Trading In Your Home is not the same as Blue Book Value

By
Real Estate Agent with DFW FINE PROPERTIES 0506509

In reference to recent Featured Posts Endre Barath, Jr. Knock, knock who  and a follow-up blog post by Beth Atalay Real Estate the Amazon Was here is one more important thought to think about when selling a home:

by Patricia Feager 1/24/24

 

 

Two great posts by Endre Barath from Los Angeles and Beth Atalay from Florida were recently featured on ActiveRain and there is something to be learned from each of them. The premise for my post is to point out that trading your home (which I discovered is possible in parts of Texas) is not the same as how a licensed agent traditionally sells homes or trading your car. I can't think of a single consumer would be comfortable in losing a lot more than what your possession is actually worth or potentially more. Anyone who has had a car accident and worked with an Insurance Adjuster knows, the value what you think your car is worth and what the Insurance Company says it is worth is probably not going to make you happy.

 

As a refresher: "Kelley Blue Book," discloses: "The offer may not reflect the highest trade-in value or sales price available for your vehicle, and may be less than the current Kelley Blue Book Value," and also "Conditions Apply." 

 

When it comes to the most expensive investment in your lifetime, is it worth the risk to jump to conclusions that what some new concept, like trading in your house, which was implemented by a company you may never have heard of before and may not even be a referral from someone you know, like, and trust is a good idea? There are some things to seriously consider when making the decision to sell your home. Please weight the facts about selling the "Traditional Way" and a "Trade-In" way. 

 

Points to really, really, really think about when you see advertising their way versus the "Traditional Way" include:

 

  • Bidding wars are not traditional. It depends on the market. 2015, 2016, 2017 were hot years to sell in Texas and many buyers were faced with bidding wars. In 2018 the percentage of bidding wars was much less and nobody can predict what the market will be (either a buyer's market or seller's market) in 2019.

  • In the "Traditional Way" any repairs asked for by the buyers are negotiable between the parties to the contract. Sellers can accept, decline, or counter. Also, sellers get to say what they will repair and choose the contractor to make repairs. All contractor prices vary.

  • When a Non-Traditional company buys the seller's house and the seller is expected to pay for "unknown repair concessions" are you gullible or that trustworthy?

  • When a Non-Traditional company claims to "manage and pay for improvements to increase your new home's value then roll repairs into the new mortgage," you have a right to be skeptical and nervous about paying for repairs you know nothing about or have any control over.

  • If a Non-Traditional company "will pay the bills on one house and settle with you when your old house is sold," are you okay with that?

  • Sellers - if a Non-Traditional company "will manage and pay for repairs on your current house and settle with you at closing," what will you do if you don't have enough to pay for repairs and what if there is a dispute?

 

Talking to a local real estate agent and knowing who is the Broker has many advantages. One final thought to ponder, have you or anyone you know of ever been satisfied with a used car salesman or what the Blue Book value is in cash?

 

 

A WISE CONSUMER IS A CLASSIC --- Patricia Feager 

 

 

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Texas Law requires all license holders to provide the Information about Brokerage Services form to prospective clients.

Real Estate Commission Consumer Protection Notice  

 

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                                         Patricia Feager
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                                                        Email: patricia.feager@gmail.com

 

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Rainmaker
4,432,217
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I love the post. I hope it will be featured. Thank you for sharing 

Jan 24, 2019 07:46 AM #1
Rainmaker
2,036,397
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Fort Worth, TX
Selling Homes Changing Lives

Awe... thank you Gita Bantwal!

I hope you have good things come your way today and every day! 

Jan 24, 2019 07:48 AM #2
Rainmaker
781,369
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

Excellent points and a good way for consumers to consider when selling their largest asset.

Jan 24, 2019 08:51 AM #3
Rainmaker
1,501,974
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Hi Patricia Feager, MBA, CRS, GRI,MRP, excellent post, knowledge is power. I think we should all try our best to educate home sellers what's real and what's not. Trading a home is nothing like trading a car and shouldn't be treated that way. Any company claims otherwise is not telling the truth. Thank you for the mention. Have an awesome day!

Jan 24, 2019 09:09 AM #4
Rainmaker
1,234,022
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Patricia Feager, MBA, CRS, GRI,MRP - you have pointed out a lot of sketchy things to watch out for in a non-traditional company.  I hope others see this post. Very nice job!

Jan 24, 2019 11:55 AM #5
Rainmaker
819,946
Diana Zaccaro
Tropical Beachside brokered by eXp - Cocoa Beach, FL
"The Accidental Blogger" Cocoa Beach, Florida

Patricia, Great post on an important topic and very timely since it seems more of the non-traditonal companies are popping up every day.

Longevity counts and working with a local brokerage with a proven track record and REALTOR® is essentail to protect our customers best interests.

Carol Williams SCS if this is not featured (which it should be)!

Jan 24, 2019 01:14 PM #6
Ambassador
3,819,546
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Patricia first time I have heard of this.  Anything is possible, but I don't see this as anything that will take off.

Jan 24, 2019 03:05 PM #7
Rainmaker
3,209,023
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Patricia, thank you  for the mention and I am glad it inspired you to more research and a great post. I think the two companies I mentioned should have  a disclosure in bold print as to what you said for cars but modified for Real Estate: 

The offer may not reflect the highest trade-in value or sales price available for your vehicle, and may be less than the current Kelley Blue Book Value," and also "Conditions Apply." 

 

Jan 24, 2019 03:45 PM #8
Ambassador
2,299,411
1~Judi Barrett
Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

There are many aspects to the "trade in your home" concept that sellers need to weigh carefully and get good advice on.  Great post.

Jan 24, 2019 03:57 PM #9
Rainmaker
782,113
Norma J. Elkins
Elite Realty Group - Morristown, TN
Realtor - Elkins Home Selling Team

Oh my gracious I have never heard of trading in your home.  They may eventually try to bring about a "blue book" for homes.  Wow it seems risky and I don't think I would take the chance.  Thanks for sharing...some great informtion here.

Jan 25, 2019 05:27 AM #10
Rainmaker
1,523,197
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Patricia, your comparison to Blue Book Value is excellent and really puts it into perspective for sellers considering trading their home. I'm sure this new model will work for some sellers out of sheer convenience but, like with anything else, there's a cost for convenience. 

Jan 25, 2019 06:28 AM #11
Rainmaker
2,502,838
Rebecca Gaujot, Realtor®
Vision Quest Realty - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Patricia, another excellent post. Never thought about the comparison of Blue Book Value and Home Trading. I did have a buyer ask if we do house trading here. I said it depends if the WV seller wants a Tennessee home, or cash to make his own deciison.  I've never had this question asked and never heard of it happening here.

Jan 26, 2019 04:45 PM #12
Rainmaker
3,127,909
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Wonderful post, Patricia, and a great analogy to Blue Book. Too many home sellers don't realize until it's too late that one of those new business models cost them more than hiring a "traditional" professional.

Jan 27, 2019 10:10 AM #13
Rainmaker
1,445,709
Kat Palmiotti
406-270-3667 (MT), 914-419-0270 (NY), Broker in NY with Grand Lux Realty and in MT with (coming soon!) - Kalispell, MT
The House Kat

Great points! I was thinking the same thing about the non-traditional claims. I wouldn't want to buy a home, have someone else make some unnamed repairs, and then have to pay for them as part of my new mortgage. No thank you!

Jan 29, 2019 04:07 AM #14
Rainmaker
3,358,788
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Patricia - as you know, ActiveRain inspires many of us to think and with the multitude of posts there is truly a treaure's bounty waiting our discovery.

Jan 29, 2019 07:03 AM #15
Rainmaker
2,036,397
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Fort Worth, TX
Selling Homes Changing Lives

Michael Jacobs - Your selection of words is never cliche and always refreshing! 

Jan 29, 2019 07:19 AM #16
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