Should you sell with a discount brokerage?
I’m sure you’ve seen all over tv commercials or social media these companies that are popping up out of nowhere, saying they will buy your house, 14 days, cash, quick and stress-free close. Some of them even advertise “move when you want!” or “We’ll pay your moving cost!”
Should you?
It depends.
It’s a strategy that’s as old as Real Estate. Where there is someone thinking of selling, there is someone thinking of how they can make a buck. To first answer the question of should you, we should first take a look at how these companies make money.
Many of them are a discount brokerage, where they will buy your home, at 40-60% of its value, provide you quick cash, even pay your closing costs. They can do this because again, they are making a huge profit off of you. They will then turn around and try and sell the home at its full value. Let’s turn around and say your home is worth $400k. If they offer you 60%, they will offer you $240k, then turn around and try and get $400k for themselves. Or some variation of that. They will keep the home as an investment for themselves, may have a network of investors looking for this type of property, flips, etc. Another way these companies make money is they may write you a full price offer, then nickel and dime you to death. I had a horror story from one of my clients, who were told that the nearly new(2016) home they were thinking of selling, according to the discount broker, needed over 40k in repairs. There are a number of different variations, but the fact is all of these companies aren’t necessarily there to help YOU get top dollar for your home.
If you need to sell quickly, and can accept a lowball or less than top dollar, then maybe this route may be for you(EVERY single Realtor who’s been in the industry long enough has enough investors to do this same thing for you, by the way) If you truly want to get the maximum amount for your home, you’ve got to work with a Realtor who actually knows what they are doing!
If you’re thinking about selling, call me now! Or you can fill in the form below and get in touch with me right away!