A hard look at the real estate market with realtor assistance
Sellers have favored working with a realtor as far back as we can remember. In the last few years, veterans, empty nesters, millennials, and relocation buyers, in particular, have emerged as a force in real estate transactions. They are looking for benefits missing from the traditional route, thus giving life to new options that threaten to disrupt the industry significantly.
The customer segments mentioned above want convenience and a speedy result, without losing money on what is perhaps the biggest asset in their lives. So by calling a realtor to help, what’s the problem? Quite a lot, it seems:
- Once realtors are in the mix, on both sides of the deal, sellers should expect around 6% commission deduction based on the closing price of the home (i.e., seller pays all the commission).
- Realtors earn only if there’s a sale. Therefore, they frequently urge the seller to spend money creating curb appeal, staging the interior, decluttering, and in some cases renovating entire rooms like kitchens and bathrooms.
- They put the seller on notice that buying prospects will be traipsing through the residence from time to time as an unavoidable part of the experience. At these times, the kids and pets require some containment, and tidiness is always an issue.
- An MLS listing is a must, but it’s how the agent lists it that makes the difference. Photos and 3-D video scanning generally grab the audience’s attention quickly. Some upmarket realtors offer this service for free. However, most provide it as a paying option or don’t offer it at all.
- On average, it takes sixty-five days for a house to sell, although the variance is broad, and it can take months in certain areas.
To be fair, much of the above doesn’t count when it’s a sellers’ market, with buyers lining up to put in a bid. The latter looks past all the poor aesthetics in their rush to lay a claim, and the deal closes soon after the first show day. Indeed, a smart realtor in the seller’s corner, controlling the auction-style process or moving competitive bids up the ladder, makes the commission worth its weight in gold. However, Zillow, amid the Covid-19 pandemic, rates most markets up and down the USA as “cold.” In other words, sellers’ markets are a rarity these days.
So is that the end of the problems with realtor involvement?
No, it’s just the beginning. The stress begins, ironically, the day the seller receives an offer. Consider the following:
- The prospective buyer’s agent will likely suck opposite parties into a negotiating process.
- After the haggling, the asking price may shave down by five to ten percent, especially when buyers rule the roost.
- Then, watch out for contingencies. They can genuinely throw the cat amongst the pigeons. Three biggies are worth mentioning:
The buyer’s home inspection days after an accepted offer
Emotions can run high as the licensed inspector finds defects like mold in the walls, broken windows, and a dysfunctional pool filter. Also, many small niggling items that the buyer insists the seller repair or offer a price reduction. Sometimes severe structural damage can come back to haunt one, and it’s an emotional shock to expectations so late in the deal. Several transactions running smoothly derail in an instant once the home inspection contingency in the contract transforms into an unpleasant surprise.
The home assesses too low.
The buyer showed a pre-approval for a mortgage above the value of the residence selling price, so making the official approval a contingency didn’t seem like an obstacle. The problem is that the lender’s assessment of the property comes in lower than the agreed price. A loan approval based on a lower valuation creates a negative monetary gap. Unless the buyer can fill it, the seller has to accept a discount on the original offer price, or the deal goes south.
Share of closing costs
In a buyers’ market, there’s no telling how many last-minute jolts the seller will receive before the deal closes. Buyers smell weakness and aren’t shy in turning the pressure cooker on and grabbing extra dollars at the death.
Summary of traditional home-selling
When all is said and done in buyers’ and neutral markets, the seller could face a reduction of 10 – 12% versus the listing price, before accounting for contractual obligations and taxes. A massive negative against this system is the curved balls thrown by contingencies after receiving a buyer’s offer. Instead of celebrating, the seller has to sit around, while lenders and home inspectors arm the buyer with enough ammunition to slice off pieces of the money the seller expected to receive. Other than that, there’s substantial inconvenience built into the process and some spending to get it show-ready.
Why Home Buyers Birmingham – a reputable cash Home Buyer – is a much better alternative for most sellers.
If you live in Birmingham, Alabama, and you’re thinking of selling your home, you have to read the rest of this article. The company zones in on all the realtor weaknesses, providing a solution that should resonate with almost any home seller. These are the facts for your consideration:
- Home Buyers Birmingham erases realtor commission from the equation right out of the box – a six percent saving.
- They’ll get an offer back pronto, making it possible to close within a week.
- It’s an all-cash offer, so there are no mortgage assessments or approvals in the way of a mutually satisfactory deal.
- Home Buyers Birmingham will inspect your home, but do it before it makes an offer – not a week or two after. Indeed, your offer will show a top number less the repairs, OR the top number with no deductions, as long as you, the seller, take responsibility for the repairs. You get the bottom-line right away, not the “maybe” that comes from selling with realtors.
- You don’t have to declutter, renovate, or create curb-appeal. Home Buyers Birmingham won’t penalize you for being sub-par on these items.
- Nickel-and-diming you after the offer will never happen on Home Buyers Birmingham’s watch.
- The company, as an all-cash, quick close buyer, is there to make a profit. However, although the offer is below market value, it’s still good considering the commission and other costs saved.
- Home Buyers Birmingham is flexible on your closing date. They don’t want to put you under unnecessary pressure.
- When you work with Home Buyer Birmingham, you’ll notice that its contractual agreements are easy to follow, and there’s no small print designed to snag you after the sale.
In conclusion, reviews show that sellers all over the city trust Home Buyers Birmingham from the get-go. They know they can trust the company to carry through on its promises and offer a fair price. It’s a must-see alternative every seller should explore before going the somewhat cumbersome and stressful traditional route.
1821 11th Avenue South Suite #55331
Birmingham, Alabama 35205