Gray Fox Realty is always studying the real estate model landscape and looking for opportunities to educate the buyers and sellers in our local market here in Williamson County, TN. That is why we made this video on a few new products offerings in our market.
We want to discuss these new real estate models that you are likely seeing on ads during the evening news and even ads on facebook and direct mailings. One of the models is also being called the iBuyer model. Lets look into that situation first. the iBuyer model is a model where a large company with access to deep reserves and investor capital is buying your home and then with minor updates/upgrades if needed returning your house to the market for sale. The market that we are in can’t support an inflated sales price when it returns to the market as a listing now vacant being sold by the investor company so how are they making money. Well simply there offer is complicated and likely involves fees that cost the seller. They market no stress home selling but wouldn’t it be stressful to sell your home with steep fees, giving away the equity, only to have it placed back on the market for sale within 30 days and watch it sell to someone that could have been the very buyer that you could have sold to a fair market value. Maybe that logic makes sense compared to a traditional real estate brokerage that is also charging 6% or more fees to the seller to effectively market and sell your home. But not when compared to Gray Fox Realty. We list and market homes for only $995 an at closing there is a $395 fee and a 3% commission to compensate the buyer’s agent for binging an ready, willing, and able buyer to the transaction. What we have heard is that the fees can add up to 6% or even 6.5% and they are also asking for cosmetic repairs to be made or allowances be made for such with their offers. We are in a market where inventory is still quite low at 2.6 months right now in Williamson County, so even if you do want a quick sale the odds are that in this market you can get a fair market offer promptly. Selling your home to an iBuyer means that you are likely going to be paying a lot of fess to sell your home so we encourage yo u to take a look at the seller net, or in other words what is your walk away money. Once you see your seller net from an iBuyer offer and you compare it to a fair market offer that Gray Fox Realty could get you with our aggressive marketing and with a flat fee structure we think you would agree that Gray Fox Realty helps you Keep The Equity. The iBuyer business model is not in the market to lose money and they are diving into various avenues for generating revenue. They will be players in the mortgage, title, home inspection, home warranty and other auxiliary businesses that all have revenue from the real estate transaction. They are making fast movement into the markets that they enter and are buying multiple properties a day. Our concern is for all these sellers leaving equity on the table and turning it over for this so called low stress sale. I have looked and on average the homes in the local market that they are turning back to the market for sale are 105% higher list price than the recorded purchase price. What is not known is the total of the fees and repair/improvement allowances that the seller paid. Obviously there is no money to be made for holding about $30 Million in assets in our market selling the asset for 5% over the purchase price when they have carrying costs (utilities, taxes, etc) and they had taxes and fees at acquisition and they have costs for selling like the 3% buyers agent fee that they are paying on the new sale.
Another model that is the Guaranteed Offer to buy a home from the real estate brokerage. This of course comes with some rules and restrictions which according to TN Real Estate Commission have to be disclosed on the ad and to this point I don’t see that happening. At any rate, I think that this is just simply a lead generation model so that the real estate agent can get an in-home consultation meeting with the sellers. The ethical issue is if they are sharing the most accurate comp data with a seller if they also have an intention to buy the property. As a seller you should be concerned about an offer to list or buy your home as they true intent is not clear in their findings. At Gray Fox Realty we are focused on helping you sell your home and with our plan we help you Keep The Equity in tow ways. One is that we provide a sophisticated method of comping your home to get a true fair market value and the second is that we have a a flat fee listing at $995 to help you save almost 3% compared to a 6% listing agreement.
We are always open to new and innovate solutions to the real estate model but wanted to share our thoughts on these two new models entering the Nashville market as we thought that their offering does not compare to the Gray Fox Realty Keep The Equity model. Therefore, we encourage you to talk to them but also chat with us about an in-home consult and get a seller net from both to consider the options based on the merit of how much money will help you keep.