Beware of Guaranteed Cash Offers

The new year has begun and it’s once again time to revisit the subject of “guaranteed cash offers” and the financial impact of selling off-market.

A recent offer we saw on one of our Team Members’ homes prompted us to remind our friends and clients about the financial impact and loss you could incur by selling off-market.

This particular cash offer promotes no listing fees, commissions or closing costs, but what it fails to show is the net loss, even after all the costs of listing, this Seller would likely see.

The offer was for $837,409, which is roughly $370,000 or 31% below the auto-generated online estimate, and roughly $900,000 below the probable market value, as this home has a number of improvements.

So even with the omission of commissions and closing costs and just taking the auto-generated online estimate into consideration, taking this offer would cost the Seller an estimated $160,000 at the closing table.

For our local market, which covers Alpharetta, Johns Creek, and Roswell, the impact of cash offers, even coming in 20% below fair value if listed, would result in over a $100k loss at the closing table, even without commissions.

Check out our prior blog post, “How Do I Sell My Home For Top Dollar?” https://robinmartinassoc.com/selling/how-do-i-sell-my-home-for-top-dollar/, in which one of our sellers was approached by a cash offer company, but chose to listen to us before accepting an off-market offer. By listing and marketing the home, we got our client $160,000 more!

We encourage anyone looking to sell to consider the numbers. Finding a top Agent and Team with a proven track record could generate tens of thousands more in your pocket at the closing table.

Call 678-665-0202 today to learn more about how we can provide you with top results and a stress-free experience! Don’t take our word for it, read our 100 5-star reviews on Zillow!