The Hidden Costs Of Selling Your Home The Property Guys Way
Getting your home sold in just one day with multiple offers might sound too good to be true, but these days there are many start-ups and tech-backed companies promising to do just that. They guarantee a sale in a certain time period, buy the house directly from you, or offer a platform where you accept and review online bids from buyers.
It sounds like a dream come true, right? Unfortunately, it doesn’t always work out and has some serious hidden costs.
Hidden Cost #1: Low-Ball Offers
The main reason why most sellers choose to list with a real estate agent is to maximize the value of their homes, and the data backs this up. According to NAR, the average “For Sale By Owner” sales price is significantly lower ($185,000) than the average price of a home represented by an agent ($245,000). This is because a real estate agent who is immersed in their local market understands how to price a home properly, utilize staging to show off the home’s best features, make expert recommendations on any fixes that could be made to get a higher value, and negotiate with the buyer’s agent so you don’t end up cutting the price in order for the buyer to commit.
For flat-fee platforms, the offers you receive depend on how many people can actually see your home. One reviewer reported they contacted them many times to ask them about this so-called marketing plan.
A real estate agent challenge The Property Guys on this so-called zero commission fee. "If the seller or Property Guys is not going to pay my commission, then I got to get my buyer to pay it. And how many buyers do you know that have 10 or $20,000 kicking around," Redwood said." The Canadian Real Estate Magazine
Hidden Cost #2: No Human Contact
If you’re the type of person who lets every call go to voicemail, this problem can sound like a positive. But consider the fact that when you sell your home, you’re probably going to want someone to call if your listing. Even worse: when any messages you send about those issues go unanswered. They don't call back. They didn't take down the information properly. They don't really care. The customer service is national. nothing local.
Hidden Cost #3: Unexpected Surprises
The main issue a seller will run into is a lack of one-on-one representation. For example, when you list with a service like Purple Bricks that promises to sell your home for a flat fee, you’re matched with an “area expert” who may be stretched for time.
A real estate agent markets your home beyond simply hanging a sign in front and placing the listing on a website. When going the alternative route, if you don’t have an “expert” who is willing to do more than upload photos, you could end up having to do things like distribute flyers about your own home.
When it comes to services that offer to buy your home outright, the relationship between you and the company can be minimal. A complaint on the BBB (Better Business Bureau) of someone who used their services indicates they lost thousands in revenue.
"Told us we would only get qualified buyers and we ended up getting a buyer who delayed the closing of one of our properties for three months and costing us thousands in lost revenue and expenses only to find out the buyer was not only not qualified but the buyer asked us if she could borrow the down payment from us."
- The Property Guys Customer
In the end, the “The Property Guys Way” way of selling a home isn’t for everyone. If you’re thinking about making your next move, start by getting in touch with a real estate agent to learn more about what you can expect from the selling process.