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The concept of Instant Buyer is often confused with that of House Flipper, even though the two operating models are different.
The House Flipper business model involves the acquisition of properties at a very low price and putting it back on the market at a significantly higher price, with a high profit margin. To do this, house flippers mainly deal with properties in very poor condition, which require major renovation work, or they interface with clients willing to accept a price much lower than the market value, just to have liquidity. immediate.
To increase their business profits, house flippers don't just turn to private individuals to buy properties. In fact, they focus on properties that allow a strong profit in the resale phase. An example of these are judicial real estate auctions, which have always been populated by investors, which offer these types of opportunities.
On the contrary, Instant Buyers work with all types of properties—in most cases, these are properties in good condition!
Realities like Casavo do not carry out their transactions with properties sold at auction or by managing non-performing mortgages: Instant Buyers want to offer a solution to anyone looking for a fast, safe and alternative way to sell their home.
And it is; This is why Casavo, in addition to offering an immediate property purchase service, has decided to make available, on its website, to all interested parties, an instant property valuation algorithm - to simplify the life of those selling a house!
Even from the point of view of the economic offer, Casavo does not want to force owners to sell their house at a discount. The objective, in fact, is is to propose a purchase offer in line with the price a buyer would be willing to pay for the property. The discount rate, which in the case of Casavo is around 8% percent, does not represent a devaluation of the house: it corresponds to a hypothetical “cost” of the service offered to those who want to sell within a certain time frame and without stress. The properties purchased by Instant Buyers are then put back on the market, after having carried out some maintenance and renovation work.
Why? Doesn't the 8% discount mean selling your house at a discount?
Let's imagine that a private individual decides to rely on the traditional market for the sale of his property. After having estimated the market value of the property (which we assume is 100 in this case), he will put it up for sale with a slight premium (and therefore with an asking price of around 108, in this case).
Over the course of about 7 months during which he will host If there are more than 20 potential buyers in the house, the seller's asking price will drop by approximately 10% and he will therefore be able to sell his property, after 7 months, for 97. From this figure we should also subtract the costs that the seller will have to pay for any improvement work, for promotion, for costs related to documentation and any commissions. We are talking about a further 3%, which negatively affects the seller's revenue, reducing it to around 95.
C’è Another aspect that you may have never considered: have you ever wondered who really pays the buyer's commissions? The seller!
Let's imagine that a buyer has a budget of 100 for the purchase of the new home. If he didn't have to spend 3-4% on costs and commissions related to the purchase, he could pay 100 for the new property, instead of 96. This translates into a loss of profit for the person selling the house!
If the seller instead decided to sell to Casavo, in less than 30 days he could close the sale. The proceeds would be slightly lower, as they would be around 92 – The requested discount corresponds to the cost of the service that Casavo offers: only two home visits, guarantees and transparency in terms of timing and offer, support throughout the process.