Is It A Good Idea For Me To Sell My Home To A Company And Not An Individual
by: Stan Jones National Real Estate Coach CEO The Stan Jones Team
Selling a home is stressful. It's likely the biggest investment of a person's life. Physically moving puts a toil on a person's mind, body, and soul. Ripping up a person's 'nest' that is layered with memory after memory can be down right overwhelming. Yet, with this selling a home can be incredibly rewarding as well. Moving to a different area, neighborhood, home style is a breath of fresh air. New friends in the community. New layout to decorate and make it yours.
Selling a home can be accomplished in multiple ways. Doing it along by FSBO and hiring a realtor are the most popular. 93% of homes were sold by a professional real estate agent in 2017.
Now there is a new player in town. The so called iBuyer. An iBuyer is a company who buys your home and allows a seller to close and move on their timing. Wow! Now that is nice! As a seller you get to control the timing. In tradition real estate that is not probable.
The question is "At what cost does a seller pay for the convenience of choosing your own closing day/time?"
Take a look at the Forbes article about the iBuyer companies (90% choose not to go with the iBuyer... that's 9 out of 10) https://www.forbes.com/sites/forbesnycouncil/2018/06/05/ibuyers-is-the-convenience-worth-the-cost/#702c5cd957dc
For as long as real estate has been selling there have been companies or individuals who would buy your home as an investment. Their goal is to buy the home and then fix it up and either flip it or lease it out.
Why is it that now it's appealing to a seller to sell to an investment company?
The appeal lies in the convenience. And sellers to date are paying a big price tag for this convenience. In studies across the country sellers are willing to lose $10,000 to over $40,000 in their own profits just to have the convenience of moving when they want to move.
In our local studies and first hand meetings with sellers we have personally witnessed iBuyer companies purchase a home. Here are a couple case studies.
CASE STUDY 1 Dacula, GA A seller contacted the Stan Jones Team and shared they planned to sell to an iBuyer company. Their neighbor had done it a couple months prior and found it be very convenient. iBuyer offered $198,000 minus 6% marketing/admin fee and $4,000 repair cost. Net to seller = $182,120
After evaluating and a conversation with the seller the Stan Jones Team listed the home at $215,000. Received offer within 48 hours. Sold at $212,000. Net to seller was $196,080. In this Case Study The Stan Jones Team made the seller an additional $13,960
Case Study #2 Hoschton, GA Seller/Buyer contacted the Stan Jones Team to share their great disappointment using an iBuyer type company. (We will call the Seller JOHNSON family). The Johnson family was selling and then buying a home. The iBuyer company has a service that buys homes for families. The Johnson family thought this was a great idea. So they allowed the company to purchase the home for the Johnson family and the Johnson family would pay interest only payments until their current home sold. Following the purcahse the iBuyer company placed the Johnson's home they wanted to sell on the market. The iBuyer company listed the home for $315,000. The home sold and the Johnson family's net after fees and closing costs was $287,280. Initially, it looks like a good deal. After diving in and breaking down the numbers it was an incredible loss to the Johnson family. #1 - The Johnson family's interest only payment was $4,100 per month. The market rate for an interest only loan for the purchase price should have been around $2,100. The Johnson family paid an additional $2,000 per month for four months ($8,000 additional) #2 - The Johnson's family placed their home on the market at the advice of the iBuyer company, at $315,000. The home sold in one day for $312,000 and $6,000 seller paid closing costs. After a little research we realized there were multiple homes at the same style that sold in the past few months for over $335,000 each. And the seller paid an average $3,200 in seller paid closing costs. When selling at average market value approx $335,000 Seller's net would have been $312,000 after any real estate fees and average closing costs paid by seller. In this Case Study That's a loss of $19,720 on the sale of their home and $8,000 in additional payments for the interest only loan $32,720
The great thing for sellers is you are in control. You control who you choose to help you sell a home. At a minimum If convenience is a factor for you then speak with a professional realtor before you go under contract with an iBuyer (investment company). Remember, their company is to make money. And their money comes out of your pocket.
If convenience is your biggest factor then know that The Stan Jones Team offers multiple avenues to sell a home.
* We have a Guaranteed Sold program. We will sell it Guaranteed or we will sell it for FREE.
* The Stan Jones Team will also present an offer to purchase your home.
* We have a traditional sales program to sell your home on the retail market for top dollar.
Our company also specializes in helping families who need to sell and then buy a home. We have 20+ years experience in navigating a very smooth and easy system to help you move from one home to another...without having to carry two mortgages. Call the Stan jones Team today for a FREE consultation to learn more about our convenient steps to selling and buying a home. Our team is ready to serve you!. 678.647.6441.
Is convenience your biggest factor in selling your home? Do you want to get top dollar for the sale of your home? Are you selling and then buying a home and want to navigate it easily? Do you want to sell your home with little hastle? If you answer yes to any of these, call The Stan Jones Team today. We will help with a smooth seamless convenient approach to get your home sold.