Maybe you are new to the world of selling your home. You have to sell quickly and have heard stories from family and friends about the headaches and hassles that typically accompany the traditional way of selling a house. You may have heard of iBuying companies, but aren’t quite sure what is entailed.
Or, maybe you are interested on how to invest in real estate with minimal driving or have heard how it’s a buyer’s market and want to flip a house to make a profit. You may have crossed paths with the term iBuyer, and may be curious as to how to get involved with an iBuyer platform.
However, in today’s pandemic society, it can be difficult to get out and about and connect with those who can help you with your selling or buying venture.
According to the home valuation website, Zillow, the short definition of an iBuyer is
These iBuyers will purchase homes sight unseen and rely “on a mountain of data points” to determine their offer.
iBuyer Definition
In this era of same-day delivery, purchasing cars, health insurance, or even your groceries online, it is only expected that houses are next on the ever-extensive list of items you can buy without leaving the comfort of your air-conditioned room. Hence the “i” in “iBuyer” representing “internet,” “instant,”or even, “institutional,” buyer.
However, one important detail that can be added to this definition, is that iBuyers can also be interested individuals as well as companies!
Some people mistakenly think that all iBuyers are all huge companies, but many are local investors or home buyers that have the iBuyer.com platform from which to sell.
Working with an iBuyer or becoming an iBuyer streamlines the process for those interested in quickly and easily selling their home. After filling out a short questionnaire online about your home, an iBuyer will instantly respond with a cash offer, and closing could occur within a few days.
Sellers determine the closing and can be reimbursed with all-cash payouts, home trade-ins, and expedited escrows.
Benefits and Tradeoffs
Selling your home to an iBuyer entails many benefits.
After filling out a short online questionnaire regarding the condition of your home and location iBuyer platforms are able to quickly determine a cash offer for your house, which you may either accept or decline.
You can choose to do your own repairs or have the iBuyer handle the repairs for you. Appraisals and financing are unnecessary, since the iBuyers are purchasing your home with cash and will take care of all the details ranging from inspections to repairs. The only decision you need to make is the closing date!
Having an iBuyer handle all of the details can save the seller time, and allow fewer repair people, home cleaning and staging contractors, and inspectors from coming into your home. If you are concerned about coronavirus, you also don’t have to worry about whether these people are wearing masks, or if they make any contact with you or items in your home since these activities will all take place AFTER your home is sold to an iBuyer.
Some tradeoffs when using an iBuyer may include receiving a lower offer for your home than what a real-estate agent may suggest, as the traditional real-estate agent has to add in their fee into the selling price of the house.
Another difference noted when using an iBuyer instead of going the traditional route of selling a home is that there is little to no negotiation involved, since a computerized model is used to determine the cash offer.
However, the lack of negotiation can translate to less stress for both the buyer and seller translating into time saved and expediting of the process! In today’s world time equals money, so you need to decide what is worth more at this important point in your life.
According to some home inspection websites, iBuyers may come with “higher transaction fees,” and, “lower sales prices.”
Also, one realty company states, “Some sellers might be attracted to the absence of commissions in an iBuyer transaction, which is typically 5-7% of the home’s sale price. However, iBuyers charge fees for their convenience.” These fees are already taken out when the seller is presented with the offer on their home resulting in lower home offers than a traditional realtor would present.
However, if speed and convenience are paramount, using an iBuyer can save time and allow you to leave all the decluttering, staging, and repairs behind.
How Your Home Value is Calculated
iBuyer platforms rely on cutting-edge technology to give you the most current value of your home. The Automated Valuation Model (AVM) takes the date your home was built, your home’s unique features, location, and market trends to compare your homes to other homes that have sold in a similar location with similar features.
The iBuying Process
Selling your home to an iBuyer is simple. All that is necessary is answering a short questionnaire online about your home. An iBuyer will then make you an offer based on the AVM. You can choose to accept or decline the offer.
If you choose to accept the offer, then you choose the closing date!
The Best iBuyers Today
In conclusion, the best iBuyers today are the ones who can instantly get you a cash offer for your home that is competitive and relative to similar homes in your area.
Interested in your home’s current market value? Receive a free online home value estimate!
Even big iBuying companies such Opendoor or Offerpad rely on local and individual iBuyers for their property leads and as a source for home sales.
In conclusion, anyone who is interested in buying or investing in homes or property can become an iBuyer today!
