72Sold exploded onto the real estate scene in 2018 with an innovative model to sell homes fast. And for thousands of customers, the company has delivered – netting sellers an average of 8-12% over market value in as little as 72 hours.
But rumors are swirling that 72Sold relies on bait marketing and doctored reviews to hook more clients. Exposing the truth about this darling real estate disruptor means asking: does it’s process actually work? Or are families left high and dry after signing on the dotted line?
What is 72Sold and How Does it Work?
72Sold markets itself as a “better way to sell” for today’s convenience-driven world. The core of its model relies on creating buyer competition to drive up sale prices.
To accomplish this, 72 Sold agents restrict showings to one open house weekend, usually a week or two after listing a home. This builds anticipation among interested buyers, who then scramble to submit their best offer before the showing deadline.
The strategy banks on buyer psychology, causing purchasers to bid wars to “win” the house. And for years, it worked wonders in Phoenix and surrounding areas.
But as housing cools off in previously blazing markets like Austin and Boise, does limiting showings still sweeten sale prices?
On the other hand, for agents, there are monthly fees to access the training and materials. Additional fees allow access to seller leads from it’s advertising.
User Reviews and Complaints Blows the Mind
If online reviews are any indicator, 72Sold delivers outstanding service. The company touts a shining 4.9/5 rating across 2,000+ Google reviews. The company even earned an A+ grade from the Better Business Bureau.
The praise comes fast and effusive from reviewers. “Best experience I’ve ever had,” … “So easy, stress-free,” … “Unbelievable results!”
But looking closer, over half of posted reviews come straight from 72Sold agents – not home selling customers. And among actual seller feedback, experiences run the gamut from delightfully smooth transactions to complete disasters.
There are many user concerns that real estate investment companies using programs like 72Sold are driving up prices, exacerbating housing unaffordability, and trying to monopolize the rental market.
Lydia Rowe, an Youtube creator went through the agent training program but ultimately decided against using it. She felt the marketing was a “bait and switch” overselling the unique aspects. And she was skeptical of the 5-star online reviews.
Positives of the program include good training/support, higher seller convenience, and effective use of buyer psychology. Downsides are it still involves significant showings, no savings on commissions, and overhyped claims.
Is 72Sold a Legitimate Business or a Real Estate Scam?
Make no mistake – 72Sold is a real business with six years of industry experience under its belt. It was founded by Greg Hague, a Phoenix-area real estate veteran, not some shady offshore entity.
And the company made good on its rapid sales and top dollar promises when the market was blazing. That winning formula earned 72 Sold the #10 spot on Inc 5000’s list of fastest-growing U.S. firms just last year.
But as housing dynamics change, the company may be overstating its current competitive edge. Maybe even misrepresenting closed sales numbers to keep up appearances.
Yet legally speaking, the company operates well within industry guidelines. The Better Business Bureau even awarded them full accreditation for meeting transparency standards.
So clients shouldn’t fear outright fraud from 72Sold. But inconsistencies between slick marketing materials and real-world results are cause for careful consideration.
Some of it’s pros and cons are listed below,
The Good:
- Convenient, hassle-free sales process
- Access to highly motivated buyers
- Potentially increased sale price
The Bad:
- Homes don’t always sell within 72 hours
- Numerous showings still required
- Higher realtor commissions around 5%
- Questionable sales data and claims
Other Options for Selling Your House Quickly
If 72Sold’s lightning fast sales no longer hold up, what alternatives help homeowners sell smoothly and profitably?
Many are turning to iBuyers like Opendoor and Offerpad or direct home buyers. While the convenience comes at a steep discount, homes sell in a week and owners get cash fast.
Using a flat fee MLS listing service also trims costs while still opening access to buyers. And if pricing it right, homes can fly off the market even without flash gimmicks.
The key is understanding all the options and tradeoffs when selling. An experienced real estate advisor helps navigate choices tied to individual needs.
So despite slick marketing, 72Sold may not actually be the real estate innovator it claims. But for those needing to sell quickly in 2024’s dynamic landscape, better avenues still exist.
