Remember the old song “One eyed, one horned, flying Purple People Eater”? Well, that monster has been replaced. Today it’s a “PurpleOpenZillPad” Equity Eater! It’s gobbling up homeowners equity all around you!
Allow me to explain, and help you avoid the beast!
You see, there is this really convenient, “No Hassle”, “No Showings”, way to sell your home with the onslaught of Real Estate Tech Companies pounding their message into your head on TV, Radio, Billboards, etc. etc. They promise a “Fair market value” and a “No hassle purchase”, and ask you “Why pay commissions to a real estate agent?”
- Let’s start with the first promise, fair market value. Common sense tells you that cannot be factual because if they paid you fair market value they, in turn, would not make any money. They have to resell the home in order to profit. That means they pay you BELOW FAIR MARKET VALUE, then turn and sell the home AT MARKET VALUE. Your equity, is their profit.
- They tout that “Showing your home is a hassle…we buy it and you don’t even have to show the home”. Translation, “We [the tech buyers] won’t have to compete with other buyers that may be willing to pay you more for your home.” Why would you not want competitive offers that maximize your “Cash in hand” potential?
- Then they try to tell you that they don’t charge that nasty “6% Commission” that your agent charges. True…they don’t charge a commission. They charge “Fees”. “Holding fee”, “Repair fees”, “Processing fees”, “Title fees”, etc. that typically equal 7.5% or MORE…and that’s AFTER they buy your home for thousands, even tens of thousands LESS than actual value. (NOTE: That 6% commission charged by a Real Estate agent can, in many cases, be negotiated on.)
Below are randomly selected tax records of sale that illustrate to you just how much money these companies are taking from you (the seller that doesn’t want to be hassled).
You will see the sale price from when the original owner sold to the “PurpleOpenZillPad Monster”, then what the monster re-sold the home for weeks later.
In the 6 examples above, the total amount of money lost to the 6 people (or couples) that sold to these companies is up to $133,915!
Bear in mind that that is money that is not only lost to the sellers, but to the local community. This money goes to the company headquarters, San Francisco for example. Now, it’s not in the hands of the seller, or the local realtor that shop in our communities. The economy grows when you and I spend our hard earned dollars at local stores, restaurants, and entertainment. It is very important to keep those dollars local so we can all succeed.
Bottom line: Share the facts with your neighbors. Stop feeding the monster. KEEP YOUR MONEY! Hire a LOCAL, PROFESSIONAL, ETHICAL REALTOR.
I have an awesome team of professionals in our corner to ensure a smooth transaction.
If you’re not ready yet, we can help you set a plan to get there with free advice and guidance.
I would be honored to earn your trust, your business, and your referrals. Give me a call, let’s get started today! (602) 818-6065 or Kevin@GiantAgent.com