Guaranteed offer companies are becoming more and more popular these days.
You’ve probably heard them advertised on television. But there’s actually a dark truth behind their claims of a hassle-free deal, and today I’m going to blow the whistle on what these companies don’t tell you.
These companies make it seem like the normal selling process is majorly inconvenient, but this isn’t true. In fact, if you work with an experienced agent you’ll almost certainly earn a higher level of success through a traditional selling experience than by working with one of these guaranteed offer companies.
To illustrate this, I recently ran an analysis on the results you might achieve from selling to one of the most popular guaranteed offer companies Opendoor versus what you could expect from a normal listing experience.
For this analysis, I took six months’ worth of local sales from our market and ran the numbers to find out exactly how these two selling options stack up against one another. Of course, I also accounted for Opendoor’s fee—an expense they fail to mention in their advertisements.
The bottom line is this: In comparing the actual sold price of the 92 homes that closed in the six-month period I examined during this analysis to the price those same homes would have been sold for to Opendoor, sellers opting into the guaranteed offer route would have been left with $9,384 less in their pocket by the end of the deal.
So, is the supposed convenience of working with these guaranteed offer companies really worth leaving nearly $10,000 on the table? I don’t think so.
If you truly want a convenient, profitable deal, your best option is to partner with an experienced, knowledgeable Realtor to sell your home on the open market.
As always, if you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.