Two months ago, I was at a listing presentation for a $400,000 house in Dublin. The owner was an older lady looking to right-size and buy a patio home.
The presentation went well. The lady’s family seemed to like my style and assertiveness and was ready to hire me to sell her house.
When I called back a few days later she told me that someone knocked on her door and offered to buy the house all cash for the agreed upon list price.
A full price cash offer with no commissions owed to a Realtor seemed like the perfect deal. She accepted and told me she did not need me anymore.
A month later I called to follow up and see if everything went well.
That’s when her son told me the full story, how his mother received $50,000 less from the sale of her house, and how she overpaid on the new patio home she purchased directly from a builder.
The Botched Cash Offer
The cash offer from the door-knocking buyer was $405,000, however, he demanded an inspection.
The home inspector documented a long list of problems with the house. To continue with the purchase, the buyer insisted on a $50,000 price reduction.
This happened just a few days before closing, when the seller was already in contract for her new patio home.
She was mentally moved out of her old house and had no choice but to agree to the lower price just to get the sale done.
How I Could Have Prevented the Loss
Had I listed her home we would have likely attracted multiple offers. With more competition I could have negotiated a higher sales price and the very best terms for my seller.
In today’s market it is not uncommon to receive offers without an inspection contingency or at the very minimum offers that waive the remedy clause.
You would not know this as an unrepresented seller. The lack of real estate sales experience cost her $50,000 and a lot of aggravation on top of it.
Buying an Overpriced Patio Home
Talking to a builder without the support of your Realtor may cost you dearly. Most builders’ reps will try to upsell you on expensive options you may not really need, but can’t refuse when they are offered.
Options often add 20% to the base price of your new built home – close to $100,000 on a typical Central Ohio patio home.
As an experienced agent I can help you select the options you really need, and the ones that have a greater impact on the future resale of your home.
I can negotiate with the builder on your behalf. That’s important, because you make emotional choices when you buy a new home, while it is my job to stay objective and not succumb to the pressures of a salesperson.
The ROI of Hiring the Best Agent to Represent YOU
The lady I told you about could have saved at least $76,000, if she would have hired me to sell her house and represent her with the builder.
First, she would not have lost $50,000 to the cash buyer of her old home. I would have negotiated a contract without an inspection contingency and most likely also received a higher sales price.
The total cost of commissions would only have been $24,000 (6% of the sales price) split between buying and listing agents.
That’s savings of $26,000.
I also could have saved her close to $50,000 in unnecessary options on the new patio home. And the builder would have gladly paid for my commission.
Don’t try to buy or sell by yourself. An experienced Realtor is worth 3 times the commissions we charge! Call or Text me NOW at (614) 975-9650!