make an informed decision.

 

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