Is selling your house in 72 hours a gimmick? How about iBuyers?
If you watch TV or listen to the radio you have probably seen and or heard one of the many ads stating you can net $1000's more selling in 72 hours than if you sold traditionally. If you’re thinking about selling, those ads sound great! If I were not in Real Estate I might be tempted to call them.
Let’s take a closer look into the what is being advertised.
- Sell in 72 hrs (now 8 days) and net $1,000s more than selling the traditional way.
- No daily showings.
- Choose your closing date.
- Remain in the home for up to 6 months.
What is the actual reality of trying to sell your home in 72 hours(now 8 days) compared to any other Brokerage?
- If an agent or brokerage doesn't already have a ready, willing and able buyer for your home, prior to listing, any promise to sell in "x" number of days is a GIMMICK! Unless the agent or brokerage will buy it at that time. It’s absurd to say one brokerage can “net you $1000s more”. That means, buyers are willing to pay more for their listings! Really, would you? Think about it. They are literally saying, if you buy a home listed with them, you will pay more money than you would if you bought a home listed by any other brokerage? How do you get the most money for your home? You expose it to the highest number of potential buyers. So, when the people in their ads say, “they got “$30,000, $50,000 $72,000 and even $120,000 more than they expected, suggests they were not informed of the true value of the home! Or, what they could have said was they received $1000s more than their listed price. This was true in the 2020-2022 market. In that market just about every listing sold for more than the list price no matter what brokerage had it listed.
- No daily showings. GIMMICK! During the 2020-2022 market, yes, most listings sold without a lot of daily showings. Some with no "in person" showings at all. This is possible in a sellers market. However, in a normal market, trying to sell your home in 72 hours, which is advertised now as 8 days, isn’t in the best interest of the seller. Do you really want to limit the number of people that can view your home? As I stated above, the basics to getting the most money for your home is to have as many people see it as possible.
- Choose your closing date. GIMMICK! This is a negotiated item, however, in a sellers market, the seller has more power and can usually get the closing date they prefer again no matter which brokerage has it listed.
- Remain in the home for up to 6 months. GIMMICK! This is also a negotiated item. It had become quite common in 2020-2022 for the buyer to allow the seller to remain for a period of time after close but 6 months is pushing it for most buyers. The seller can make it a condition in the contract but, that can be done with any brokerage.
What about iBuyers and direct home buyers?
They are basically the same thing. The difference is in the approach. iBuyers typically do everything online and, at some point, send a person to your house to make sure the house is as you said it was online. I have heard, this can be an expensive visit. Most direct home buyers, come to your home first and then make you an offer. Both have one thing in common. They want to buy your home low enough so they can sell it and make a profit. Nothing wrong with that. I do think these companies should disclose this a little better but, that’s my opinion.
There are many different reasons home owners might want to sell to an iBuyer or direct home buyer. Maybe the seller inherited the house, or the house needs some work or they just want to sell quickly. Basically though, it’s usually just convenience. So the question really is; how much are you willing to pay for a little convenience as opposed to taking a little time and maybe doing some work? The difference can be substantial!
If someone said, I’ll give you an additional $30,000, $50,000, I’ve seen over $100,000 if you make some repairs or just update your home and sell next month. Would you wait? If possible, most people would.
Bottom line – Do your homework before signing or selling and ask the question; if my house will sell in "x" days, why do I have to sign a "x" month contract?