Preferred Real Estate Agents

Real Estate Agent Vs. I-Buyer For a Quick Sale!

 

 

Thinking of using an I-Buyer (Internet, Investor, Instant Buyers, who will buy your home site unseen) for a quick close?

Well you may want to think again. The reason is the hidden and not so hidden costs that can cost you over 40% of your equity in the property. These companies include Open Door, Zillow, Offer Pad, Knock, Redfin and others. Chicago Title Company has developed an App available from your App Store, that compares the costs associated with I-Buyer and the costs of selling through a Real Estate Agent/Broker. I should also point out that a Real Estate Agents are licensed and highly regulated by the State of California and the Federal Government. Governed by a long history of real estate law and consumer recourse protections. Currently I-Buyers are not regulated. See below a typical home sale for comparison. This example was generated by Chicago Title's free App. It is a comparison of the costs associated for a home sale with a Real Estate Agent/Brokerage and with an I-Buyer company. Hopefully you will find it informative and may save you a lot of money.

Usually a well priced maintained home will remain on the market currently on average of 50 days with a real estate agent and it can take only a week to10 days with an I-Buyer. Which, I understand can be a real advantage to a seller! But at what cost? Let's see what this advantage actually costs. Comparing the selling costs of a home with an estimated market value of $425.000.00, a $255,000.00 existing mortgage using both methods. Below find the projected costs associated with both types of sales based on Chicago Title Co.'s App for a California home. Using the identical home in the same county. Using the App side-by-side results may vary even within the same market value. Please, understand closing costs do vary from county-to-county depending on variations in property tax rates, transfer tax, as-well-as other costs.

Comparison Based on Typical Costs*

 

Real Estate Agent

Home Value Price: $425,000 Market Value

Existing Mtg.: $255,000

Closing Costs: $2,285.50

Prorated Taxes: $4,175.85

Selling 6%Commission: $25,5000

Service Fee: $0.00

Repairs: $1,000.00*

Holding Costs: $2,507.27

Final Net to Sale Seller: $134,531.38

Net Gain Difference to Seller: $56,212.78 or +41.78% more cash than with the I-Buyer!

Is getting the money a month or two early worth leaving $56,000+ on the table? If a property is priced well, it will move quickly and with often with muliple offers to determine the actual market value of the home!

*Repairs are bid out or negoiated with buyer. With the I-Buyer tells you pay what they think the repairs will cost and at the last minute, just few days prior to close. More often than not, they have not seen your property. But their contract allows them to charge for repairs and also if they need to hold the property longer than they think, there is a fee for that too. Who knows how long is the "hold time" or the exact cost. They decide at that latter date weeks or months latter?

 

 

 

 

 

 

 

 

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I-Buyer

Purch. Offer 90% of Market Value: $382.500

Existing Mtg.: $255,000

Closing Costs: $3,050.05

Prorated Taxes: $3,492.00

Commision: $0.00

Service Fee (7% to10%): $28.687.50 (7.1%)

Repairs: $13,397.50*

Holding Costs: $564.35**

Final Net to Seller: $78,318.60

*The I-Buyer will often spring repairs at the last minute when it is too late, within days of closing.

** Holding Cost is a fee if it takes longer to resell the home and they could claw money back from the seller days or months latter.

If you choose to go with an I-Buyer make sure you and your attorney reads the contract. As Dylan once said somthing like "...robbed with fountain pen..." In this case it is the contract!

I-Buyers are not regulated unlike Real Estate Brokers/Agents, where you have consumer protections. Also, where all your costs are fully disclosed ahead of closing by the Real Estate Agemt and Title Company.

 

 

 

 

 

 

 

 

 

 

 

 

 

*This comparison is solely based on Chicago Title's database of typical historical closing costs that I-Buyer has charge to buy a home, and home closing costs sold by licensed Real Estate Brokers/Agents. The comparison was generated by the title company's free App available at App stores. This App demostrates dramatic differences in proceeds form sale any value of home to the seller. Just enter the state, county, and market value of the home and the App does the rest, plus providing answers to other real estate related questions.


Preferred Real Estate Agents

The real estate agents listed here are rated at the top of their profession. They are known to provide excellent service and are knowlegeable about the cities and towns they service. They are all licensed by CA BRE and adhere to the highest industry standards. Please let them know that Jaren Dahlstrom, the CA Mortgage Advisor referred you. If you don't see a real estate agent I can find one for you or come back soon. I am adding realtors all the time. The location and phone number are listed on right side of page and just scrow down till you fine the town or county your going to be buying a home.

  Derek Han

BRE #01738860

Top producer, Realtor, CDPE

 

Serving Alameda and Contra Costa Counties, CA

Better Homes & Gardens Relance Partners, 2095 Rose Street, Berkeley, CA 94709,

Direct: 510.947.6598, E-fax: 800.897.1686

 

 Pablo Durango

BRE #01335945

Great Real Estate Agent, Spanish/English

 

Serving West Contra Costa County (El Cerrito and Richmond, CA)

Direct: 510.685.6146 , E-mail: pablo_e_durango@hotmail.com

 

Michael Crawford

BRE #01905845

Buyer Agent, Listing Agent, Relocation Consultant

Serving Lake County , CA

Country Air Properties, 901 Main Street, Lake Port, CA 95453

Direct: 707.998.5904, E-mail: michael@countryair.com

 

Paul Talbot

BRE #01905663

Buyer Agent, Listing Agent, Foreclosure, Consulting

 

Serving Berkeley and Alameda County, CA

Better Homes Gardens Masson McDuffy, 2095 Rose Street Suite 100, Berkeley, CA

Direct 510.674.0675. E-mail: paultalbothomes@gmail.com

 

Zedenka Mahan

CA BRE 01434045

Buying Agent, Listing Agent, Property Management, Speaks: English, Russian, and Polish

 Saratoga and Silicon Valley and Santa Clara County

Intero Real Estate Services Berkshire, 12900 Saratoga, CA 95070

Direct: 408-514-5125, E-mail: zmahan@interorealestate.com

 

 Carltom Randle

BRE: 01337907

Buyer's Agent, Listing Agent

Serving San Joaquin, Eastern Contra Costa and Alameda Counties

VVS Reality, 696 Landmark Point, Lathrop, CA 85330

Direct: 510.417.3191, E-mail: crandle@vvsrealtyinc.com

 Timothy Pantle

BRE: 01377493

Buyer' Agent, Listing Agent, Short Sale and Consultaing

Serving Fair Oaks, Sacramento and Sacramento County

Coldwell Banker, 5034 Sunrise Blvd., Fair Oaks, CA 95628

Direct: 916-864.8657, E-mail: timothy.pantle@cbnorcal.com

 

Luis Manuel Maurtua

BRE: 01327891

Buyer' Agent & Listing Agent

Serving Stockton , San Joaquin , Eastern Contra Costa and Alameda Counties

1439 Briarwood Way, Stocton, CA 96209

Direct: 209.518.5673, E-mail: manuelmurtua@att.net

Jerry Sellers

BRE: Please Contact Mr. Sellers

Buyers' Agent & Listing Agent

Serving the Auburn, Grass Valley, and Nevada City and El Dorado County

821 Aurburn Ravine Rd., Aurburn, CA 95603

Direct: 916.871.8801, E-mail: vintagehomeguy@gmail.com

   
 

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  Copyright 2016 Jaren Dahlstrom, All Rights Reserved -- Jaren Dahlstrom, Loan Officer, CA BRE 01358563, NMLS 237999 -- United Lendinging Partners/United Realty Partners BRE #02012818, NMLS #1525816