Does a 'quick cash closing' really work for sellers?
There's a few different things to call these companies that come in & buy your home for cash & you happily run away with all the money. Most firms call themselves I-Buyers & they were recently invented to save buyers from the 'horrors' of a real estate transaction with a regular type real estate agent.
SAVE!!! SAVE!!! SAVE!!!
1) All that time & aggravation waiting for agents & buyers
2) Repairs that might need to be done & you'd rather be at the beach with a mai-tai
3) Really quick cash, usually within 48 hours
One point that these companies forget to tell you when you read 'how easy' it is going to be is that's it's going to cost you BIG TIME. Each home obviously will be different but it's really going to be expensive if you ask me. I've been doing this a very long time & I just can't figure out what percentage 'off' the list price these I-Buyer firms decide on.
Who works for the owner in this transaction? No one. The seller is on their own with these negotiations & with the price. No one there to guide you because the I-Buyer company rep wants to get your home for the lowest price possible.
All I can really do is help my sellers with the numbers that I know. Here are a few examples that I have found recently closed to make my point -
House A - July 2019 Close with Owner at $154,875 (this is what the original owner got)
October 2019 Closes from I-Buyer Company at $291,500
With the magic of my calculator I see that's a HUGE $136,625 difference.
That is a lot of money, a lot of commission or service fees, a lot of repairs on House A. When going through the MLS photos, the house was nicely repainted, recarpeted & neutralized. Was the kitchen remodeled for that price? NOPE How about a bathroom remodel? NOPE Lots of things that should have been done but weren't for that price. The owner got $154,875.
House B - October 2019 Close with Owner at $183,000
November 2019 I-Buyer closes with new buyer for $264,900
With the magic of my calculator I see that's $81,900 difference. I think that's a pretty large chunk of money.
All the particulars of House B was the same as House A. Nicely done interior with no remodels that I could see.
I believe that it would be well worth your time for those sums of money above. Yes, time is money but then throwing away your money for that time is just craziness. Will it be harder or more inconvenient for the larger sums? Yes, I guess it would take more time & more planning but it's always worth the effort for my clients.
I honestly expect my sellers to get the most amount of money possible when they sell their home. I also want you to keep your eyes wide open when some of these companies might be recommended during a tough financial situation. There are plenty of life events that this might seem like a good idea. Just think it over carefully.
If you have any questions, please feel free to give me a call. I would welcome helping you make more money.