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Welcome to the Evolution of Real Estate: Certified Pre-Owned Homes

 

Remember how homes have traditionally been sold?

 

  • Multiple showings.

  • Keeping the home show-ready.

  • Going under contract.

  • Then holding your breath while inspections and appraisals happen.

  • And too often, watching the contract fall apart a third of the time.

  • For decades, this stress has been treated as normal. It is not.


Certified Pre-Owned Homes, or CPO Homes, were created to fix what was broken in the traditional home selling process.
 

Why Traditional Home Sales So Often Fail


In traditional real estate, the sequence looks like this:

 

  • List the home

  • Negotiate an offer

  • Go under contract

  • Then inspect and appraise

  • This is the point where many contracts fail.
     

Historically, more than a third of contracts fall apart during the inspection and appraisal phase. When that happens, the listing becomes stigmatized. Other agents ask what went wrong. Buyers hesitate. Price reductions often follow.


The stress is real. Movers are booked. Schools are chosen. Life plans are made. And everyone waits to see if the deal survives.


We always knew the cause.


The inspection and appraisal came too late.


The Insight That Changed Everything

In 2006, after a difficult start in real estate, after retiring as a management consultant, Rowena Patton questioned why this chaos was accepted as normal.
 

She looked at another industry.


The automotive market certifies pre-owned cars. Cars that cost $20,000 are inspected, documented, and backed before being sold.


So why were homes, often worth hundreds of thousands or millions of dollars, sold without that same level of preparation?

 

That question led to the Certified Pre-Owned Home model.

 

The Old Way Versus the CPO Way
 

The Old Way

  1. List the home

  2. Negotiate the offer

  3. Go under contract

  4. Lose the deal one-third of the time

  5. Explain what went wrong

  6. Deal with stigma and stress
     

The CPO - Certified Pre-Owned Way​

  • Inspect the home first

  • Disclose or fix issues upfront

  • Optionally appraise before listing

  • Optionally include a home warranty

  • Market the home with full transparency

  • Buyers and sellers move forward with eyes wide open.

    What is a CPO Home
     

A Certified Pre-Owned Home is a home that has been professionally prepared before it is listed for sale.

​

At its core, CPO means:
 

- The seller pays for a professional inspection
Items are fixed or clearly disclosed
- Time is available to get fair repair estimates
- Buyers see the true condition before offering

For premium Certified Pre-Owned Homes, sellers may also include:

- A pre-listing appraisal
- A one-year home warranty

This combination is often referred to as the CPO trifecta.


Why Buyers Prefer Certified Pre-Owned Homes

A brand-new home often has 20 inspection items.

A resale home commonly has 40 or more.


In traditional sales, buyers discover these issues after they are emotionally committed and under contract. That is when renegotiations happen, or buyers walk away.


With Certified Pre-Owned Homes, buyers know what they are buying before they make an offer.


That clarity builds trust.

Trust creates stronger offers.

Stronger offers close more reliably.


The Inspection

Fix It or Disclose It Before the Deal


The average home inspection identifies 40 or more items.


In a traditional sale, this triggers renegotiation. Buyers may request licensed contractors.
 

They may ask for thousands in credits. Or they may cancel the contract entirely.


With CPO:

 

Sellers fix small items upfront or disclose them clearly
They have time to get fair pricing
They stay in control of decisions

Our sellers spend an average of $350 fixing items upfront, or they complete minor repairs themselves. This dramatically reduces repair demands later.
 

The Marketing Appraisal

Confidence in Pricing

​

A pre-listing appraisal removes guesswork.


Buyers gain confidence that the price reflects market value. Lenders gain confidence. Appraisal-related delays are reduced.


This approach has been used in Certified Pre-Owned Homes since 2007. To date, CPO homes prepared this way have consistently appraised when buyers seek financing.
 

Home Warranty

Protection When It Matters Most
 

The first year of homeownership can feel financially tight.


A home warranty, also called a home protection plan, is a one-year service contract that covers many major systems and appliances.


A home warranty can:

Protect the buyer’s budget from covered breakdowns
Provide access to qualified contractors
Make service requests simple and available year-round

During the listing period, many warranties also protect the seller if covered items fail before closing.

 

Why Certified Pre-Owned Homes Sell Faster and for More Money

Certified Pre-Owned Homes put sellers back in the driver’s seat.
 

Instead of reacting to surprises, sellers move forward with knowledge.
 

This leads to:

 

  • Fewer renegotiations

  • Less stress

  • Higher buyer confidence

  • Faster and more reliable closings

  • Often better overall outcomes
     

CPO is not about selling faster at any cost. It is about selling smarter.


Does Your Agent Offer the CPO Program?
 

The Certified Pre-Owned Experts foundation was created by Rowena Patton of All-Star Powerhouse.
 

Since 2006, she has taught this methodology to thousands of agents across the country. Today, there are hundreds of Certified Pre-Owned Experts applying this approach nationwide.


The program is based on her best-selling work on selling homes and focuses on transparency, preparation, and better outcomes.

Find your agent here
 

Selling By Owner

The FSBO CPO Program


If you are selling without an agent, you can still use the Certified Pre-Owned approach.


We can connect you with professional inspectors, appraisers, and home warranty providers who are familiar with the CPO process.


If you choose a Cash CPO full market value option, inspection, appraisal, and upfront repair funding may be handled for you.

 

Want To Skip Showings, Signs and Real Estate Agents?

CashCPO


Ask us for our full market value offer. For a fee as low as 1.5%, you can receive the majority of your equity as soon as 14 days, then the rest when we resell your home, complete with the CPO steps - the appraisal, inspection and a little HGTV type magic! Find your certified agent here, who will explain the process.

Average Costs - for a Traditional CPO

 

These costs may vary, and there are no upfront fee with the Cash CPO program

​

Appraisal $500-$600 

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 $400-$600 -

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 - around $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.


 

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CPOExperts.com

Copyright CPOExperts.com 2007
56 Central Ave, Ste #205, Asheville NC 28801
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