Intro:
“Thanks for sharing your home selling goals (provide feedback on what they shared with you). Before discussing listing your home on the market, would you mind if I briefly present some cash offers and options I have available for you?”
Example 1:
“I would like to introduce you to the Cash Plus Offer. This offer represents the full market value of your property in cash. Let's look into the details. (open details)
One of the primary advantages of the Cash+ Offer is you won't have to leave too much money on the table. Additionally, you have the flexibility to choose your closing date.
Once you accept the offer and go under contract, the Cash Buyer will conduct a home inspection, and upon closing, you'll receive an initial payout. The remaining amount will be provided when the home sells on the open market.”
Example 2:
“This full market cash offer gives you a guaranteed initial cash payout, hopefully getting you enough funds for it to make sense.
The property will ultimately be resold by the Cash Buyer and I will be the agent representing them, ensuring that it sells for the highest price possible so you don’t leave any money on the table. Let me explain what that looks like...”
Let's try another way to explain it (if needed): “Imagine we decide to sell your property on the open market because it's the best option for you. I list it, and it sells for $10k less than the buyer's offer. In that situation, it might seem like you've lost $10k. However, think of it this way: the fact that the property sold for less means that the buyer's offer was actually higher than what the market was willing to pay. So, even though you didn't get the full amount, you still benefited because you got the highest possible price given the market conditions. It's still a win for you in the end, even if you don't realize the full amount initially.“
Explaining the Fees and Reserve
Program Fee:
"This is a fee-based offer. The Cash Buyer does charge a Program Fee of 6%... They’ll close, pay your mortgage off, get you the funds up front, and take title. The program fee covers all holding costs which include utilities, HOA payments, property taxes, property insurance, and maintenance etc. So in a scenario like this, you can wipe your hands clean and wait for the second payout. That's another reason this offer stands out—it doesn't require giving up equity; instead, the Cash Buyer just charges a fee.”
Agent Commissions & Resale Closing Costs:
“The next item below is pretty straightforward. It’s called Agent Commissions and Resale Closing Costs. It pays the Realtor the commissions that are part of the transaction. And since it’s going to be listed and resold, it helps cover some of those additional title and escrow fees that are going to be incurred.
Before I go to the next part, which is how you’re tied to the resale, do you have any questions so far?”
Reserve:
“Perfect, the third part of this offer structure is called a Reserve. The Reserve is a portion of your available equity that's set aside until the property is resold. So in this example...
When you agree to sell your property to the Cash Buyer for a certain amount ($), you can move out once the deal is closed and you've received your initial payout. While you‘re living in the comfort of your new home, the Cash Buyer and I will work on reselling the property. If we resell it for the same price, the Reserve will be fully refunded to you.
Let's say the property sells for $10k less than what the Cash Buyer offered. In that case, the $10k would be taken from the reserve (the second payout). But here's the cool part: whatever's left in the reserve after that deduction is still returned to you!“
“Now, here's why sellers often love this setup: if the property sells for more, not only do you get back the reserve, but you also get the extra profit! That's where the real benefit kicks in.”
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