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I see a lot of advertising on TV by companies offering to buy your house. If anyone here has any insights into this, please share with us.
I am particularly interested in the price discovery. Do they, in general, follow some type of algorithm on price? How is their typical offer to purchase your house compares to the county assessment?
From the article: The strategy used by cash-for-homes companies is to negotiate the lowest price possible for your home. On average, they'll offer about 65 percent of a home's fair market value.
If the convenience of selling to one of these companies outweighs the net price you'll receive, be sure to find an established company with decent reviews as there are a lot of scammers out there.
I see a lot of advertising on TV by companies offering to buy your house. If anyone here has any insights into this, please share with us.
I am particularly interested in the price discovery. Do they, in general, follow some type of algorithm on price? How is their typical offer to purchase your house compares to the county assessment?
They are not in business to do you any favors so I would think they would offer low prices to people desperate to sell.
From the article: The strategy used by cash-for-homes companies is to negotiate the lowest price possible for your home. On average, they'll offer about 65 percent of a home's fair market value.
If the convenience of selling to one of these companies outweighs the net price you'll receive, be sure to find an established company with decent reviews as there are a lot of scammers out there.
I see a lot of advertising on TV by companies offering to buy your house. If anyone here has any insights into this, please share with us.
I am particularly interested in the price discovery. Do they, in general, follow some type of algorithm on price? How is their typical offer to purchase your house compares to the county assessment?
I have been engaged with OpenDoor on a property that I own and am in the process of selling.
Figure whatever they offer you will be less than market price. In the case I have, the offers have actually been pretty decent - but - they’ll get 7%-10% in fees right out of the gate. Then, they’ll inspect the property and come back with deducts for all the work they need to make the property marketable (in their mind.)
I have shot them down twice on this. The repairs they suggested were primarily cosmetic, like paint. How many people have moved into a new home and not painted? Even just one room?
They took the paint off.
They said the wood floors (real oak tongue and groove, not engineered floor) needed refinishing. I had a flooring contractor come in before offering the house to check the floors and take care of some gaps that had developed over time. He said they looked fine and still had many years of use left in them and wrote this in their report, a copy of which I provided to OpenDoor. Understand that the amount they had for refinishing floors was exorbitant.
I told them to justify their claim. They said, “Our inspector said they need to be refinished.” I told them that I needed to see specific issues or have damage or the rationale for replacement. They hemmed and hawed for a bit and then said they wouldn’t back down on the floors.
I thanked them and told them “No thanks!” They came back several times, each of which I reiterated that the floor issue was a dealbreaker and not justified. They dug in their heels and passed.
No problem, Good Day!
Ironically, they called again today. I told the person calling that unless they were ready to drop the floor “repairs” we had nothing to speak about and to not call me again unless they were dropping the floor repairs. They started in on all the expected “You’re going to regret this”, etc., etc.
So that’s what it’s like working with someone like OpenDoor. Not a bad thing if you are looking for a quick sale and can take less than market. In my case their price was very realistic - not market, but probably about 5-10% below. I’m sure they make their money beating sellers up on repairs. Whether or not they actually do them I have no idea. I’m guessing they probably do the minimum amount of work to bring the property to market.
I did everything to prepare the property for market and know what my comps are, they’re recent and very close to the same as my property. I’m prepared to go with a flat fee listing service, but I figured I would try OD. I’m in no hurry, so it looks like we’ll go to the market with MLS and a flat fee.
I am particularly interested in the price discovery. Do they, in general, follow some type of algorithm on price? How is their typical offer to purchase your house compares to the county assessment?
I don’t believe anyone has pointed out that the assessed value of your home for tax purposes may not have any correlation to the appraised value of your home for a purchase transaction.
I see a lot of advertising on TV by companies offering to buy your house. If anyone here has any insights into this, please share with us.
I am particularly interested in the price discovery. Do they, in general, follow some type of algorithm on price? How is their typical offer to purchase your house compares to the county assessment?
Sure, figure 55-60 cents on the dollar. (Not kidding.)
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Bad link!
