Real Estate Wealth Building Tip:
Don’t sell with an instant offer company.
Instant offer companies. They have been around for a while now. We recommend that you start reading up on instant offer companies in your area.
Some companies say that they will give you a “Market Value” offer on your home. We are not sure what they are using to determine market value, but sometimes the offer is really low.
What we hear all the time is, “But it’s convenient.” But is it really the type of convenience really worth losing tens of thousands of your hard earn cash?
We added a screenshot of an example “Instant Offer”
Say your house is worth:
You are already down -$20k
Closing Costs at 1%:
Now you are down -$22,450
$5,000ish from our experience.
Now you are down:
Company Service Charge 10.5%
That brings your hard earned equity lost to -$53,175.
How much do you make in a year? $53k is probably a decent percentage of your yearly income. Are you ready to hand that money over to an instant offer company for “convenience”?
That is not a very good wealth building strategy.
There are different ways to sell your house that are not as costly.
For sale by owner (which is hard to do too) or hiring a Realtor being 2 of them.
In that same scenario above, the average Realtor fees for selling your home at the $265k amount are not even as high as the loss on the $245k offer amount. Avg Realtor fees at $265k would be around $15,900 plus closing costs. Remember, the instant offer company offered you $20,000 less ($245k)? Just by having a Realtor get you an offer for $265k covers their fee.
I would be happy to consult with you on selling your home in the Phoenix Metro to help you meet your home wealth goal. Book a consult here. If you need to know the value of your home or other wealth building tips, just enter your address below to access our free wealth building tool and analyze your home today.
Want to do more research on Instant Offer companies?
Here’s an article from Market Watch.