There are several companies out there willing to make an instant offer on your home, such as Zillow, Knock, Opendoor, Offerpad, HomeLight, and HomeGo. It may seem enticing to sell your home with one of these programs due to the convenience. However, it’s not a good idea, in most scenarios.
If you’re considering selling your home, it’s essential to know your options. Before you consider an Instant Offer Program, you should understand the disadvantages of selling your home to one of these companies.
Valuations are Not Accurate
The most popular of the online valuations out there is the Zestimate from Zillow. This valuation, however, isn’t accurate and even Zillow refers to it as a starting point. The inaccurate valuation you may receive from an instant offer program will likely lead to the next disadvantage.
Lower Than Market Value Offers
Understanding that selling your home to an instant offer program from Zillow, Opendoor, or Knock means you’re selling to a middleman. They have to be able to make a profit, or it’s not worth it. This means, you will likely be given a lower than market value offer, and sometimes, it’s much lower.
Often, these companies plan to put some money into the property before selling it. You’ll be the one taking the hit as they profit off your property and promote it to you as a convenience.
Higher Fees Than You Might Expect
Companies, such as Opendoor and Offerpad charge fees when you sell to them, such as a service fee or even an experience fee. These fees tend to add up and can rival the commission of a good real estate agent.
The thing to consider when it comes to the fees associated with instant offer companies is which you’d rather have. Would you rather have an agent working on getting you top dollar for your home, or would you rather pay fees to a company looking to give you a low ball offer and profit from your home?
Is there Ever a Time to Use an Instant Offer Company?
While these programs are not great for most sellers, they do work well for those in need of a very quick sale, especially if the property needs quite a bit of work. If you can afford to accept a low ball offer and you need cash quickly, these programs may be a good idea. However, if you’re just ready to sell your home and you want top dollar, an instant offer program is a mistake.
How an Agent Can Help
Instead of taking a quick cash offer, most likely much lower than market value, hiring a good real estate agent can make a difference. With the right agent, you’ll have somebody looking out for you and creating the right marketing strategy for your home. This may lead to multiple offers and even offers above asking or right at the asking price for your home.
I would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, trust that you can turn to me. I will help you make the right move! Anna Granger 704-650-5707 | firstname.lastname@example.org.