Instant offers a good deal for some sellers, but you might leave money on the table
The pandemic boosted the appeal for sellers to work with an iBuyer like Opendoor, Mark Spain, Redfin or Zillow Offers because offers are virtual, the companies will handle repairs, and sellers don't have to deal with strangers in their homes for showings.Posted — Updated
Maybe you've seen it in your neighborhood: Homes sold, then sometimes listed just days later, for tens of thousands of dollars more.
She says it was quick and easy!
She provided "literally just the square footage of the house. I uploaded pictures, I uploaded the improvements I'd made myself," said Johnson
A month later, Opendoor put it on market at a price of $415,000.
Still, Johnson says, she has no regrets about the price she got, and the quick closing helped her. "Due to my cancer diagnosis, it just got to the point where the house was too much for me to manage," she said.
- In Cary, Zillow Offers paid $484,000 for a home on Presidents Walk Lane in June. It's now listed for $48,900 more, $532,900.
- The company bought a home on Pauls Penny Lane in Raleigh for $319,000 in July. 12 days later, it was listed for $349,900, an increase of $30,900.
- In Durham, Opendoor bought a home on Highgate Drive for $440,500. Twelve days later it was listed for $60,000 more, at $510,000.
- Zillow got a home on Durham's Cottonwood Drive in June and listed it a month later for $72,900 more, at $517,900.
"I think that can go to show you that your house can be worth a lot more on the open market," says Raleigh real estate agent Rachel Lowe.
"I do think it serves its purpose," adds Lowe. "But if you're willing to go forward with kind of putting in minimal effort, even just to get it show-ready, it can be really worth your time."
For Johnson, those fees added up to almost $29,000: $9,088 for repairs, and a 5% service charge of $19,525.
Still, Johnson says for her, it was worth it.
She credits the quick sale with enabling her to quickly place an offer on a condo.
"You tell them, this is what I want out of the transaction, and if they can meet those needs, then it's the right choice for you," she said.
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