Thinking about Selling Your Home to a Wholesaler?
Every day, thousands of homeowners receive letters,
postcards, or see road signs offering to buy their homes. These buyers, known
as wholesalers, are widespread, prompting numerous inquiries to the North
Carolina Real Estate Commission (NCREC) legal department.
Only REALTORS® are bound by a Code of Ethics and a fiduciary
responsibility to the seller – they prioritize your interests over theirs. This
isn't always the case with wholesalers. While some are responsible, it's
essential to exercise caution.
When considering selling real estate, especially if
significant repairs or updates are needed, wholesalers may be an option. However,
Unted Country – Broker Associates offers three options.
Option 1: We have professional wholesalers who will make a Cash
Offer.
·
The true wholesale professionals we work with
assess the After Repair Value (ARV), calculate renovation costs, and provide
competitive offers.
Option 2: The Standard MLS Listing used by REALTORS®
·
We have distinct MLS programs such as our
Certified Pre-Owned Home Program
Option 3: The Kickstart Program
·
Kickstart uses the modern online Bid to Buy method
to sell property.
In this blog, I will explain Option 1, the Cash Option, how
it works, and then introduce Option 3, Kickstart. As most people are aware of Option
2 and how it works, I will not review it.
After determining a customer’s goals, together with our
customers we determine if our Firm is a good fit, then we make an appointment
to inspect their home and we discuss goals, our 77 Step Listing Plan, the best available
options, and then formulate an Action Plan.
Our inspection and valuation determine the marketability of
the home. If it's "Move-in-Ready" with good comps (comparable homes
recently sold), we typically recommend the Standard MLS combined with one of exclusive
programs. If not, we will explore the other two options.
Repair or Not to Repair and Your Alternatives:
#1 - Selling to Wholesalers:
Wholesalers follow a similar process when evaluating and purchasing properties:
1.
Assessing the ARV: Determining the potential
market value of your home after it's fully repaired and updated.
2.
Deducting Repair and Update Costs: Calculating
the estimated expenses required to bring the property up to market standards.
3.
Factoring in Contingencies: Including an
additional amount to account for unforeseen repairs or hidden issues.
4.
Anticipating Profit: Considering their expected
profit margins when making an offer.
Advantages:
1.
Quick Sale: Transactions are often completed
within a matter of weeks.
2.
No Repairs Needed: Since they purchase
properties as-is, you can avoid the time and cost associated with renovations.
3.
Certainty of Sale: There's a higher degree of
confidence in a smooth transaction as buyers don't rely on mortgage approvals.
Disadvantages:
However, there are common practices among some wholesalers
to consider.
1.
Asking for a lower sale price once they inspect
the home,
2.
Offering a small Due Diligence ($1 to $100)
3.
Extending the closing date to 60 days after
initially promising a two-week cash purchase
4.
Listing your home on the MLS at a much higher
price.
- According to the NCREC, these
comprise the most common business practice.
#2 - Selling Using The Kickstart Program:
While selling to wholesalers offers a quick solution,
Kickstart presents a modern alternative. It utilizes an online Bid to Buy
method for selling your home, combining the effectiveness of traditional
auctions, the convenience of MLS listings, and state-of-the-art online
marketing.
Kickstart also works well for homes that haven't sold
(Expired Listing) on the local Multiple Listing Service (MLS) and for estates
that include personal property needing to be sold. Some clients prefer the
features of this option.
Kickstart sets itself apart by providing transparent pricing
that aligns closely with your home's true market value, ensuring a fair deal.
Advantages of Kickstart:
In addition to its core benefits, Kickstart offers the
following advantages:
1.
No Commission Paid by the Seller: Eliminates the
need for the seller to pay any commissions, keeping more of the sale proceeds
with no hidden fees.
2.
No Due Diligence Required: Simplifies the
process by removing the need for a Due Diligence period, as required in
traditional real estate sales.
3.
No Contingencies: Provides a "Sold As
Is" approach with all terms and conditions determined in advance by the
seller, offering a straightforward transaction.
4.
Most importantly, Kickstart is a program
overseen by the NCREC, where only Licensed Real Estate Agents sell your home
along with an auctioneer licensed by the state of NC.
Conclusion:-
In a real estate market that continues to evolve, staying
ahead of the curve is crucial. Kickstart offers a safe and efficient solution
for homeowners in the Triad looking to sell their properties. By combining
elements of cash offers and traditional listings with a modern online bidding
and marketing system, it provides an attractive alternative that ensures a
competitive market value and a smoother selling process.
Embrace the future of home selling with Kickstart, a solution that not only offers a more competitive way to sell your property but also addresses the unique challenges posed by the evolving real estate landscape in recent years. Whether you're considering wholesalers or Kickstart, choose the option that aligns best with your specific circumstances and goals, while enjoying the added advantages of transparency, no commissions, reduced due diligence, and a straightforward, legal selling process.
MAKE AN APPOINTMENT AT: Consultation or call 36-391-8094.