Have you heard of iBuyers? Maybe not, but you’ve probably heard of those signs on the side of the road offering to pay cash for your house, right?
Essentially, there are about the same thing but of course, it doesn’t sound as underhanded, does it?
What is an iBuyer?
iBuyers are primarily an online company that allows you to request an offer for your home, site unseen. If you accept the offer, this company will purchase your home, listed, and then sell it to someone else, typically for a higher price. The offer you receive is lower than what you would normally get if you have listed it on the market traditionally.
Who are these companies?
Surprisingly, most companies like Zillow, Redfin, and Opendoor have their own iBuyer programs and recently, Keller Williams has jumped on board.
They’re basically a company that buys homes from sellers who sign up online. After the company receives the description of the property, they make an offer to the seller within a couple of days, which may or may not include the cost of moving as well. They don’t really differ, they just sound more professional. I mean, who will you sell your home too? Someone that posts a handwritten sign on the side of the road or a company that seems more legitimate with the website?
Of course, it all comes down to price. How much are you willing to get for your home by selling it for cash outright?
Many homeowners just feel that they’re being undermined dead and are not actually getting what the home is worth, and for the most part, that’s true. You’re not going to get as much from the sale of your home by selling to an iBuyer or cash homebuyer as you would by listing it, but really, convenience is the key here. Are you willing to put your home on the market, stage it, conduct repairs, deal with home inspections, deal with buyers, and a listing agent, or do you simply want cash in hand and move on with your life? This is where convenience really can cost you money.
The difference between an iBuyer company and real estate agent.
Yes, you may have to deal with a little bit more inconveniences with a real estate agent but you have quite a bit more benefits:
- Exceptional service and care from an experienced agent.
- Sharp negotiation skills. Someone that can negotiate for your terms and your price.
- Updated communication and making informed decisions through every step of the selling process.
There are dozens of reasons to go with a real estate agent but again, it comes down to price and convenience. This type of program may work better but are you willing to sell your home for a lower-priced knowing they will turn around and sell it for a higher price? That might be something you’re willing to entertain, and then again, you might consider the option of selling with an agent. Even if you had to pay a commission, selling with a real estate agent will usually not you more profit than selling with an iBuyer.
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