If you want to sell your home without having to get it ready to sell, put it on the market, having showings, open houses, negotiating or making repairs…the convenience will cost you a significant portion of your built-up equity.
There are for-profit organizations out there called iBuyers. These companies buy homes from sellers. They expect to profit from sellers who need to sell quickly and are willing to discount their proceeds as an alternative to using the conventional method of selling a home.
These companies run ads that generally state that you can receive a cash offer in a few minutes after you put your address online. The discount can be between 10 to 18 percent compared to normal selling costs from 6 to 9 percent. If you have $100,000 in equity it could cost you as much as $10,000.
Having an accepted offer is not the end-all, be-all. There can be contingencies in the contract allowing the company to do an inspection of your home for condition and then reassess the offer to possibly make even more deductions. If you don’t accept the contingencies, the buyer can withdraw from the contract without any penalty.
On the surface, this appears to be friendly and accommodating but it can turn into an adversarial situation. On one side the seller wants to maximize their proceeds and on the other, the buyer wants to pay as little as possible.
If we compare this to working with a real estate professional who is acting as your agent. They are required to put your interest above their own. They have a fiduciary duty of care, integrity, honesty, and loyalty in their dealings with you. Other duties include confidentiality, disclosure, obedience, and accounting to the seller.
In a more traditional example, your agent will provide you with the facts of what homes have sold for in your area and give their recommendations and opinion on what the most likely sales price for your home will be. Based on different sales possibilities, your agent will provide you with an estimate of the sales expenses.
Your agent will advise you on what work needs to be done prior to putting your home on the market and give you an estimate of how long it will be on the market. Give you staging advice or set you up with a professional stager so your home will show its best. With national housing inventories still at record lows, you may be surprised at how fast your home will sell.
You made an investment in your home in cash and maintenance. You are entitled to maximize your proceeds because you bought instead of renting. Quick offer convenience has a cost to it. You need to compare both alternatives to see which one benefits you the most based on your individual situation.
For more information, I can provide you with my FREE Home Selling Guide.
Want Some Insider Information on Fairfax VA homes for sale? Get a FREE Market Snapshot Report of Your Northern Virginia Home’s Value, or Search All Northern Virginia Homes For Sale. Put that data you need at the tips of your fingers!