Knock, Knock! Whatever You Do, Don’t Answer the 'Door!'
I actually wrote this article last week (and didn't post it) after hearing an ad on the radio for a company who offers to purchase your home from you, allowing you to then find your next dream home and then will sell your home after you move and after repairs are made. I attended a meeting yesterday where I learned more about this too-good-to-be-true business model I realized that this business model is not only a concern of mine but, many others.
Does this sound too good to be true to you? Well, that’s because it is!
This is a business - think about it:
You request $________ for your home and are approached by one of THEIR representatives to confirm that your home is worth what you think it is. It is THEIR objective to purchase your home from you for as little as possible. So, their numbers will not match a trained real estate professional. Yes, they’ll help you purchase your new home, while also garnering the commission from the purchase.
Then, they sell the home that they purchased from you. Do you think they’re going to sell it for what they purchased it for from you? OF COURSE NOT! They are in this to MAKE MONEY, not to LOSE money. So, where do they make their profit? From YOU.
This is a real estate service that is run much like an auction house - buy low, sell high. At the end of the day, YOU, as the seller are the ones who WILL leave money on the table.
There is far more to selling your home than just exchanging cash. There are a multitude of ways to garner top dollar for your home. This is not one of them!
You as a buyer:
When you purchase a home from them, they will claim to be able to win bidding wars because their "Offer is strong since we are buying with cash." Well, cash is not always king and oftentimes when a seller sees a cash Offer, their emotional attachment to their home comes into play.
Wise sellers view savvy buyers as those who finance because they know that mortgage money is incredibly cheap and it's not a smart financial move to pay cash for real estate purchases. Typically when sellers receive a cash Offer, they think it's an investor - someone who will be renting out their homes. Remember that emotional attachment comment? Well, sellers very often want someone to love their home as they have. Cash buyers don't give them a sense that anyone will be caring for their home and be good neighbors to their dear neighbors.
Wise sellers often view cash buyers as inexperienced and unpredictable. Why would they pay cash when they could finance? Is there something wrong with their credit? What if they change their minds?
Bottom line - sellers often prefer a savvy buyer who has gone through the underwriting process and is going to love their home as they have.
You as a seller:
Points that are in the fine print that you simply MUST read on the Contract provided:
- Their fees are higher than my fees, which are full-price for full-service
- They pay THEIR contractors to repair items found on their inspection and declare that their average repair costs are $3,000. Remember, they are paying THEIR contractors, obviously premium charges because it’s rare to have a $3K inspection report. Not to mention, in NC, as a seller, you are selling with an as-is Contract and are not even REQUIRED to make repairs with a standard sale.
- PLEASE consult a full-time real estate agent (even if it’s not me!) before signing anything. I
- In NC, we have standard NC BAR forms/documents for our consumer to complete. This company provides their own - written FOR them (not you) and favoring them, NOT YOU. BIG RED FLAG!
What’s in it for me? Preserving the integrity of my profession by not having sellers ‘gypped’ by a business that’s in it only to take your money!
© Debe Maxwell | The Maxwell House Group | CharlotteBroker@icloud.com | Knock, Knock! Whatever You Do, Don’t Answer the 'Door!'