What You Need to Know
Breaking Down the iBuying Trend
Selling a home can be a long and challenging process. When you sit down and consider the time and effort it takes to get your home ready to list, conduct showings, and deal with negotiations, you might be tempted to look for a quick, easy solution—like an iBuyer.
Not sure what an iBuyer is or wondering why you should avoid them? Here’s everything you need to know.
What is an iBuyer?
Fast food, next-day delivery, self-checkouts and express lanes—people love getting things done quickly. And now, that trend has entered the real estate world. Many companies are trying to appeal to sellers with the promise of quick money and a seamless sale through a process called iBuying...and many sellers are taking them up on the offer.
The process is simple. The company will crunch some numbers to determine an estimate of your home, then send you an offer based on what they come up with. Oftentimes, the offer is also contingent on a home inspection. Once the deal is done (usually with a cash payment), the company will then market and resell your home for a profit.
As iBuying has gotten more popular, several large companies have signed on to the trend, including Zillow, Redfin Now, and, perhaps the most popular option, Opendoor.
The Danger of iBuyers
A quick sale, cash up front, no staging or showings—it’s easy to be tempted by the simplicity of iBuying. But the negatives of the process end up far outweighing the positives.
To start with, you won’t make nearly as much money off of your sale as you should. Since iBuying is so new, the exact numbers area still being calculated, but some estimates put the loss at up to nearly 50% of the equity of home.
Additionally, iBuying eliminates the personal element of selling. When you opt for an iBuyer, your interactions will be technology-based and profit-driven. The companies behind the buying don’t have an interest in your goals or needs and are solely focused on the bottom line. Often, iBuyers will lowball you when making an offer, leaving you with a much smaller profit to put towards your next home.
Why You Should Enlist an Agent
When you work with an agent, we’ll always have your best interests in mind. From pricing to negotiating, we’ll make your goals our priority—and we’ll be around to answer your questions every step of the way.
In fact, most people still prefer traditional agents to iBuyers. Recent numbers from Zillow revealed that 90% of buyers who looked into their iBuyer program opted for a traditional agent instead. While it’s easy to be tempted by the flashy convenience of iBuying, it’s rarely worth it in the end.
Ready to Make Top Dollar on Your Sale?
From pricing your home accurately to guiding you through the marketing process and everything in between, our team is here to help you sale go off without a hitch. If you’re ready to get top dollar for your home, don’t hesitate to give us a call today.