Oh 2021, you have brought us many things already. We ended 2020 with hopes and dreams and rest and a fresh optimism. Then you came in like a wrecking ball as we feared you might. Miley Cyrus had no idea that her song could be the theme song for an entire year! (or maybe even 2 at this rate)
Yet that is not what this post is about! (I could write the heck out of that topic - just not today!) This post is about explaining the myriad of options for Sellers in the 2021 and beyond real estate market. It's different than your parent's real estate that's for sure.
In our Seller Consultations we've always asked the question, "What is your primary goal in this transaction? Is it selling as fast as possible or is it netting as much in the bank as possible." We discovered that in most of our 2020 conversations with Sellers that this answer varied widely depending on the circumstances, motivation, and frankly the fear level of the client. Our listing packet has never been a one size fits all, yet last year we were able to expand our listing packet, our mindset, our knowledge base, our connections, our use of technology, our care and candor, and our list of questions for our Sellers more than ever before.
On one end of the Spectrum there is the convenience sell. The Amazon of real estate. How quick can we meet, sign paperwork, obtain a cash buyer and close!? This is not for everyone and yet it seems that advertising is everywhere selling this option as if it were a one size fits all. For someone upsizing locally in a highly sought after area this probably isn't the best option. For an investor selling a home they have had a renter in for 5 years this probably isn't the best option. For a business owner who lives in California who just inherited his great aunt's home that needs a ton of work but there is no mortgage on it - now we're talking. It's all about convenience.
You may have heard of Offerpad, Zillow, OpenDoor, Bungalo, etc, etc. These are all options that you submit your home detail via an online form and receive an offer. Guess what? Those offers are trending lower and lower b/c more folks are testing them. Guess what else? Real estate agents can submit your home detail to these sources, do the heavy lifting for you, and help you choose the best one because not all their fee structures are the same. It's very confusing! I know this because I owned a rental property and ran it through several of these online forms! To cash out if I needed to quickly it would have been an "ok" option yet because I had some cashflow to do some repairs and stage it the decision was easy - that was a hard no. We sold it for 25% higher than what we were offered.
The other end of the Spectrum is the highest possible net no matter the investment. This is also not for everyone. Maybe the home is paid for, in good condition, and vacant. Some minor repairs and staging could be the investment that allows you to net 10-30% more than a quick, cash offer with only 45-60 days longer to close.
At the end of the day, it's good to know you have options, right? How to weed through all the advertisements and radio ads and billboards to know which one is truly right for you is complicated. We have relationships with these iBuyer companies both locally and across the nation. We have stagers, contractors, organizers locally that can do staging and repairs to present the home in it's best possible light. We have lender contacts and spreadsheets and calculators that can help analyze the numbers for our individual sellers to determine their spot on this Spectrum. There's a good chance your spot is somewhere in the middle.
We spent a lot of 2020 building relationships and making connections. We all spent 2020 at home, isolated in whatever form of isolation you were comfortable with, wearing masks and figuring out how to manage zoom. COVID changed everything and for many resulted in a move...either to relocate out of major cities, or because of a job, or to have more space because well let's be honest; kitchens, bedrooms, closets all became offices during 2020. COVID changed what was important to have in a home but not that importance of a home. Working from home definitely had its challenges but thanks to technology we've been able to stay connected, redefine work, and improve systems. As you consider your 2021 plans we hope you remember that what truly makes a home a home are the people inside. This year we look forward to continuing to focus on all things home! We are here for you and truly want to help in any way we can. Conversations and consultations are free! Where does your situation fit into this Spectrum - what do you need to know?