Repairs. Check. “For sale” sign in the yard. Check. Can’t think of anything else?
Think again. Still no luck?
Don’t fret. Selling a house is somewhat daunting, but it doesn’t have to overwhelm you too much.
If you have listed your house for sale, or spoken to a local real estate broker, you would have also read or heard about something called “Guaranteed Offer”.
We don’t know how well you understand what the concept entails. But this much we know that there’s nothing in life that comes with upsides only. Yes, by the look of it, a guaranteed offer promises to sell your home virtually, in as little as 14 days (or after you find a new one for yourself), without any showings or open houses.
However, this may seem too good to be true, and for all the right reasons.
This site in addition the blog will explain what a “Guaranteed Offer” program is, and what its pros and cons are.
What Is A Guaranteed Offer Program?
Advertisements like “We Buy Ugly Houses” or “We Pay Cash for House” are quite an attention-grabber.
Real-estate companies buy homes at a price lower than the market-value, do minor repairs, and resell them at a profit. Home sellers give in to the gimmick and trade off a huge share of their rightful profit in exchange of a guaranteed sale, and a simple deal closing process.
When considering to take the guaranteed offer route, always beware of instant-buyers (or iBuyers, for short) promising to pay market-value for your home. They are false friends. You’ll soon find out that the price they pay you is not anywhere close to what you’d have gotten, had you sold your house to a traditional homebuyer.
Which Homes Qualify For A Guaranteed Offer?
Bear in mind that not all homes qualify for a guaranteed offer. If you own a home that was built before 1970, is far from mint condition and needs serious repairs, occupies a large amount of land and space, or is worth over $700,000, it’s well-nigh impossible that you secure a guaranteed offer from a real-estate company.
An average iBuyer is looking to buy a property whose market value falls between $200,000 and $500,000, needs little to no repairs, and was built not so long ago.
What Is The Process Of A Guaranteed Offer Program?
The process is straightforward.
- You request an offer from a company.
- They request back photos or a video walkthrough of your home.
- They revert with an introductory offer in about 48-72 hours.
This offer, however, is subject to change. The guaranteed offer company will send a home inspector to make sure that the house is in good shape. If they feel otherwise, they will ask you to either subtract the repair costs from the overall sales price, or give them repair credit.
What Are The Pros And Cons Of A Guaranteed Offer Program?
When you’re selling a home, and an instant buyer has extended an offer, don’t close the deal before you have weighed all the pros and cons.
1. You are certain of a sale.
2. There are no showings.
3. You are not responsible for any repairs.
4. You have control over your timeline. It’s up to you whether you want to close the deal in two weeks or take more time.
1. You have to contend with a price lesser than your home’s market-value.
2. You have to pay a service fee.
3. When repairs have to be done, you might have to pay a repair credit too.
A “Guaranteed Offer” program is not the best option for individuals who want to maximize their profits on a sale. It suits those people who are either pressed for time, or value ease and convenience over netting the most money.