Considering selling your home to large company?
Roseville, Calif.- Recently, we have been helping a homeowner who was considering selling his home to one of the big companies who buy homes. We recognize there is a place in the housing market for these companies as they provide some convenience to sellers and also understand they are a business and want to make a profit. What we were surprised at was the tactics this buyer used and the significant profit they were seeking.
We understand they are in this business to make money and as a result expected to see an offer below market. The offer our family received was not significantly below market. It was not unreasonable but at least $10,000 or more below the current market.
Along with the offer the buying company present the results of their inspection and wanted to charge the family over $8,000 in repair costs. We reviewed the list and determined they had found everything they could, and we believe inflated the cost to repair.
Buried in the contract
Buried in the contract they presented was a fee of almost 6 percent of the purchase price to be paid to the buying company. So, they were going to make money on the purchase price, the repairs and the bonus fee.
When you add the below market purchase price, the repairs, and the fee we determined the family was going to lose about $40,000 by not listing and going on the market.
The homeowners told us they were being pressured and were told the market had changed and it would be difficult to sell if listed. This is a nice 3 bedroom/2 bath home in Roseville which we know will sell.
If you are considering selling your home to a company, we strongly encourage you to talk to an experienced Realtor and ask them to review your offer and situation. Most agents will be happy to help.