I’m back! In what the L.A. Times deemed a “Las Vegas story” I had a wild time that kept me busy for a bit. You may have seen the national news story: escaping felon on his way to Court for sentencing hijacks a truck while under fire from the police officer that let him escape, rams 4 cars, and leads cops on a high-speed chase in DTLV – until he runs out of gas.
Uh, no, I’m not the felon. My beautiful red Cadillac was one of the 4 cars this jackass rammed. It was completely totaled. The escapee was sentenced to life in prison with no possibility of parole the next day. My son was driving, and for me this begs the question: why would Metro have ONE 25-year old officer with 2 years experience guarding a repeat and violent felon? A perp so bad that he was going to prison for life. Metro has decided to start assigning two officers when transporting criminals. Ya think?
Meanwhile, back at the farm…
I grimace every time I see a solicitation from one of these online “e-buyers”. I’m sure you’ve seen the marketing – there are numerous companies trying to buy your home, cheap. Their warm, fuzzy messages belie the fact that these buyers are charging the seller 6-7% to take their home off their hands.
(Zillow.com/Offers Ad courtesy of YouTube. Click image above to watch ad.)
Okay, for the ease of selling your home without showing it to buyers – you know, real people – you are asked to pay a “fee” instead of a Realtor’s commission. Sounds easy enough; save a little time and hassle. But how likely is it that an e-buyer can pay the same price for your home as someone buying their dream home when they plan to flip it for a profit? The e-buyer needs to sell the home for more than they just paid you – how can they do that unless they pay you less than market value?
Realtor’s commissions aren’t fixed – they are negotiable. For that commission, you have someone representing you and trying to get you the best price and terms – not to buy your home for under market value to resell! A good Realtor seeks to expose your home to as many buyers as possible, with the goal of attracting the best offers possible.
Full disclosure: Yes, I’m a Realtor. This just rubs me the wrong way. Please think twice before selling YOUR home for less than it’s true value.
Zillow is a great example of the e-buyer platform, and I’m not picking on just Zillow. Because the seller skipped the whole process, this home will be “new” or “fresh” on the market to buyers. That’s when the home is likely to fetch the best price. Sweet deal for the company that just picked it up under market.
Image & story courtesy of Inman.
Zillow is now offering direct mortgage services. They will list the home they just bought, and collect the profit. In the process of reselling the home they will offer buyers their in-house mortgage services, for a fee of course. While all of this makes great business sense for Zillow, consumers need to do business with their eyes open. Be aware of all of the fees you are paying for the convenience of a streamlined process.
One-stop-shopping may not be worth the price. Selling your home the traditional way should help you keep more of your hard-earned money in your pocket. Sometimes the e-buyer’s quick, “less-hassle” process makes sense. Sometimes, due to life’s circumstances, this speedy process legitimately matters to a seller more than money.
If you ever need help making sense of YOUR real estate world, I’m here to help.
Robin
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