Are Home Sellers under ATTACK?

By
Real Estate Broker/Owner with Godzyk Real Estate Services NH License 033394
https://activerain.com/droplet/5lml

I have so much to say this morning. Home Sellers are under attack. AT any one time the mega companies are coming up with ways to seperate you from your money. Today's lesson is what is building, what is growing and why you need to pay attention.

 

In life the old saying is "If it sounds too good to be true, it usually is." 

 

In the new and modern world though, people are willing to pay for convenience. BUT, how much is convenience worth in Real Estate?

 

Lets set the scene. A home owner wants to sell their house. They see an add for "a big company" who will buy their home. Charge them no fees and close when the seller wants. Easy, convenient and fast. Sound good? Yes but then here comes the "BUT." At what cost to the home owner does this convenience come?

 

Lets take a look at a proposed sale. The sellers home is worth $300,000 if listed and sold traditionally with a local full service agency. The seller will gross about $275,000 for th4 sale.

 

Lets say a couple of these "we buy your home for cash companies" make you cash offers. Lets say the best offer is 75% of what your home is worth. The seller will receive about $225,000 at closing. 

 

There are lots of whys and this is where you really have to pay attention.

 

1. WHY will the "cash buying company" only offer $225,000 WHEN IT IS WORTH $300,000? Well, the company is in it for the profit. A little paint, a little new flooring and they put the home back on the market for $300,000, or higher and keep the profit. 

 

2. WHY would a Home Seller not want to keep all the profit? Some home owners do not know what their home is worth. These companies do not work for them. They do not represent the seller and are not looking out for the sellers best interest.

 

3. WHAT if the home needs a lot of repairs? Home Owners whose homes need repair can sell their home traditionally as well. As a listing agent, I can explain the cost of repairs, what the value of the home is worth repaired and what it is worth as is. I can also search for cash buyers who inspect the home up front and make their offer with out contingencies. The seller can then compare ALL offers and not be forced to settle for anything lower than what they want or need. 

 

4. WHAT if the home is in foreclosure? I work with and have worked with many home owners whose homes have gone into foreclosure. There are many reasons such as a loss of a job, sickness, divorce or loss of a spouse. In the event a sale is the only way out, I can assist in finding a quick cash buyer to keep you from being foreclosed. Exploring all the options is a must to find out what is right for that owner.

 

5. BUT THERE OFFER IS CASH? I hate to tell you but at closing, every offer is closes with cash. When a buyer gets a mortgage, the bank pays cash to the closing company who settles the sale and dis-purses the funds. 

 

6. BUT THEIR OFFER HAS NO CONTINGENCIES? As with any offer, contingencies can mean a higher price for you. AND there is a way to limit or even eliminate that risk to you. Have pre approved buyers. Having buyers inspect the home prior to making an offer. There are many things that protect you the seller. 

 

7. BUT THEY WILL CLOSE WHEN I WANT? I hate to be the bearer of good news, but a home seller can close when ever they want no matter the buyer. It is part of the negotiating process. A buyer will let you know when they can close. Dates and times can be reviewed and one chosen that meets your needs. 

 

8. I DO NOT WANT TO PAY A COMMISSION. One of the biggest mistakes a home seller can make is have a haste for saving money that costs them money in the end.  Lets take a look at those numbers again. Sell your home for $300,000 paying a commission and getting near $275,000 at closing. >> OR << Not pay a commission, sell direct to that cash company for $225,000. You saved $25,000 in commission and really showed those agents. In the end you lost $50,000 you would have had if you sold for the full price. 

 

9. WHAT ARE THE HIDDEN FEES WHEN I LIST WITH YOU? There are NO hidden fees when a home seller lists with me. The commission is what is, as agreed, as in writing and as signed by all parties. It is up front and nothing is hidden. Most important is I sit and tell you what you get when you list.   

 

10. WHY WOULD ANY ONE THEN SELL TO ONE OF THESE BUYERS? Exactly my thought and question. As a full service local broker I sit with my seller. I tell them what the home is worth, what they should ask and what offers may come in at. I give them options, choices and real data. We can act fast, slow or at any pace in between that suits you as a seller. Full service, Full marketing and you get Full profit. 

 

The MOST IMPORTANT thing in real estate for me, is to provide great service. To stand out from the crowd by being there through each step of the buying or selling process. My message that I want to share in Real Estate, is that my philosophy is simple, to provide more personal and professional service to guide clients through each step of the buying or selling process. All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest.

 

To CONTACT Scott Godzyk please call 603.661.2121 or EMAIL: Sctprop@aol.com .

 

About the Author: Scott Godzyk is the Owner/Broker of the Godzyk Real Estate Services in Manchester NH. Proud to be locally owned and operated with 33 years of experience, Scott is a leading Agent for Listing and Selling Homes in this area.We are Full Time Agents ready to serve all of your Real Estate needs. Servicing Hillsborough, Rockingham, Merrimack and Belknap counties. 

 

    

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Mott Marvin Kornicki 11/17/2019 06:04 AM
Topic:
Home Selling
Location:
New Hampshire Hillsborough County Manchester
Groups:
Realtors®
Bananatude
Bartender, Make it a Double
Crap-Tacular
Old Farts Club

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Rainmaker
3,055,963
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

It is Edward Gilmartin but i would really like to reach that group of people who do not understand and make them understand all their options before they lose 30. 40 or 50k

Nov 12, 2019 05:01 AM #31
Rainmaker
3,055,963
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

They are not Kat Palmiotti and now to just try and reach more would be sellers before they fall for it

Nov 12, 2019 05:02 AM #32
Rainmaker
3,055,963
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

That is true Tom Bailey 

Nov 12, 2019 05:03 AM #33
Rainmaker
3,055,963
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I do not get it Jeff Dowler, CRS but am understanding better after i speak with those who undersold. sold too low that they did take the offer for convenience and nearly everyone said they did not know what the house was really worth.

Nov 12, 2019 05:04 AM #34
Rainmaker
3,055,963
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Thank you for the comment John Henry, Florida Architect 

Nov 12, 2019 05:04 AM #35
Rainmaker
501,169
Terry McCarley
REMAX Realty Team - Cape Coral FL - Cape Coral, FL
REALTOR, SRES, CDPE - Cape Coral, FL

Great information for sellers!!!  Congratulations on the much deserved featured post!!!

Nov 12, 2019 06:06 AM #36
Rainmaker
3,055,963
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Thank you Terry McCarley 

Nov 12, 2019 06:31 AM #37
Rainmaker
469,477
Scott Seaton Jr. Bourbonnais Kankakee IL Home Inspector
SLS Home Inspections-Bradley Bourbonnais Kankakee Manteno - Bourbonnais, IL
The Home Inspector With a Heart!

If only people realized what they were getting themselves into, they'd never do these deals in 100 years.

Nov 12, 2019 06:47 AM #38
Rainmaker
3,055,963
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

That is my hope Scott Seaton Jr. Bourbonnais Kankakee IL Home Inspector , but many dont know so here is my shot to reach them

Nov 12, 2019 07:17 AM #39
Ambassador
948,024
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Scott not only are homeowners under attact but us Realtors trying to do the right thing.

Nov 12, 2019 07:36 AM #40
Rainmaker
5,514,501
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Congratulations, Scott, on your feature recognition.

This is good reading for prospective home sellers.

Nov 12, 2019 07:40 AM #41
Rainmaker
2,487,555
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

The selling waters can be treacherous. Agents will sail you safely to the shores

Nov 12, 2019 09:05 AM #42
Rainmaker
816,600
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

Very well put as usual. Worthy feature. 

Nov 12, 2019 10:45 AM #43
Ambassador
3,971,092
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Well done- Sellers have so many "options" bombarding them that they can get trapped into a "money-saving" method that could end up costing them much more in the long run. 

Nov 12, 2019 11:25 AM #44
Rainmaker
3,221,734
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Excellent post, Scott... sellers really need to stop and think and do their numbers... and we should be helping them in this regard.

Nov 12, 2019 01:06 PM #45
Rainmaker
3,861,676
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good evening Scott,

Well positioned post to spell out to a seller what the options are when selling their home.  If you don't care about your bottom line than go for the quick and easy but it can cost you big bucks not going into your pocket! Congrats on the featured post..well deserved.

Nov 12, 2019 05:35 PM #46
Rainmaker
2,605,242
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Most markets across the country are still strong seller markets.  Those big companies, who want to buy your house, but at a highly discounted price, need to be sent packing.  On one of my last transactions I represented a seller, and we were presented an offer by an investor, who came in really low on an offer.  My seller was desperate to move, and accepted the offer as written, even when I expressed concern.  After all, the home had only been on the market a few days, and was getting activity.  To add insult to injury, the appraiser, who I highly suspect was too cozy with the lender and this investor group, came in extremely low on the appraisal.  I would have liked to have simply put the home back on the market and obtained a "real" buyer, but my seller was anxious to move on.  We closed, but it left an extremely bad taste in my mouth.

Buyers like the one you describe are only playing the numbers.  They lowball a number of homes, knowing that if they get just 1 in 4, they are doing alright.  But, for the seller of that one house they have obtained, they likely left a lot of profit on the table from the sale.

Nov 12, 2019 08:35 PM #47
Rainmaker
2,605,242
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

CONGRATULATIONS Scott, on having this blog FEATURED in the Old Farts Club group!  

Nov 12, 2019 08:38 PM #48
Rainmaker
72,990
Kris Collis, Associate Broker
Smart Way America Realty - East Stroudsburg, PA
Professional Results you Expect 570-507-7510

Scott, Great breakdown on the many limitations of the ibuyer model.  There is another iBuyer thread in today's Q&A that could benefit from a link to your post.

Nov 16, 2019 04:51 PM #49
Rainmaker
1,063,437
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

This is excellent information for all home owners thinking about selling their home.

Nov 18, 2019 08:10 PM #50
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