Zillow is coming out with a new program to sell your home to an investor called "Instant Offers." It hasn't launched in the Redlands real estate market yet - right now, trial areas are Las Vegas, Nevada and Orlando, Florida. A seller will be able to submit their home for offers by answering a few questions and submitting photos. Then you will receive offers from a group of "big-name" investors, according to Zillow. You may also receive a market analysis from a Zillow agent. Zillow "encourages you to use an agent" but doesn't require it.
I work with several investors, and the way they work is this: I run comps for them on a particular property in Redlands, Highland, Yucaipa, etc. so they can determine how much it will be worth, once it has been rehabbed. Then they determine how much they will spend on getting the property read for market. They add those costs to how much it will cost them to sell it - closing costs and commission. Then they write you, the seller, an offer for 70-75% of After Repair Value ("ARV"). For the property to work for an investor, they have to get it at a deeply discounted price. The people that are receptive to these offers are typically in a difficult financial situation, and need to sell right away. I can't begin to tell you how many of these offers I write that get absolutely no response because they are so low. They are NOT for the typical home seller. I'm sure you would want top dollar for your home! Also, some investors will get a seller into escrow and then telling them, you need to fix that pipe, you need to cut down that tree, etc. And the seller, not understanding it's not a requirement, and fearing the transaction will collapse, will bear the additional, unneeded expense. These investors can be tough! For many people, buying or selling their home may be the biggest financial transaction of their lives. When I close a file, I may have roughly 50-60 documents that are required, and that doesn't include loan documents. Also, California is considered one of the most litigious states in the country, and no one wants to be sued. Before I sold real estate, I attempted to sell my own house without an agent. When I look back, I think "how naive!" This is a preview of how Instant Offers will work, once it comes to our area, and I just want you, my friends and clients, to understand. Please let me know if I can answer questions for you.
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AuthorI am Rhonda Stanton, your Inland Empire real estate expert -- the market, the history and the other people that will be part of the home-buying process. ArchivesCategories |