Why are people giving away their homes?
In our fast paced society we like our drive through hamburgers fast, and our pizza delivered. We have become obsessed with instant gratification. All businesses have had to make shifts and adjustments over the years to meet clients ever changing wants and needs. The real estate industry adapted the way we did business in the late 1990's when Realtor.com took off and individuals could see MLS listings for the first time. The latest trend that is shifting the real estate market is the instant offer. Many home buying investors are aggressively flooding the local market. I think everyone has seen a commercial or heard of We Buy Ugly Houses or received mail from Opendoor or OfferPad. There are many investment groups willing to give a homeowner a quick cash offer. But with convenience comes a price...EQUITY! Money in the bank or their pocket, not yours. The investors offer is whats best for them, not the home owner. So who would leave money on the table? Why would I accept less than my house is worth? It comes down to convenience and timing. If a property is inherited or in some divorce situations its easier to get a quick check and be done with it. Nobody in their right mind would think an investor is paying top dollar for a property so they can lose money on it. The economic impact of these quick lowball sales can also affect the neighborhood values, as appraisers are starting to have to use theses low sales in valuing homes for a bank loan. You would always hope your neighbors would be trying for top dollar on their homes as home sales affect everyone in the neighborhood. As realtors we are always trying to educate the community and promote a strong real estate economy. In our business model we have now added an instant offer option on our website. Do we suggest that it would be top dollar, absolutely not, but we want our clients to have all the options available to them in one stop.
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