CPO in depth
Take The Stress Out Of Selling
CPO or Certified Pre-Owned
Three stage process, before the home is listed:
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 do it all the time 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 25+ 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 an average of $2,000 - $2,500 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 2011, and none of our CPO homes has not appraised when the buyer attempts to get a loan. We sell more homes than any other team in the mountains, so this says something about our approach!
Home ownership can feel like a stretch - particulary 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 Allstar CPO program was created by Rowena Patton of All-Star Powerhouse, and she teaches the approach around the country.
Are you an agent offering the CPO Program?
CPOexperts offers monthly coaching. Start out with our Quiz
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.
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 - $500
When do we pay as a seller?
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.