One of the latest trends in the real estate field has been the emergence of companies that specialize in buying homes from sellers.
There are large companies that will buy a home from a seller and then sell it to another buyer in the future.
Cons of Selling A Home To A Buyer Company
These companies have been used as an alternative to a real estate agent. This type of company operates by purchasing a property from a homeowner for less than market value and then selling it to another buyer at market value.
While this helps sellers save time, there are a number of disadvantages and risks of going with this approach. Using these companies will often result in not getting as much as you can for a home, never knowing the true value of a home and also not having the ability to negotiate during the selling process.
Getting Less For Your Home
When looking to use a buyer company the first disadvantage is getting less for a home. A homeowner who is looking to put a new property for sale will often want to get the highest amount possible for their home. However, companies such as OpenDoor will often offer to purchase a property from a seller for less than its market value.
As a result, the seller will have to settle for only 80% of the true market value of the home and not cash in on all of the available equity. The company will sell the property to new home buyers at its market value. Therefore the seller gets cheated out of getting what they should for the home.
The True Value Of Your Home
Another disadvantage of using a home buying company to sell a home is that sellers will never have sufficient knowledge about the true value of their home. They are often made to believe that their home is worth the price offered by the buying company. As a result, they are likely to sell the property for less than it is worth.
A realtor on the other hand is able to evaluate real estate listings and provide a seller with comparable prices of recently sold homes. This allows the seller to list their home at a price that is of market value and sell it for that amount.
Why A Realtor Provides A Personal Touch
For those looking to sell a home to a buyer, they will likely lack this key knowledge about the market value of the property when selling it to a company.
Whenever you are looking to sell a property to a home buying company, you will get less personalized service. In most cases, you may not get any personalized service at all. During the process of selling a home, it is important to have guidance and assistance during this complex process.
Buying companies don’t provide you with as much attention and accommodation as a realtor. Instead, they just look to submit an offer and then sell your home as soon as possible. As a seller, you are often treated as just a number. Therefore, you can be taken advantage of by these types of companies.
One of the main disadvantages of using a home buying company to purchase any new home listings is that sellers will never be able to get a maximum offer. They will just get a lower percentage of the actual property value. As a result, they will not be able to get the most possible amount for their homes.
Sellers will not be able to receive multiple offers which can result in selling the home for well above asking price. Rather than using a buying company, a real estate broker/agent can enable you to get multiple offers which can result in getting the highest amount possible when selling a home.
When conducting a property search in Orlando, buying companies are looking to purchase as many properties as they can at the lowest amount possible. Whenever a seller decides to sell a home to one of these buying companies, they are unable to negotiate.
As a result, they will need to settle for a fixed amount of funds for their home. Without negotiation, the seller has limited flexibility and no say in getting as much as they can for the home.
On the other hand, realtors are able to negotiate with a buyer in order to enable the seller to get a fair price for their home. Therefore, using home buying companies put sellers at a disadvantage due to eliminating the ability to negotiate a fair and adequate price for a home.