You may be wondering how as a real estate agent we are able to guarantee closings. Well it's a combination of a few factors.
Capability for Repairs: Since we have our own in-house contractors we can help you handle pretty much any repair issue that becomes a deal breaker for the buyer. But we will do our best to anticipate and disclose any potential deal breakers with the buyers when they make the offer by having a property inspection as part of the listing process. Nevertheless, whatever comes our way after the inspection we can handle it together. Financing for those repairs is also available.
Buyer financing problems: as a team of experienced agents we have a pretty good idea of the three values for your property. Appraisal value is the price put on it by comparing it to similar sold houses based on square footage. Market value is the price buyers will pay and is typically based on what options they have at that point in the market. Wholesale value is the price at which an investor or flipper will buy it where they can make a fair profit by improving it and selling it at an improved market value. When offering you the guaranteed closing we will establish a wholesale value. Consider this your backup offer throughout the listing process. If we list on the market for a reasonable time we will find a buyer who will pay market value, but if you want to move sooner, or at the last minute the buyer leaves you with just their deposit then we could always close with our wholesale buyer. Even likely on time.
This allows you to relax and move with significantly less stress. You can make an offer on your new house that's stronger because it doesn't have to be contingent upon the sale of your current one.
Flip your home with us: Sometimes I will see a property at a listing appointment and its clear the seller could increase market value by $20,000-$40,000 just by renovating the kitchen or the baths. Sometimes its the yard that holds back the value, or a combination of needed repairs. Don’t let the cost of a renovation hold you back. Galvanized Management has a team of capable contractors who can help you fix up the house so you get a greater return on your investment. And we can offer financing to make it affordable, in some cases taking payment out of the proceeds at the sale. Don’t want to get into the difficulty of managing a large project? We have an option for that too!
How it works: When we see the house we can discuss this option, but step 1 is determining market value and getting a good idea of appraisal value so that together we can develop a strategy. This is also when we would inspect the house. Step 2 is to determine a wholesale value and get it approved by our financial partners. Step 3 is an addendum that will be added into the listing agreement. If you decide to take our wholesale option it will take about 2-3 weeks for the title search to be completed. If you are already under contract and the title work has been started the process can be much much faster.
Why should I care: In Fall of 2021 I sold Aileen and Billy’s house. Even though I am an experienced agent and helped to make the transaction as calm and smooth as possible it was still an extremely stressful transition for them. We found a house, got it under contract with a contingency of the sale of their home, negotiated repairs, negotiated price after the appraisal, and extended closing because the buyer for their first home had to extend as well. On the day of closing the tension was so thick you could cut it with a knife. We closed on the sale, then went to another title company where we closed for the purchase. Aileen and Billy had to go on a vacation right afterwards just to relax. Why were they so stressed? They didn't know if the buyer would screw up the financing, or if the house didn't appraise, or if the buyer lost their job, or if they asked for some unreasonable repairs post-inspection. If any of these issues came up (and some of them did) it could throw their whole move into jeopardy. We offered on 5 houses before their dream house got its offer accepted.
If Aileen and Billy were able to accept a backup offer that would close on or before the close date of the offer they accepted they would have been packing their belongings knowing for sure they were going to be able to move into their dream home. There would have been no question.
This Closings Guaranteed program was built with Aileen and Billy in mind. Of course they got more $ by selling at market value, but they knew there was no plan B. If the buyer decided to walk away then all they’d have is a $5,000 deposit and the ability to put their house back on the market. But that would throw their purchase into jeopardy and all their belongings were sitting in storage containers and a moving van. If they had the option of accepting a wholesale offer and still close on time they could have walked through that transition with head high and shoulders free of the incredible worry. Sellers and buyers walk through transactions like this every day and it is common, but if you want peace of mind and the ability to relax through your sale, then let's talk and get your other questions answered.
Not every seller can afford to sell at wholesale. In those cases this guarantee extends just to the first few points that we can make sure the house is in acceptable condition for the buyer.
*this does not fully apply for buyers or in extreme circumstances. Must be listed with GMG agents to apply.
Galvanized Property Management
906 Route 940, Suite 106, Pocono Lake PA 18347
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