CPO in depth
Take The Stress Out Of Selling
Welcome to the evolution of real estate: CPO or Certified Pre-Owned
The CPO process, whether you choose to fund the traditional CPO, or choose our Cash CPO program is extremely valuable for ANY home seller - and we can show it is less stressful, brings more money, and is clearly the best way to sell a home. Homes that are not prepared properly through the CPO process sell more slowly, drop out 30%+ on average during the contract period leaving you with a 'stigmatised' listing. Of course, if you would simply like to list your home in the traditional way, our experts are all in the top 2% of agents in the country. Find your top agent here.
It is especially valuable for those going through a divorce, considering moving to assisted living, thinking about retirement, facing foreclosure, or handling their family estate on the loss of a parent. Perhaps you are concerned about all the preparation and legalities as a For Sale By Owner (FSBO). It's also perfect for those planning to move to assisted living, or relocating.
Three stage process, before the home is listed:
Depending on which program you choose (see different programs on drop downs above) you can choose to Certify Pre-Own your home with no cost upfront, through the Cash CPO program, or a Traditional CPO, where you fund the inspection and other items, although you can choose to simply disclose rather than fix anything. Buyer's agents prefer to show CPO homes. It saves them time, and gives them peace of mind that the home is more likely to be a good fit for their clients and close.
Buyers prefer a CPO home, with the issues dealt with upfront.
Car companies Certify their product for $20,000 cars. Why do we think that it's 'normal' to market a home without offering a pre-inspection, or using an agent to price a home? Or pricing a home by 'what money we have in it'? And then there's the issue with the contract process, when you have packed boxes and planned the move.
In old-fashioned real estate, homes go under contract, then most often a re-negotiation happens at the time of inspection, and often again when the home is appraised by the purchaser. CPO puts sellers back in the driver's seat with full knowledge of the property they are selling, and in a better place to make more money and sell faster.
The average inspection turns up 40+ items that need repair. At this point, you have to renegotiate the terms of your offer.
Most buyer's agents will request a licensed contractor to make any repairs.
OR they will choose to leave the deal.
OR they will choose to ask for thousands of dollars as a credit for the buyer to make the repairs.
Our sellers spend an average of $250 fixing upfront, or they are handy and make minor repairs themselves.
The Marketing Appraisal
Imagine the peace of mind you are offering the buyer, purchasing a home that has an appraisal in place. We have been using this approach since 2007, and none of our CPO homes has not appraised when the buyer attempts to get a loan. Our CPO experts sell more homes than most any other teams, so this says something about our approach!
Home ownership can feel like a stretch - particularly in the first year.
A home warranty, or a home protection plan, is a one-year service contract that covers the repair or replacement of home system components and appliances that typically break down over time. A Home Warranty can:
Protect your budget from unexpected, covered breakdowns
Give access to a network of qualified contractors
Make requesting service easy either online or over the phone—24 hours a day, 365 days a year
The Home Warranty generally covers the seller for many items that fail during the life of the listing
Does your agent offer the CPO Program?
The CPO experts foundation was created by Rowena Patton of All-Star Powerhouse, and she has taught the approach to thousands of agents around the country. We have hundreds of CPOexperts at this time. The program is from her best seller on selling homes. Find your top agent today.
Are you an agent offering the CPO Program?
CPOexperts offers regular coaching. Check out Agent Plans to see if your zips are exclusively available to you for Cash CPO.
FSBO - CPO Program
We will be happy to put you in touch with our professional Appraisers, Inspectors and Home Warranty companies who are familiar with the CPO program. Use our contact form for more information. Should you choose the Cash CPO full market value offer option, all of this is done for you, and they provide the upfront funding for repairs and the appraisal and inspection.
Average Costs - for a Traditional CPO
These costs may vary, and there are no upfront fee with the Cash CPO program
depends on size of home / property. Extremely unusual for a home not to appraise in the loan process when an appraisal is attached to the home.
Inspection $300-$500 -
depends on size of home - If the buyers choose to have their own inspection their findings should be minimal. Not likely to be a hurdle. You can fix items with time on your hands.
Home Warranty -
depends on level - $450 - $600. This is generally paid at closing and the home warranty usually covers you throughout the listing period.
When do we pay as a seller? (our Cash CPO program has no upfront costs)
Appraisal and Inspection fees are paid directly to the provider when they are conducted at the commencement of the listing. The home warranty is paid for at closing on behalf of the buyers. The home warranty usually covers the seller - with a call out fee - for many items that fail during the life of the listing.