Several companies advertise they will buy your home, without the stress and inconvenience of you having to show it to buyers. They will make you a cash offer without even seeing your home. That sounds too good to be true!
As with most marketing ploys, there is a catch. While these companies DO buy homes, they only do it when they are going to make money by doing so. It is expensive to buy and flip homes, so companies don’t do it simply to give sellers an easier way out.
There is truth in the saying…
if it sounds too good to be true, it probably is!
There is always a catch, usually in the fine print. It is common for the seller in these cases to give up $15,000 to $30,000 or more in profit with these approaches.
In the case of an offer for your home, the fine print discloses they will do a home inspection and expect a repair credit for anything not up to code, or in need of repair, including any non-standard paint or flooring colors or carpet that is showing visual wear patterns. So while the easy initial offer may seem enticing, it can be several more weeks before the real cost to sell is known.
A review of recent purchases by these companies shows that sellers consistently come out worse financially. The bottom line is a few weeks marketing time showing your home to real buyers who pay full market value can be worth $15,000-$30,000 or more to you.
Of course, all results vary and there are no guarantees with any approach, but here are five local recent examples in our metro Atlanta market, taken directly from FMLS sales reports:
Roswell Seller Gave Up $28,900.
Company paid seller $271,000.
Company resold it for $299,900.
Marietta Seller Gave Up $24,000.
Company paid seller $80,000.
Company resold it for $104,000.
Acworth Seller Gave Up $19,750.
Company paid seller $122,000.
Company resold it for $141,750.
Woodstock Seller Gave up $16,500.
Company paid seller $315,000.
Company resold it for $331,500.
Cartersville Seller Gave Up $26,900.
Company paid seller $336,000.
Company resold it for $362,900.
On top of buying homes for under full market value, one company’s website calculator that shows a 1.5% fee is deducted from the seller’s price in addition to broker fees being deducted. Another company “settles” at closing by taking into account their additional carrying costs and repair costs. So these examples end up with a significant loss to the seller due to eliminating reasonable marketing time to get top dollar.
The company is using this business model for their own financial gain. There is nothing wrong with them making a profit, but we prefer to see the local homeowner get their full equity and profit from their home, not give it away to a large corporation.
Ask For A Second Opinion
Contact us for a consultation or second opinion to compare how quality marketing can increase your profit while still getting the job done quickly for you.
Path & Post consistently sells homes for 97%-99% of list price within 20-30 days on the market. Getting you top dollar in a short amount of time is usually worth a few showings!
We have buyers actively searching on pathpost.com. Most months, over 20,000+ properties are viewed on our site and over 400+ new buyers registered to work with us.
We will guide you every step of the way, representing only your best interests. Don’t just take our word for it. See what others say about our work: Path & Post Zillow Reviews