We use cookies to enhance your browsing experience and deliver our services. By continuing to visit this site, you agree to our use of cookies.More info
Ken Schwartz Real EstateKen Schwartz Real Estate
Call Us:

858-500-2195

Message Us:

[email protected]

  • Meet The Team
  • Read Our Blog
  • Success Stories
  • Our Current Listings
  • The Seller Experience
  • Sell My Home
  • Get Cash Offer
  • Get Your Home's Value
  • Sold Gallery
  • Search Homes for Sale
  • The Buyer Experience
  • Contact Us
    • Call Us:

      858-500-2195

    • Message Us:

      [email protected]

    Featured Image

    The Hidden Costs Of Selling Your Home The Silicon Valley Way

    Getting your home sold in just one day with multiple offers might sound too good to be true, but these days there are many...

    • Ken Schwartz
    • April 22nd, 2019
    • 6 min read

     

     

    Getting your home sold in just one day with multiple offers might sound too good to be true, but these days there are many start-ups and tech-backed companies promising to do just that. They guarantee a sale in a certain time period, buy the house directly from you, or offer a platform where you accept and review online bids from buyers.

    It sounds like a dream come true, right? Unfortunately, it doesn’t always work out and has some serious hidden costs.

     

    Hidden Cost #1: Low-Ball Offers

    The main reason why most sellers choose to list with a real estate agent is to maximize the value of their homes, and the data backs this up. According to NAR, the average “For Sale By Owner” sales price is significantly lower ($185,000) than the average price of a home represented by an agent ($245,000). This is because a real estate agent who is immersed in their local market understands how to price a home properly, utilize staging to show off the home’s best features, make expert recommendations on any fixes that could be made to get a higher value, and negotiate with the buyer’s agent so you don’t end up cutting the price in order for the buyer to commit.

    For flat-fee platforms, the offers you receive depend on how many people can actually see your home. One reviewer reported getting few showings and only receiving one offer, which was well below other properties in her neighborhood.

    “I got fewer showings than any other house and the only offer I got was WELL below my [asking price]. Other houses in the neighborhood (smaller and less maintained) sold for over my asking price with other agencies.” -   Purplebricks Customer 

    With companies that offer to buy your home outright, you may not receive the full value of your home. Even worse, you may not even receive an offer at all. For instance, your home could fall outside of what their algorithm deems valuable, like if your home was built before 1960. If you’re okay with losing out on potential profit or receive an offer you want to accept, you still have to consider fees. Though your fee will vary, the average is around 8-9%, which is more than the average real estate agent fee. 

     

    It doesn’t stop there. One seller reviewing their experience with Opendoor reported being hit with repair costs and other hidden fees, including $8,000 in fees added an hour before he was closing on his property. Another seller reviewed their experience with Opendoor and shared how an inspector stated it would cost $200 to replace 3 light bulbs in their home.

    “All in all, the inspection added up to about $12,000 in ‘repairs’ which would have caused us to walk away with almost no money after the closing fees…  The estimated cost of repairs were absolutely insane. For instance, the master bedroom has a ceiling fan with 4 light fixtures... The inspector took photos of the 'missing' bulbs, and estimated it would cost $200 to replace them.” -   OpenDoor Customer 

    Hidden Cost #2: No Human Contact

    If you’re the type of person who lets every call go to voicemail, this problem can sound like a positive. But consider the fact that when you sell your home, you’re probably going to want someone to call if your listing contains a bunch of errors and takes six weeks to show up on their website. Even worse: when any messages you send about those issues go unanswered. 

    When selling to a company that buys your home outright, the relationship can end as soon as you accept their offer. One seller who reviewed her experience with Opendoor detailed how she was charged $400 to take the trash out of her house.

     “In the end, I lost out on a good $20,000 - $40,000 on the house alone, plus another $7,500+ for false claims of repairs they said they had to do (which in reality I had fixed on my own already so they had nothing to do).”  - OpenDoor Customer 

    Hidden Cost #3: Unexpected Surprises

    The main issue a seller will run into is a lack of one-on-one representation. For example, when you list with a service like Purple Bricks that promises to sell your home for a flat fee, you’re matched with an “area expert” who may be stretched for time. 

     “My property was on the market for 90 days and had just 6 viewings. I withdrew my property and instructed [a local realtor].  T hey listened to the feedback and took on board that the price was too high. Within 11 days they had shown a total of 36 people around my property and 3 offers came in. My house has now sold.”  - Purplebricks Customer 

    Another seller wasn’t so lucky. Over the course of eight weeks, their first agent was fired, then the next four quit within 1-2 weeks of the other, and another never even called.

    Further, a real estate agent markets your home beyond simply hanging a sign in front and placing the listing on a website. When going the alternative route, if you don’t have an “expert” who is willing to do more than upload photos, you could end up having to do things like distribute flyers about your own home. 

    When it comes to services that offer to buy your home outright, the relationship between you and the company can be minimal. One seller’s Opendoor experience highlights how this can become an expensive problem. The roof repair experts hired by the company left her home without completing the project. She was later charged $21,000 for the repairs and said that she was not able to negotiate with the company.

     “On top of the $26,000 upfront fee, they tried to charge me $21,000 for ‘repairs’. They refused to negotiate anything, and now I have to pay an attorney for the ‘assessment’ process.”  - OpenDoor Customer 

    In the end, the “Silicon Valley” way of selling a home isn’t for everyone. If you’re thinking about making your next move, start by getting in touch with a real estate agent to learn more about what you can expect from the selling process.

    Author Photo
    About the author

    Ken Schwartz

    8585002195
    • facebook
    • X
    • instagram
    • linkedin
    • youtube
    Since 2008, I have been helping clients reach their goals, and doing so in the most professional fashion possible. I graduated with a Bachelor’s Degree in Mechanical Engineering from the University of California at San Diego in 2008. After working in the field for a short time, I found my true calling in Real Estate. My ability to talk with people and problem solve made real estate a perfect fit for me. I obtained my Real Estate License in 2008 and have worked in the industry ever since. My previous experience includes Property Management and helping clients Buy or Sell their home. In 2012 I received my Real Estate Brokers license and have recently joined the team at CENTURY 21 Affiliated. When I'm not out selling homes, I love spending time with my wife and 4 french bulldogs. I also play in an adult baseball league, which helps fulfill my competitive nature. Having played baseball in high school, it is a great extension to my glory days. Thankfully San Diego has such great weather, we can play year round. My expertise in the San Diego market and the outstanding resources of CENTURY 21 Affiliated give my clients the satisfaction that I can provide them the best quality service out there. A Real Estate transaction can be a stressful time, but it doesn't have to be. We do everything we can to make it as smooth as possible, while delivering our clients the best value and helping to build their personal wealth.

    Similar posts like this

    Minimalist, Maximalist, or Somewhere In Between? Here’s What Your Home Style Says About You in San Diego

    What does your home style say about you? Discover how minimalist, maximalist, or in-between spaces reflect personality—a...
    Read more

    The Step-by-Step Guide to Getting Your Home Ready to Sell in San Diego

    Feeling overwhelmed by the idea of selling your home? This clear, step-by-step guide walks you through what to do—and wh...
    Read more

    Open House vs Private Showing: Which One Gets You the Advantage in San Diego?

    Trying to decide between open houses and private showings in San Diego? Learn the pros, cons, and strategic timing that ...
    Read more
    Ken Schwartz Real Estate

    Ken Schwartz | CA DRE #01854235 | NMLS 2461429

    2020 Camino Del Rio N. Suite 800, San Diego CA 92108

    2020 Camino Del Rio N. Suite 800, San Diego CA 92108

    Call Us:

    858-500-2195

    Message Us:

    [email protected]

    Footer Links

    • Meet The Team
    • Read Our Blog
    • Success Stories
    • Contact Us
    • Get Your Home's Value
    • Marketing Strategy
    • Search Homes for Sale
    • Mortgage Calculator
    Privacy Policy

    Ken Schwartz | CA DRE #01854235 | NMLS 2461429 © 2025

    Powered by