Selling a home can be complicated at times. The idea of a more specific, more convenient, and straightforward real estate transaction has led to new ways of selling homes. This need for more convenient selling of property has also made people abandon traditional selling processes to adopt trending techniques like using iBuyer.
What is an iBuyer?
An iBuyer is a company that makes offers on your home instantaneously by using the latest technology. It is a dramatic change in how people are selling and buying homes, offering a more convenient alternative to traditional selling methods.
In a nutshell, iBuyer is the latest technological way to sell and buy houses in the real estate world. If you want to sell your home without any fuss and quickly, you should not hesitate to sell to an iBuyer.
When selling a house, the traditional way, you have to go through some steps like negotiating with home buyers, soliciting offers, holding open houses, staging your home for it to be perfect, and making repairs. Even if you choose to hire a real estate agent to help you in these processes, it will take some time and energy to maneuver to the finish line.
If you choose an iBuyer, you do not need to put your home for sale through sources like realtors and pray all night for a buyer to appear immediately. iBuyer helps you achieve your ultimate goal effectively when buying a new home or selling your house. Different buying companies can help you make your buying or selling purposes via iBuyer.
The way iBuyers operate depends on the company selected. However, most of theml work in the same way by estimating your home’s value and making an offer. If you accept what they offer, they become the sellers, marketers, and owners of the house. iBuyers offer many services, depending on the one you choose, and be sure of more control of the process.
Different iBuyers have different business models and offer various services. Most iBuyers integrate other services like financing, repairs, insurance, and title to lower the cost of moving and making the process more efficient.
Pros of iBuyer
- Speed
Most homeowners spend a lot of time in the market, trying to attract buyers. According to research by realtor.com, homeowners spend approximately 58 days before finding a buyer. Selling the house to an iBuyer is faster and can happen in less than a week. You do not have to go through the tiring process of finding a buyer while iBuyers will do that.
- Convenient
When selling a home, the traditional way, people are faced with many inconveniences like trying to keep the houses mess-free, especially during open houses and home showings. iBuyer makes your sale convenient and you do not have to go through all these problems.
With few taps on your smartphone or computer, you can get offers from iBuyers. What’s more, iBuyer is an enticing option for consumers who have become accustomed to tech-enabled and in-demand services that allow them to sell and buy what they want easily and quickly.
3.Control and Flexibility
While iBuying transactions occur very fast, you can still stick in your house for a more extended period if you don’t want the fast deals. By choosing iBuying, sellers choose a convenient date which they can modify if need be. They can also stay in the house a bit longer even after closing the deal.
Selling to an iBuyer, therefore, is an excellent option for those who want to sell and buy a house at the same time. Mostly, people in such situations need to sell their house than rent a place to stay before buying their next home.
There is also the other group that buys a new home before selling the other one leaving them juggling two mortgages leading to a strain in their finances.IBuyers are flexible and give you all the control you need since you can move whenever you feel it is right for you.
4.Certainty
When selling a house to a regular buyer, you are always uncertain, and you assume a lot of risks. There are very many reasons why the deal could fail to go through. For instance, the buyers might back out if their home appraisal comes in low, and they can’t pay the difference or reject a mortgage.
When dealing with an iBuyer, a deal can’t fail because they guarantee you that the deal will close. Such assurance is very valuable to home sellers. Before purchasing a house, iBuyers send a home inspector to your house to check its condition. After the inspection, the iBuyer might rescind the offer if the house is in really bad shape or they may lower the offer price. During your iBuyer application, be sure to be upfront about your house’s condition to avoid disappointments after inspection.
Cons of iBuyer
- Lower Profit
IBuyer is a business like any other, and they need to make a profit too. People selling to iBuyers net less money since they have to pay for the convenience of the iBuyer. When iBuying, you are selling your house at a discount.
Anytime people try to sell their houses, they are not getting top dollar. This is because iBuyers charge a fee for taking the house from your hands and preparing it for sale. On most occasions, the fee is around 6%-8%, but it could go down depending on their estimate of how long it will take to sell your house. They often will try to offer you the lowest price they can and it is non-negotiable
According to Marketwatch study, people selling to iBuyers earn 11% less than those selling with realtors. Great real estate agents always strive to have comprehensive marketing strategies that include social media, virtual tours, postcard and brochure marketing, open houses, videos and excellent negotiation skills to get the highest price for your home. If you are looking to buy a home in the Scottsdale Arizona, (where a lot of iBuyers are active) but you want to go the realtor route. We highly recommend The Kay-Grant Group as they fit this description in its entirety.
2.Limited Availability
Since iBuying is in its infancy stages, iBuyers operate in select cities only. Also, firms will only purchase homes that meet their expectations or those within their price range. Notably, iBuyer is still expanding, and consumers will become more educated on what it is, and real estate agents will try to get in front of iBuying and walk sellers through the process.
However, iBuyer might not appeal to all types of sellers and might not account for a large percentage of real estate transactions. IBuying will work best for those selling ordinary homes located in areas with a lot of homogeneities. IBuying might not be convenient for anyone trying to sell a 19th-century hardwood floor that has been impeccably maintained. Likewise, iBuying cannot tag intangibles like sweeping mountain views from the balcony when assessing the home’s value.
Should you use an iBuyer to sell your home?
When iBuying, you are selling your house at a discount, and in return, you simply get convenience and speed. It depends on what you prioritize. If these benefits are more important than getting the highest possible sum of money for your home, iBuying is a viable option. If you want considerably more money from the sale of your home, go for the traditional route with a realtor.
Conclusion
Human beings always require instant gratification, which has become the most significant investment people make. While iBuying makes the selling and buying process convenient, specific, quick, and easy, you will get lesser profit as you have to pay for these services.
