iBuyers Offer a Service- at a cost
Offerpad, Knock, and Opendoor are offering to sell your home easier
These are just some of the promises being made by online companies looking to make your home-selling process much easier. As with most services- easy often comes at a price.
Our internet age has made so many things easier and has brought a hands-off approach to most errands. Companies like Amazon and UberEats have made it easier than ever to have our lives delivered to us without having to leave the house!
One such online company, Offerpad, is seeking to do the same in the real estate industry and making lots of promises.
The company will buy your home in cash and makes the claim that you can pick your own closing date, no showings or open houses and no need to get your home market-ready.
The offer sounds so great that I tried it myself.
After going to their website and entering my home address, I answered a few questions about my homes condition and was emailed the following offer just 24 hours later:
Net offer: $181,429.86
The amount was right there. The email and follow-up were great an no one even stopped by my house.
For some context, I bought my home as new construction in April 2017 for $226,000.
Estimates show that property values in my area have increased between 8%-9% since that time.
Values have increased and no one had even seen my property before making an offer.
If, at a minimum, my home value increased the 8% then my home would be worth about $244,000. Had I accepted the offer provided to me, I could potentially be losing out on over $62,000.
The only possible scenario in which this might make sense is if I had no family, no philanthropic desires and I was reporting to prison (with no possibility of parole) the following day.
The marketing mumbo-jumbo was great. They were true to all of the promises above but left out just enough to make the service seem like a real treat.
Perhaps you’ve considered using a service like this. Don’t fall into the “we make it easy” trap that can potentially cost you big money.