What seems like a convenient and easy solution masks some serious drawbacks.
- Instant home purchase offers aren’t designed to benefit the home seller; they are designed to benefit the investor or company.
- Sellers are positioned to get low offers and still pay fees at or above an agent’s fees.
Sue stood in her parents’ San Diego garage, overwhelmed by the years of stuff they’d accumulated and the volume of repairs needed. Add to that the fact that she lived out of state. This sale wasn’t going to be easy.
It was certainly tempting to entertain an instant offer to buy the house and walk away from all of it. But her parents needed every dollar they could get out of the house sale. So, they found an agent and the home sold to a cash buyer for full price.
Like Sue, many homeowners and property custodians find themselves in a difficult situation.
Time-sensitive situations, such as job loss or homes in disrepair because of finances or health, create a desire to quickly dispose of real estate. Companies such as Opendoor and Zillow are making it very simple to get a valuation and accept an offer online.
But what seems like a convenient and easy solution masks some serious drawbacks for the home seller and the real estate market.
Let’s look at seven reasons to pass on the instant home purchase offer:
- Inaccurate valuations
- Low Offers
- The fees add up
- Most markets don’t need this ‘service”
- Reducing inventory raises prices