What to do now that Zillow, Open Door, & other iBuyers in Nashville have cancelled their offers?
It happens about every 8-10 years — the economy, the stock market, & the real estate market have to correct themselves. There are a lot of indicators that this time is much different than the last downturn back in 2008, but, nevertheless, the corona virus was the trigger & here we are, again, wondering what’s going to happen with the real estate market. You may be trying to figure out what to do now that Zillow, Open Door, & other iBuyers in Nashville have cancelled their offers?
Back in 2008 housing prices dropped almost 50% in some areas. Inventory was high and it quickly became a buyer’s market. Right now there is still a shortage of inventory, so it is still a lucrative time for sellers.
What to do if you had an offer on the table from one of these companies?
Working with an iBuyer can be very convenient since you get to choose the closing date. But what happens when you make plans to move and they rescind that offer? You’ve probably already found a place to move; perhaps you’ve put down deposits or even have a contract to purchase another house! You may be on a tight deadline, so here are some suggestions:
1. Sell to a local cash investor. Local cash investors are still buying, however, they are buying at a discount. If you have some equity built up & you can accept an offer for lower than full market value, then this is the easiest option. You don’t have to deal with showings & fees and you can still choose your closing date. If you have a high mortgage balance, this option may not work
2. Let us market the property for you. Our buyer’s list has 350 active buyers who are currently looking for homes in the area. We are active in several agent-only forums that has access to several thousand active buyers. This in addition to the MLS gets you offers very quickly. These offers are going to be much higher than an investor offer (usually close to or at full market value). With the Corona virus, this can all be done with professional photos, video tours, and very minimal showings (sometimes we only do one showing on a weekend and require all buyers to come during that window). Some of these buyers are cash & some are financed so the closing could be anywhere between 15 & 45 days. The best part about this is we negotiate on your behalf to get you the best possible offer. Our fee for this is 6%.
3. Rent your property. If you have the stomach for being a landlord & you have time to pre-screen potential tenants, this may be a good option. You may have trouble finding a well qualified tenant since there were more than 3 million unemployment filings last week alone so be prepared for it to sit vacant for a while.
4. Wait for iBuyers to start operations again. This could take a few weeks or a few months. It’s well documented that most companies like Zillow & Open Door have been posting massive losses in their acquisitions departments for the last few quarters so this may be later rather than sooner.
Every seller’s situation is different and the right answer may be different for each person. Weigh your options carefully and feel free to reach out to us for a consultation. As licensed agent/investors, we have a unique perspective from both sides & we’ll give you an unbiased opinion based on your specific needs. Agent/investors are held to a higher standard than an unlicensed investor, so you can expect to be treated in a honest and ethical manner. When you’re thinking about What to do now that Zillow, Open Door, & other iBuyers in Nashville have cancelled their offers? You can Call or text us today 615-905-0039.
What to do now that Zillow, Open Door, & other iBuyers in Nashville have cancelled their offers?
